The Fund consists of 3 different investment strategies, and capital is allocated to each strategy based on the strategy's risk profile - the more risky the strategy, the less capital is allocated to it.
1 - Hedge Fund Clone strategy (20% allocation) - This strategy follows the worlds most successful Hedge Funds, looks at the common stocks held across these Hedge Funds, and invests in these common stocks. The Fund was started being 100% invested in this strategy, however in May 2022 the Fund was diversified and now includes the 2 strategies below.
2 - Global Asset Allocation strategy (45% allocation) - This strategy looks at the main asset classes globally (US Equities, Real Estate, Commodities, Bonds, Foreign Equities), and invests in the strongest 3, based on a momentum formula.
3 - US Sector strategy (35% allocation) - A similar strategy to no 2, however instead of using Global Asset Classes, it uses the 10 different sectors of the US market, and invests in the 3 strongest.
When the Fund was started, it was 100% invested in strategy 1. In the Growth meltdown in q1 of 2022 , the drawdown suffered by the portfolio was greater than anticipated. The portfolio became too concentrated in the growth names, and the speed and size of the falls was not anticipated. From that it was decided to diversify the portfolio, and reduce the risk profile.