Idea Generation and Sourcing
The first step in providing you with access to quality alternative investments is
idea generation and sourcing premier investment managers from the vast and growing
universe of alternative investments.
Identifying Quality Hedge Fund and Managed Futures Investments
Sourcing quality hedge funds and managed futures investments is a continual focus
of our firm. The sourcing of investment ideas and specific managers is derived from
the years of alternative industry experience within the firm. Altegris’ network
of relationships with investment professional plays an important role within both
the top-down and bottom-up evaluation process. Specific sources can include alternative
investment managers, traders, research analysts, other industry contacts and existing
investment manager relationships.
Evaluating Managers and Investment Programs
Once we have identified managers that are of initial interest, these investments
are presented to our Investment Committee, responsible for qualification, approval
and ongoing review of all investment managers on our platform. Comprised of the
four Altegris principals, and both the Managing Director and the Vice President
of Research and Investments, this committee determines which of these initially-reviewed
investments advance for further evaluation in the next stage of review.
Preliminary Manager Review by our Investment Committee
Once we have identified managers that are of initial interest, a preliminary investment
review is prepared for approval by our Investment Committee, in order to move forward
with the due diligence process. This review includes details regarding the specific
strategy/manager and the rationale for inclusion on the Altegris platform. Our Investment
Committee is responsible for qualification, approval and ongoing review of all investment
managers on our platform.
This preliminary investment review cannot, of course, remove all of the risks associated
with an investment in hedge funds or managed futures*.
Click here for the next step in the process:
Investment Assessment and Manager Qualification.
* Understanding Our Process
Altegris Investments offers its client’s what we believe are high quality alternative
investments. As part of our effort to meet that goal, our investment professionals
provide high quality due diligence on the investments on our platform. The term
due diligence as it relates to securities offerings has its origins in the Securities
Act of 1933 and provided a defense to underwriters in public offerings who could
demonstrate that they made a reasonable investigation and reasonable determination
that the terms of the registration statement were correct. The terms "reasonable
investigation and made a reasonable determination" came to mean the standard of
reasonableness that a prudent man would exercise in dealing with his property. Originally
the term was limited to public offerings of equity investments, but over time it
has come to be associated with investigations relating to private and other offerings
as well. Of course, due diligence is not a panacea against investment failures or
even against fraud. Even a well run fund can fail due to unpredictable market conditions,
unforeseen competition, or technical setbacks. All investments contain risks and
alternative investments are subject to a set of unique risks. Similarly, some frauds
are difficult or impossible to detect regardless of the thoroughness of the due
diligence effort. As a result, our due diligence effort is not a guarantee that
the funds we offer will succeed or that we can uncover every instance of fraud or
potential fraud. Rather, it is a designed to help us determine that the management
and operations of the investments on our platform have sound operating and trading
infrastructures and to increase the odds that that their managers are doing what
they say they do and will continue to do so. Our due diligence is performed by a
team of highly experienced professionals. Although there are components of our due
diligence efforts that are common to all of the investments we offer, each due diligence
effort will rise of fall on in light of the particular facts and circumstances of
each offering. The following describes in general terms the starting point for our
due diligence inquiry. The list is not exhaustive and not all items listed are components
of every investment review. While checklists can provide a useful starting point,
there is no "one size fits all" due diligence inquiry. For example some of the investments
on our platform, like managed futures accounts and commodity funds, provide us with
complete trade transparency. Other investments, like fund of funds, offer us little
or no trade transparency.