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Investment Philosophy

Salus Alpha focuses on consistent returns with preservation of capital and liquidity of assets. To meet this objective, we focus on three key elements: manager selection, portfolio construction and risk management. We continuously seek to adapt to the changing environment and strengthen our capabilities. Our drive is to constantly develop business operations and analytical tools, which give us an edge in the industry.

Manager Selection. Salus Alpha’s aim is to select, combine, and monitor the best hedge fund managers and strategies for its portfolios. Unlike other firms we believe that state of the art due diligence is the core component for successful manager selection. We focus on a qualitative selection process because we consider a purely quantitative process to be limited due to the inherent uncertainty of hedge fund performance figures.

Portfolio Construction. Salus Alpha takes the portfolio construction seriously since it is our belief that allocations to managers and investment strategies have to be consistent with the portfolio’s risk and return objectives. We diversify our portfolios across factors such as risk, strategy, liquidity and correlation. We keep the alpha in the portfolio while not sacrificing investors’ liquidity due to our sophisticated portfolio construction.

Risk Management. Salus Alpha identifies risk management as an integral part of the investment process. We believe that risk management can only be carried out efficiently on transparent portfolios. Due to our liquid portfolios we are able to deploy sophisticated quantitative risk management techniques with our unique risk management tools to verify and measure alpha. Therefore, we have never had a manager default in the portfolio.