Signet Tailor-Made Portfolios

Model Portfolios for Tailor-Made Solutions

Signet advises or manages portfolios tailored to meet the risk and return objectives set by our clients. These generally would include non-directional underlying portfolios that limit market exposure. Portfolios are designed to deliver a defined level of return and volatility within a strict risk management framework. Signet typically invests in seasoned but small to medium-sized managers, as the opportunity set is greater. Our investment team is made up of highly experienced due diligence specialists.

Signet Hedge Fund Advisory, March 2019 Download

Given where we are in the market cycle, Signet currently proposes the following Portfolio Model solutions:

Equity Substitute Portfolio

Equity Substitute is a multi-manager, absolute return replacement for an equity portfolio.

Why Desirable?

  • Targeting +5% to +8% in USD, Sharpe 2
  • Non-Directional
  • Event Driven
  • Protects from Falling Markets

Bond Substitute Portfolio

Capital Protection, Store of Wealth Mandate

Bond Substitute is a multi-manager, absolute return fund replacement for a bond portfolio.

Why Desirable?

  • Targeting +5% to +8% in USD, Sharpe 2
  • Neutral Relative Value and Arbitrage Positioning
  • Protects from Inflation or Rising Interest Rates
  • Protects from Falling Markets
  • Bond Markets are at Generational Highs, Yields at Dangerous Lows.

Arbitrage Portfolio

+3% to +5% Objective in USD, Sharpe > 1

A portfolio to truly preserve wealth. A conservative non-directional portfolio in which market directional risks are low and the objective is to retain the store of value of holdings. In other words, not take a large risk with capital but earn a return in excess of fees, inflation and taxes.

High Conviction Portfolio

+8% to +12% Objective in USD, Sharpe > 1.5

To outperform, an investment must be either a) concentrated, b) correctly thematic and/or c) leveraged. Signet portfolios tend not to use excessive directional leverage.

Other Portfolio Suggestions

In addition, Signet may offer other innovative thematic investment portfolios. These might include themes such as:

  • Emerging Market alternative managers - when out of favor;
  • Commodities, Precious Metals and Mining - as a store of value when the USD and currencies are weakening or inflating. Energy and Basic materials benefit from higher inflation and/or a weaker U.S. Dollar.
  • Corporate Event Driven portfolios – Investing in Mergers, acquisitions, spin-offs or refinancings. Events drive returns, not market movements.
  • Stressed and Distressed Recovery portfolios – benefit from securities that have sold off yet have recovery value.
  • Shoot for the Stars portfolio – a more aggressive selection of the managers who are expected to outperform in a forward-looking environment. Each manager has an expected return potential > 15% p.a.
  • 3-5 Year Lock-up portfolios – longer lockup can allow a portfolio to capture a liquidity premium by taking advantage of longer-term opportunities.
  • Euro-Based (not USD hedged to euro) to avoid paying the interest differential

There is a time for bonds, a time for equities, a time for hard assets, and a time for cash. Signet has over 25 years of experience building investment portfolios across strategies, geographies and time cycles. Opportunities are there in one market phase, gone in another.

Don’t forget Signet’s own Global Multi-Strategy Fund, which has been in existence for over 15 years. Liquidty is monthly.

+4% to +7% annual return objective in USD, Sharpe > 1

A broad multi-strategy portfolio of managers in which risks are low and the objective is to preserve wealth and generate returns 2% to 4% above risk-free rates.

For further information on any of these Tailor-Made Portfolios, please Contact Us

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