Hedge Fund Awards 2015 www.acquisition-intl.com 60 Compass Strategic Investments and Sit Investment Associates jointly operate absolute return, enhanced index and rising rate programs for investors for onshore and offshore investors. Todd Horsager, CFO, Compass Strategic Investments, told us more about the two firms’ Custom Alpha Bond Investment Program and how it generates consistent results for clients. Compass Strategic Investments is a CTA focusing on futures/ options. Compass and Sit Investment Associates – a 33-year- old asset manager with $14bn in fixed-income and equity in- vestment programs – jointly operate absolute return, enhanced index and rising rate programs for investors for onshore and offshore investors. Absolute return bond funds, says Todd Horsager, CFO at Compass, offer to investors superior risk-adjusted returns com- pared to appropriate benchmarks, and avoid excessive return volatility to generate consistent results over an economic cycle. “In addition, credit risk is reduced due to quality investment grade security investments,” he says. “Our strategy is to seek superior risk-adjusted returns com- pared to appropriate benchmarks and avoid excessive return volatility to generate consistent results,” he says. “We are also able to port the alpha generated from the bond program to other equity indexes such as the S&P 500 and asset replications to add alpha generated by the bond program to the index or asset being replicated.” On being named Best Absolute Return Program: Custom Alpha Bond Investment Program – Minnesota, Horsager says, “We are honoured to receive this award by our peers and hedge fund industry investors. “A key driver [in winning the award] is our investors have enjoyed value-added performance in excess of 9.5% per year over the 3 month LIBOR benchmark with a standard deviation average around 4% during the 6.5 years since inception.” Best Absolute Return Program: Custom Alpha Bond Investment Program - Minnesota Name: Rob Harrigan, Sit Investment Associates Address: 3300 IDS Center, Minneapolis, MN 55402 Email:
[email protected] Phone +1-612-359-2583 Name: Todd Horsager, Com- pass Strategic Investments Address: 2500 County Road 42 West #101, Minneapolis, MN 55337 USA Email: Todd.Horsager@com- pass-si.com Phone +1 952 808 6915 Fact File Best Alternative Investment Management Law Firm Address: 45 Broadway, Suite 610, New York, NY 10006 USA Tel: +1 212 732 4029 Fax: +1 646 607 1998 Web: www.tlcorplaw.com Fact File Asked about the current business environment, Horsager says US Federal Reserve and other central bank rate management strategies mean the fixed-income investment environment con- tinues to generate interest rate and duration risk management challenges. The bond program currently enjoys a yield advantage over Euro-denominated fixed income in many EMEA countries, says Horsager. “Thus, moving investments in fixed-income to a US Dollar bonds for US companies treasury investments and other Europe based investors may present interesting yield advantages and foreign exchange risk benefits.” Over the next 12 months, the two firms will seek to expand their investor base with investors to move cash from money market or short term programs, Euro denominated investments with nominal yields to cash reserve investment strategies like our bond program, Horsager says. “A recent European Central Bank development pledging at least 1.1 trillion Euros in an asset-purchase program creates an interesting opportunity for investors to port the al- pha generated from the bond program to EMEA equity indexes like the German DAX, French CAC 40, United Kingdom FTSE 100, Pan Europe Euro Stoxx index and other asset replications. The investor objective may be to create a structural enhance- ment to the investment return by porting the alpha from the bond program to be added to the equity index returns. ” n LoPresti Law Group, P.C. is a leading corporate and securities law firm providing comprehensive legal solutions to clients around the globe. LoPresti Law Group, P.C. (LLG) has distinguished itself by inte- grating legal expertise, practical business experience and a unique understanding of the financial markets into its approach to the practice of law. This distinctive combination of skills and experience enables LLG to provide practical, results-oriented, business-focused solutions to its clients’ complex and diverse legal needs. Marc LoPresti is the Founder of LoPresti Law Group, PC. He is also co-founder of BattleFin Group, LLC and BattleFin Asset Management, LLC, and is a recognized authority on alternative investments. LoPresti Law Group, P.C. was awarded the 2014 In- ternational Hedge Fund Awards “Securities Law Firm of the Year” and most recently the 2015 International Hedge Fund Awards “Best Alternative Investment Management Law Firm”. Marc has structured and launched numerous alternative asset management ventures during his 17+ years of practice as a securities attorney in New York. Marc appears regularly as a guest host/panellist on CNBC’s “Closing Bell”, “Squawk Box” and other network shows as well as other financial news networks including Bloomberg, Fox and international financial news networks. Marc obtained his practical experience in financial markets during his time at Lehman Broth- ers, during which he worked on the floors of the NYSE and AMEX and eventually working under the director of Lehman’s institutional sales desk. Marc also has a highly diversified family office consulting practice, providing advice to ultra-high net worth families with total assets in ex- cess of $10billion. He graduated from New York Law School in 1997. Marc serves on the Board of Advisors of BlackRidge Technology Holdings, Inc., a cutting edge cyber-security company, SAS Capital Advisors, Ltd., an emerging hedge fund manager investment platform, and an airline. Marc also serves on the Membership Committee of the Manhattan Yacht Club. n Compass Strategic Investments LoPresti Law Group