Hedge Fund Awards 2016

Hedge Fund Awards 2016 53 Dix Hills Partners: A Global Interest Rate Strategy – Taking a Short-Term Approach Our systematically-based investment philosophy is derived from our extensive research studying up to 50 years of interest rate movements across the largest sovereign bond markets. We have generated an attractive risk-adjusted return over 12 ½ years for investors by assessing the short-term direction of major sovereign bond markets using a systematically integrated set of macroeconomic, valuation and technical factors. For maximum liquidity, we use exchange-trad- ed 10-year note futures across the four most liquid interest rate futures markets (U.S. 10 year Treasuries, German Bunds, U.K. Gilts and Japanese JGB’s). The strategy is designed to be independent of interest rate direction with a time-weighted duration exposure of approximately zero to each debt market. This helps explain the consistent lack of correlation to fixed income benchmarks. We have achieved this over a challenging period with both rising and falling inter- est rates, a global financial crisis combined with government market intervention that fostered historically low global yields across the four market yield curves. Our Solutions are Aligned with Today’s Investment Needs • A “Liquid Alternatives” absolute return strategy to improve diversification through non-corre- lation • An “Opportunistic” or “Unconstrained” Fixed Income alternative to enhance return and gain better control of interest rate exposure risk Given today’s depressed global yield levels and consequent interest rate concerns along with credit and liquidity challenges, we believe Dix Hills’ solutions present an opportunity for both al- ternative and fixed income investors. Our solutions may play a valuable role in helping investors to meet their longer-term return and risk objectives. Incorporating Attractive Strategy Attributes Demanded By Many Investors • High-quality global sovereign exchange traded futures o Highly liquid, transparent and scalable • Consistently uncorrelated alpha over time o Minimal correlation to traditional and alternative benchmarks o Potential to improve diversification and a higher overall Sharpe ratio when added to a portfo- lio o No long-term consistent beta exposure • Alpha generated using true skill, not excessive leverage • Fundamentally based approach with highly disciplined implementation o Strict risk management discipline and parameters • Customizable to specific return and risk parameters Our Philosophy: Quality Research, Consistently Applied Partner Backgrounds: • 18 years of institutional management experience employing a similar approach to fixed income portfolios • Partner experience includes: o The Federal Reserve Bank of New York o UBS Global Asset Management o PaineWebber Economic Research o Merrill Lynch Capital Markets Company: DIX HILLS PARTNERS, LLC Email: [email protected] Web: http://www.dixhillspartners.com/