Criteria Investment Partners


Fund Investment Objectives

The Fund integrates a US dollar-neutral long-short equity portfolio with an overlay of market directional strategies. The approach is implemented systematically following a rules-based process. The long-short equity component is a fundamentally-based all-cap value strategy. On the long side, we look for companies that are growing and fundamentally sound, but overlooked. On the short side, we look for companies showing multiple signs of vulnerability and fundamental weakness. The directional component is a set of signal-driven strategies that trade equity futures to exploit opportunities resulting from enduring characteristics of market behavior. The directional overlay is the Fund's source of net (long/short) exposure. Performance Highlights: - Positive gross returns every calendar year since inception including 2008 (up 10%); only one negative net return (2011) - 1, 3, and 5 yr annualized net returns range between 11.5% and 13.1% (as of Aug 2014) - The three sources of alpha -- longs, shorts, directional equity market trading -- are uncorrelated to one another - Alpha from our short book exceeded 20% in 2011, 2012, and 2013, respectively; exceeds 10% in 2014 YTD - Vastly superior Martin Ratio (1.74) due to sharply smaller and briefer draw-downs than the market and peers - Rolling 3-year Sharpe ratio has ranged between 0.8 and 1.3 each month since Mar-2012 - Rolling 3-year Sortino ratio has ranged between 1.0 and 3.0 each month since Mar-2012 - Upside volatility (12.5) substantially exceeds downside volatility (8.1)