FFC has been successfully investing in hedge funds for many years. Back in the mid-to-late 1990s, it became clear to us that a wave of Wall Street talent was migrating to this space. Moreover, we viewed the opportunity to invest in "absolute return" funds, as opposed to benchmark dependent long-only funds, as a compelling way to invest in the financial markets.
In its early stages, FFC invested primarily through hedge fund of funds (FOFs) and a select number of direct hedge fund strategies. Because of this, FFC was able to slowly "learn the ropes" and gain exposure to the space.
As the industry evolved, so did FFC. Decisions were made to strengthen our internal team, develop "best practices" throughout the portfolio, and focus exclusively on building out the direct hedge fund portfolio.
Today, the FFC hedge fund portfolio consists of over forty single strategy hedge funds. The portfolio is well diversified, and is invested across a wide range of hedge fund styles and strategies, both US and abroad. Our approach is to stay ahead of the pack. We continuously review our funds, visit our managers, challenge underperformers, build our network, source new ideas and seek emerging opportunities – all with the objective of improving our portfolio.
Our goal is superior risk-adjusted returns, and the firm has chosen to be very transparent regarding our track record achieving it. Although FFC does not manage hedge fund assets for outside investors, we believe it is important for potential hedge funds to see our long-term commitment to the space and performance expectations.
We enjoy learning about new hedge fund strategies. If you would like to send us information on your firm, please click here.