SHK Latitude Alpha
SHK Latitude Alpha is a multi-manager hedge fund portfolio aiming to generate superior risk adjusted returns through market cycles. The investment process is based upon extensive experience coupled with deep research reliant on a high degree of transparency. The portfolio manager, Allen Sing, has been allocating to hedge funds for 23 years A key underpinning of the process is thorough risk management which aims to vet out undesirable left tail risks, i.e., risks with lower probability but greater severity.
Latitude Alpha Fund’s value to investors is selecting top investment talent to manage their assets. Out of universe of over 15,000 hedge funds, the team carries out extensive research to find the top 20 to 25 managers for the portfolio. In addition, allocating in a dynamic fashion with an understanding of investment cycles is essential. The team leans on their long tenure to allocate to the appropriate strategies for different time periods. Notably, many good hedge funds are also closed to new investors. Through the team’s ongoing relationships built over the years, they bring investments that may not be readily accessible by others.
The opportunity set for investing in hedge funds has improved in 2024 compared to the prior two years. From a macro economic perspective, the investment environment has endured and progressed past the monetary tightening cycle, which has impacted the broader markets.
Market breadth has concurrently improved, which possibly lends to a more favorable environment. With a more robust opportunity set on both the long and short side, overall speaking, some hedge fund managers have been achieving their results with less reliance on the broad market exposure.
In addition, the portfolio seeks to favors managers with a proven ability to protect capital in stressed markets. The challenging market environment of the prior two years have served as a key test, differentiating such managers. This environment has contributed to the onboarding of several new managers that have been valuable additions to the portfolio.
Diversified portfolio of independent hedge fund managers following a range of investment strategies and geographies, with a focus on Asia-based and Asia-focused managers. The program was started in 2017 and launched for external investors in July 2021.