Tradex Selection Process
Hedge fund selection is systematic with a discretionary overlay – we combine our model output with seasoned judgment when deciding both to invest and to redeem. The systematic component is built around our three in-house models (TRAMS, STRAMS, BEMS) that rank over 8,000 hedge funds every 30 days by distinct quantitative and qualitative factors.
The qualitative process is equally systematic. Rigorous operational due diligence is conducted before any investment is made. Background checks, service provider checks, asset reconciliations, reference checks and procedure reviews are the start of the process.
Qualitative due diligence extends to our requirement that we thoroughly understand the investment methodology and process of all hedge fund investments.