Hedge Fund Awards 2015

Hedge Fund Awards 2015 www.acquisition-intl.com 35 Shorter-Term Horizon - The long-term is difficult if not impossible to predict ● We employ a shorter-term forecast horizon, which demonstrates ro bust accuracy over decades of varied economic and market conditions Diversified Factor Drivers - Integration of economic, value and technical factors is key ● We integrate measures of value and momentum to improve forecasts ● Similar to earnings growth, P/E and momentum in equities A Disciplined Process - Adherence to objective/disciplined vs. discretion- ary investment approach ● Avoids human bias in the investment decision The true value of our philosophy is shown in our ability to convert our robust back-tested research results into an actual 11½ year track record of excess returns across a variety of market conditions, including a global financial crisis. You have been named Best Global Interest Rate Specialist in the Hedge Fund Awards. What about your business do you think led to your peers and clients voting for you? I believe we have been selected by our peers and clients for the Acqui- sition International hedge fund award for several reasons. First, we have achieved significant positive alpha over the past 11 ½ years, a period of both rising and falling interest rates, a global financial crisis and extensive central bank intervention, a challenging period for many, including Dix Hills Partners. Second, we have generated this alpha using a highly disciplined process in the most liquid global sovereign debt markets - US, Japan, Germany and the United Kingdom. Third, we have been able to generate an attractive return level based on our skill level, not on extensive leverage. Finally, our 11 ½ year return profile has demonstrated a consist- ent “non-correlation” to the major benchmarks and assets classes, which has enabled investors to achieve true diversification through an allocation to our strategies. How do you see the current state of the hedge fund industry? The hedge fund industry has grown to become a fully institutionalized marketplace. As the process is now institutionalized, the bulk of new allocations often find their way to the largest hedge funds. This results in a drag on the performance of some of the largest hedge funds as they lose flexibility in the markets due to their size. While there are many programs for emerging managers, very little of the overall assets are allocated there. As a result, it is becoming difficult for new ideas and strategies to enter the marketplace. Investors want to allocate to the largest funds for safety and comfort, and yet at some point, too much money ultimately affects returns. What plans does your firm have for the coming months and years? With the institutionalization of the financial services and hedge fund industry, we have pursued discussions with potential strategic partners with critical mass and distribution capabilities to help us broadly deliver our expertise to institutional and individual investors. The right partnership will enable us to help investors on a larger scale with their critical investment needs: • Strategies generating opportunistic returns with high liquidity • Expertise in assist in helping manage interest rate exposure. We are highly confident our investment approach, employing our unique short-term horizon, will offer investors the flexibility in adjusting their port- folio and interest rate exposure to the ever-changing economic environ- ment. As 2014 demonstrated, proper timing in the re-positioning a portfo- lio for an eventual rate rise is critical in being able to fully take advantage of interest rate movements. Our investment approach, which is based on researching over 50 years of interest rate movements, has served us well for over 11 years. We expect it will continue to benefit our investors going forward, as we seek to assist them with future market challenges. n Best in Global Interest Rate Specialists