AlphaPlus
FoHF Ltd. : a Fund of Hedge Funds
AA
Management, Ltd., a BVI company, is the
Investment Manager of AlphaPlus FoHF Ltd. a multi strategy, multi manager
fund of Hedge Funds.
AA
Management Ltd. choosed Alterama
Inc as Investment Advisor. Alterama is a US licensed Commodity
Trading Advisor and Commodity Pool Operator, regulated by the CFTC
and an NFA member.
Selecting
Advisors
AA
Management seeks those managers it considers to be "best of breed" by
performing a 4-part selection process.
I. The process begins with a series
of quantitative filters used to identify the managers who rank among
the best in their peer group.
II. Those who pass AA Management's
initial screening are then subjected to an intense qualitative evaluation.
(AA Management is careful to measure managers on their individual
merits and on their relative, differentiating qualities.)
III. One of the most important aspects
of AA Management's due diligence process is the face-to-face meeting
with the manager. Here, AA Management is able to:
- Understand clearly the
manager's strategy and edge.
- Evaluate the manager's asset allocation, hedging,
leverage, and risk management policies and procedures
- Measure the viability of the manager as a sustainable
business.
- Meet the manager's principals and key staff and
understand their responsibilities and relationships.
- Assess the manager's procedures for back office
and position valuation.
- Evaluate the viability of the manager's systems
and disaster recovery.
- Perform background screenings.
IV. Following the face-to-face meeting,
AA Management conducts another series of quantitative studies based
on what has been learned to date. Frequently these studies focus
on
stress
testing and scenario analysis of performance and volatility, especially
during times of market dislocation or poor performance for the strategy.
Risk
Management
We
view risk management as a continuation of our rigourous Due Diligence
process. The primary goal of the Due Diligence process is to
establishe accurate expectations for
every manager. The goal of risk management is to identify and
minimize risk by monitoring for deviation from the expectations
established during the due diligence process. Examples of possible
deviations include excessive volatility, trading in unauthorized
markets, excessive leverage, and style drift.
