Hedge Funds-of-Funds
Hedge funds-of-funds are actively managed funds that combine several hedge funds into a single structure, offering a professionally managed and diversified portfolio of hedge fund strategies. Hedge funds-of-funds managers develop and implement the multiple strategy allocations, identify and hire the underlying investment advisors, allocate capital among the strategies and advisors, and monitor the performance of the underlying funds. Investors, as a result, receive the benefit of a professionally researched, commingled investment without committing substantial resources to manager selection, portfolio construction, ongoing risk management and rebalancing.

Objectives:

  • Risk Reduction and Return Enhancement: Generally, these funds seek consistent, risk-adjusted returns with lower volatility than traditional investments.
  • Diversification: In general, these funds provide exposure to strategies that span a variety of asset classes.

Key Features:

  • Access to hedge funds that might otherwise be closed to new investors.
  • Typically lower minimum investments than single-manager hedge funds.
  • The potential for mitigating some risks inherent in single-manager hedge fund investing.

Hedge Funds at UBS
UBS offers a wide range of hedge fund products to eligible individual investors and institutions. These products are designed to help achieve diversification within traditional investment portfolios. We also offer:

  • A Variety of Best-in-Class Domestic and Offshore Funds: Our privately placed and publicly offered funds include a suite of proprietary funds as well as direct access to leading third-party managers. All funds are managed by experienced investment professionals with demonstrated track records.
  • A Wide Array of Strategies and Structures: Our hedge funds cover a wide array of investment strategies, including long/short equity, relative value, event-driven, multistrategy, credit/distressed, directional/tactical, commodities and sector-specific. We offer a number of structures, including single-manager hedge funds, hedge funds-of-funds and structured products on hedge funds.
  • In-Depth Manager Due Diligence: Each fund that we recommend is subject to an initial investment and operational due diligence process, and after its selection, ongoing monitoring. The investment process combines data gathering and analyses, as well as onsite manager visits, with the qualitative judgment of our experienced and highly regarded professional team.

About Alternative Investments at UBS
A leader in the alternative investments arena, UBS offers high-net-worth, ultra-high-net-worth and institutional investors an array of alternative strategies to help them achieve more efficient diversification within their traditional investment portfolios. The Alternative Investments US team, headquartered in New York City, develops, manages, distributes and services a suite of best-in-class proprietary and third-party alternative investment offerings across a variety of asset classes and investment strategies for domestic and offshore clients.


contact a Financial Advisor for more information

Past performance is not indicative of future results.

Alternative investment funds ("Funds") are not appropriate for all investors, and carry specific risks above and beyond those associated with traditional asset classes.

Alternative Investments US provides investment management services to qualified high- and ultra-high-net-worth investors. Eligibility requirements for alternative investments begin, generally, at a net worth greater than $1.5 million (including a spouse) for individuals or $5 million for companies.

The Funds are not mutual funds and are not subject to the same regulatory requirements as mutual funds. The performance of the Funds may be volatile, and investors may lose all or a substantial amount of their investment in the Funds. The Funds may engage in leveraging and other speculative investment practices that may increase the risk of investment loss. Portfolio assets of these Funds typically will be illiquid. The Funds may not be required to provide periodic pricing or valuation information to investors. They generally involve complex tax strategies and there may be delays in distributing tax information to investors. The Funds may charge high fees that would reduce profits. Interests of the Funds are illiquid and subject to restriction and change. An investment in the Fund is long term; there is no secondary market for the interests of the Fund, and none is expected to develop. Interests of the Fund are not deposits or obligations of, or guaranteed or endorsed by, any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other governmental agency. Investors should consider the Funds as a supplement to an overall investment program.

The information provided is an overview of alternative investments and structured products at UBS. The information is intended for educational purposes only and does not constitute investment advice. Among other things, it does not take into account your personal financial situation, your investment goals or your investment strategies. You should not construe any information provided here to be an investment recommendation for you to follow. You should contact your Financial Advisor for information or recommendations that may be useful specifically to you.