1. They actively seek hedge fund strategies with defined risk parameters and uncorrelated/absolute-return profiles.
A low-correlation, risk-disciplined, high-conviction hedge fund can fit their absolute return sleeve and diversify their public equity and private market exposures.
5. They maintain a balanced allocation between public markets and alternatives.
A hedged, concentrated equity strategy can complement their public market and alternatives mix, providing differentiated return drivers within a diversified policy portfolio.
6. They prefer sourcing new managers via referrals and the institutional network.
Signals outreach should reference mutual relationships or credible institutional ties—well-suited to a boutique manager introduced through existing LPs or peers.