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The money network:

The money network:

Why crowdfunding threatens traditional bank lending

July 2006

Enhanced returns: Hedge fund overlays catch on

With some institutional investors still indecisive about allocating investments to hedge funds, and some still struggling to get to grips with portable alpha, it’s a relief to know that others are so ahead of the curve that they are putting the two elements together.


Northwater combines hedge funds with portable alpha.

“Allowing investors to choose their own overlay portfolio assuages concerns about hidden costs of portable alpha”
Paul Robson, Northwater Capital

Northwater Capital Management has developed a platform that enables institutional clients to enhance returns on an indexed portion of their portfolios by linking the underlying investment to returns on selected hedge funds or funds of hedge funds. Paul Robson, president of Northwater Capital, says that the strategy is gaining popularity among university endowments and pension funds. Over the past 18 months, Northwater has won 10 new portable alpha accounts and is being considered...


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