Benefits of Hedge Fund Investing

Investment Alpha • Uncorrelated Returns • Downside Protection • Diversification • Investment Creativity

Accessing Alternatives Is Difficult

Going Direct to Hedge Funds

PROS

  • Control of allocations
  • Customized portfolios
  • Better transparency

CONS

  • Time consuming
  • Requires expertise
  • High minimum investments
  • One fund is not a solution

Fund-of-Funds

PROS

  • Diversification
  • Strategy expertise
  • Broad access
  • Lower minimums

CONS

  • “Black box” mentality
  • One-size-fits-all approach
  • Extra layer of fees

Alternative Mutual Funds

PROS

  • End-of-day liquidity
  • Third party custodian
  • One click allocation
  • No K-1

CONS

  • Limited toolbox
  • Lack of transparency
  • Poor performance
  • Manager selection bias

Benefits of Going Direct Without the Cost

Direct Investing:

  • 2% Management Fee
  • + 20% Performance Fee
  • + Analytical Manpower

Funds of Funds:

  • 2% Management Fee
  • + 20% Performance Fee
  • + 1% Management Fee
  • + 10% Performance Fee

Alternative Cap:

  • 2% Management Fee
  • + 20% Performance Fee

ACA Innovations

Centralized Investment Platform • Customizable Hedge Fund Portfolio Construction • Cost Effective • Expert Evaluation • Tax & Reporting Simplicity • One Signature • Lower Minimums

Barriers to Hedge Fund Investing

No easy and cost effective ways to access and integrate hedge funds into portfolios.
Finding an authentic partner with hedge fund expertise.

Expensive
Accessibility
Expertise
Too Much Choice
Legal Structure
Secretive
Liquidity
Lack of Transparency
Marketing & Information Restrictions
High Minimum Investments
Fear
Diversification
Tax Reporting