Mellon Offshore Global Opportunity Fund, Ltd. strategy integrates multiple alpha producing factors across diverse equity, fixed income and currency markets, providing a broad set of investment alternatives to seek profitable investment opportunities. In order to exploit misvaluation opportunities, we take positions in highly liquid benchmark based instruments or individual sovereign bonds. Most component strategies are market neutral. One of the component strategies can take long and short positions among global stocks, global bonds, and cash.
Mellon Offshore Global Opportunity Fund, Ltd. seeks to generate high total returns with lower than equity-like risk, while having a low long run correlation with the broad equity market. To achieve this goal, we allocate risk capital to the following three strategies depending on the opportunity; 1- Global Relative Value strategy (Global Tactical Asset Allocation), 2- Global Currency strategy, and 3- Global Yield Curve Arbitrage strategy. All component strategies in the GO Fund are based on proprietary quantitative models that reflect forward looking estimates of risk and return. We dynamically vary the risk budget so that we put more weight on a strategy when its expected return is higher. Long short implementation seeks to increase portfolio efficiency by generating returns not only from buying cheap assets but also from shorting over valued assets. At the same time, our long short implementation seeks to minimize market exposure.
Performance and assets shown are for the Mellon Offshore Global Opportunity Master Fund.