Castle Alternative Invest offers the key benefits of investing in hedge funds by offering a well diversified, actively managed portfolio of high quality funds with low volatility and low correlation to traditional assets.
NAV as of 30/09/19
to USD price
Value creation for Castle AI means providing access to excellent managers with an overlay of active portfolio and rigorous risk management.
In order to meet its investment objectives, Castle AI holds an optimally balanced portfolio across all major hedge fund strategies: long/short, relative value, event driven and CTA/macro. While the strategic allocation weights the four styles equally, the tactical allocation is managed actively. For example, Castle AI’s exposure to CTA/macro has been a key diversifier and one reason for its outperformance when compared to other multi-strategy fund of hedge funds. Currently, opportunities in recovery strategies such as credit and convertible bonds are being explored and reviewed.
A further and major value driver is represented by the investment manager’s experience and access to excellent hedge fund managers around the world. Castle AI is able to provide access to hedge funds that are currently closed to new investors. The majority of the assets are invested with managers that have achieved a consistent and superior investment track record in their market segment, while a minority may be made with younger managers.
We believe that hedge fund manager selection requires a detailed understanding of the various sources of risk and return associated with each strategy. We rigorously analyse these variables so that clients can benefit from the most attractive risk adjusted returns.
This happens through the thorough due diligence and risk management provided by Castle AI’s investment manager. Selection of the managers is made after considering qualitative and quantitative factors and meeting the key managers of the hedge funds at their offices.
Our due diligence and risk management processes do not only focus on an individual fund's market and liquidity risks and its portfolio holdings but also put a strong emphasis on operational issues. This pertains to internal processes and the separation of responsibilities as well as the use of reputable external service providers in such areas as custody, administration and audit. Post-investment performance assessments as well as operational and financial reviews are carried out on a regular basis.
The re-shaping of the hedge fund and financial industries will create interesting opportunities to increase transparency and access, improve alignment of interests and create more compelling investment opportunities for active managers. Castle AI's investment manager always tries to benefit from such opportunities as well as improvements in structuring practices and legal standards. At present, a significant part of the portfolio is invested through managed accounts in order to improve the liquidity and flexibility of the portfolio. Going forward, we intend to increase the degree to which managed accounts are used.
Our rigorous commitment to best investment practices has allowed Castle AI to meet its investment objectives by generating superior returns while successfully dampening their volatility over the longer term.
Benedikt Meyer is an Executive Director at LGT Capital Partners.
Prior to joining LGT Capital Partners in 2010, Mr. Meyer worked for Partners Group AG in Zug and London in various positions. Previously Mr. Meyer worked for a financial services firm focusing on private equity investments.
Pia Skogstrom is an Associate Director at LGT Capital Partners.
Prior to joining LGT Capital Partners, Ms. Skogstrom was head of investor relations at KGR Capital, a specialist fund of hedge fund manager that was acquired by LGT Capital Partners in 2008. Before joining KGR Capital,
Ms. Skogstrom worked for Integrated Asset Management, a global fund of hedge fund manager, and prior to that spent four years in the technology venture capital sector.
Ms. Skogstrom is a member of the UK Society of Investment Professionals and is registered with the FCA.
Tim Steel (British Citizen, 1952) was educated at Eton (Oppidan Scholar) and Trinity College, Cambridge (Philosophy and Law). He joined Robert Fleming as an analyst and was then a pension fund manager from 1974 to 1979. He joined Cazenove & Co in 1980 as an equity salesman and became partner in 1982. Tim Steel ran the New York office from 1983 before returning to London in 1989 when he was made head of UK sales. He was appointed as managing director of Cazenove Capital Management Limited in 2000 and retired as vice chairman at the end of 2009. Since 2011 he has been a non-executive director of ProPhotonix, since 2013 chairman of Committed Capital and since 2014 a non-executive director of WH Ireland Limited, becoming chairman in 2016. Tim Steel was elected to the board of directors of Castle Alternative Invest AG in 2008.
Dr. Konrad Bächinger (Swiss citizen, 1950) received a Ph.D. in law from the University of Zurich. He was admitted to the bar in 1977. He acted subsequently as legal counsel for the St. Gallische Creditanstalt and as head of legal department of Adolph Saurer AG. In 1984, he joined LGT Bank in Liechtenstein as general counsel. In 1989 he was appointed managing director and head of legal matters and project department. In 1990 he became member of the executive board of the bank, heading commercial banking and legal matters. In 1998 he became chief executive officer of LGT Capital Management. In April 2001, Dr. Bächinger was appointed to the group executive committee of Liechtenstein Global Trust, now known as LGT Group Foundation. In 2006, he became a senior advisor of LGT Group Foundation and in 2010 he retired from LGT. Dr. Bächinger is also deputy chairman of the board of directors of Castle Private Equity AG and chairman und board member of several investment companies managed or owned by affiliates of LGT Group Foundation. Dr. Bächinger was elected to the board of directors of Castle Alternative Invest AG in 1997.
Dr André Lagger (Swiss citizen, 1962) received a Ph.D. in business administration from the University of Berne and completed studies at the Swiss Banking School. He began his career at Union Bank of Switzerland in Zurich, moving to UBS London in 1994 as head of corporate development of UBS London. In 1997, he joined LGT Services in Zurich as head of corporate controlling. Subsequently, he became, in 1998, member of the executive board and chief financial officer of LGT Capital Management in Vaduz and in 2001, chief executive officer of LGT Financial Services. Since October 2006, he has been CEO of the business unit operations & technology of LGT Group Foundation. Dr. Lagger was elected to the board of directors of Castle Alternatvie Invest AG in 2011.
Reto Koller (Swiss and US citizen, 1955) received a M.Sc. degrees in business administration, finance and accounting from the University of St. Gallen in 1980 and the London School of Economics in 1981. He joined Winterthur Insurance’s strategic planning division in 1981. He moved to Winterthur Reinsurance Corp. in New York in 1984, where he was vice president of fixed income investments and operations manager until 1989. In 1990, he took over as president and chief investment officer, North America for Winterthur Investment Management Corp. in New York. He resigned from Winterthur North America in 2007. Since 2008 he has been pricipal of Hale international LLC, New Canaan, CT, USA, an investment consulting firm. Reto Koller was elected to the board of directors of Castle Alternative Invest AG in 2008.
Kevin Mathews (Irish citizen, 1960) received a diploma in financial services from the Institute of Bankers at University College Dublin in 1995 and is a Qualified Financial Adviser (QFA). He joined the Irish Department of Labour in Dublin prior to working in key account management for Svenska Handelsbanken in Luxemburg between 1986 and 1995. He was managing director of LGT Bank (Ireland) between 1995 and 2006. He is currently providing consultancy and advisory services to banking, investment funds, local government and charitable organisations including acting as director of a number of private equity and hedge funds. Kevin Mathews was elected to the board of directors of Castle Alternative Invest AG in 2008.