Multi Asset Strategy
Strategic asset allocation decisions are key to the success of investment management. This is the reason for multi-asset-strategies to take an increasingly important role in financial markets.
Balanced Risk/Return Profile
Seahawk Investments’ multi-asset-strategy is providing a balanced risk-return profile to its investors taking into account their specific investment objectives. The strategic asset allocation is of particular importance. A well thought-out strategic portfolio may lead to higher diversification benefits and a better risk-adjusted return in the long-run. Setting up multi-asset-portfolios requires long-term expertise within capital markets and in the area of risk management.
Seahawk Investments is tailoring investment portfolios on the basis of individual return expectations and risk budgets. The strategic asset allocation proposal is based on long-term return expectations and historical risk parameters of individual asset classes. Long-term-return expectations are calculated taking into account actual market data and historical patterns of macro-economic and risk premium data. A robust dividend-discount model is used to estimate long-run equity market returns. Fixed income asset class return estimates are based on historical real yield and spread patterns.
Institutional investors have individual investment objectives and restrictions. Mechanical standardised solutions often do not meet investors’ needs and lead to a lack of identification of the responsible portfolio manager which may lead to mediocre performance results. Individualised portfolios and solely responsible portfolio managers are a must in today’s challenging capital market environment.
Tactical allocation as a source of alpha
Given the low yield environment and high valuations in risky asset classes, active asset allocation decisions can add a significant added value to the portfolio’s returns. Institutional investors should take tactical opportunities to generate alpha. Tactical asset allocation decisions can be implemented within predefined investment limits in a very cost-efficient manner.
Flexible, controlled investment approach
A fast-changing capital market environment requires flexibility and quick action. As a flexible investment specialist, Seahawk Investments can act swiftly. Large asset managers often use team-based or committee-based investment decisions which are slow in implementation. At the risk management level, Seahawk uses the Bloomberg-Port risk management system. Bloomberg-Port measures risks at the individual securities and overall portfolio management level.