The HCP Absolute Return Fund seeks to generate capital appreciation that can match or exceed returns generated by major equity indices over the long term, with less volatility and limited correlation to broad market moves. To accomplish this, the Fund invests in hedge funds with distinct and complementary strategies and focuses its asset allocation to provide its desired composite return pattern. The Fund invests primarily in hedge funds that allocate to three general absolute return strategies - namely, event-driven, relative value and equity hedge strategies. Event-driven strategies such as distressed investing, merger arbitrage, restructuring and spin-off investing effectively focus on substantial corporate events or other capital structure dynamics at different points of the business cycle. Relative value strategies such as fixed income arbitrage, convertible bond (and related option or volatility-related) arbitrage, equity index arbitrage and pairs trading have historically generated uncorrelated returns from investments targeting spread relationships in often related securities. These two strategies frequently utilize portfolio leverage to a large extent and warrant investors' careful consideration as a result. Equity hedge strategies encompass both long and short investments in a single portfolio and comprise another method for which fundamental research can potentially be used to extract value from market pricing inefficiencies. The Fund invests in portfolio funds that have the ability to execute two or more of these strategies. Portfolio Funds with these capabilities are described as multi-strategy. The Fund invests in multi-strategy Portfolio Funds with the ability to fundamentally construct a portfolio that is opportunistically positioned across different market cycles. In seeking to create a balanced portfolio to achieve attractive overall returns, the Fund seeks to mitigate risks inherent in any single investment strategy. Based on Hall Capital Partners' experience and current expectations, the portfolio's long-term composition consists of approximately 70% in absolute return strategies and 20% in equity hedge strategies. Incremental deviations from these targets are made when, in the view of the Firm, prevailing conditions alter the relative attractiveness of different sectors.
Management fee: 0.75% for $10MM or more, 0.85% for less than $10MM