Diverse Offerings Across the Strategy Spectrum

Hedge fund managers employ a broad range of tactics across asset classes with a goal of delivering favorable risk-return outcomes. Including hedge funds in a diversified portfolio may increase returns and/or reduce portfolio volatility. iCapital offers access to a variety of single and multi-strategy hedge funds investing in multiple asset classes globally.

EQUITY HEDGE

Equity hedge funds invest long and short in equity and equity derivative securities. Different approaches utilize fundamental or quantitative analysis, and vary in terms of market exposure, region, sector, and market capitalization. Advisors may consider equity hedge as a way to access returns from global equity markets, potentially with less downside risk given the hedged nature of most funds.

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EVENT-DRIVEN / CREDIT

Event-driven funds focus on companies involved in corporate transactions like balance sheet restructurings, recapitalizations, shareholder buybacks, and other capital structure adjustments. Event-driven funds often combine exposure to equity and credit markets with catalyst-driven, company-specific events, with performance driven by a particular transaction, providing idiosyncratic return potential for advisors and clients.

MACRO (DISCRETIONARY/SYSTEMATIC)

Macro funds trade a broad range of securities including equities, credits, rates, currencies, commodities, and derivatives across global markets. Discretionary macro focuses on broad market activity, monetary policy, geopolitical, or macroeconomic changes. Systematic macro utilizes computer-generated trading signals to identify pricing inefficiencies, from intraday to multiple months. Macro investing can offer non-correlated returns when compared to long-only equity and fixed income.

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RELATIVE VALUE ARBITRAGE

Relative value arbitrage focuses on discrepancies between securities across global equity, credit, and fixed income markets. Typically, equity and credit-based strategies, such as relative value equity, convertible bond, and capital structure arbitrage utilize fundamental analysis. Fixed income relative value often utilizes quantitative analysis to develop a broader investment thesis. Relative value funds can benefit when markets exhibit higher volatility, leading to the spread (or relative value) of different securities widening and narrowing, which creates non-directional, return-generating opportunities.

MULTI-STRATEGY

Multi-strategy funds invest opportunistically across equity hedge, event driven, macro, and relative value. These funds often have a centralized risk management discipline across their entire investment team – many employ multiple teams, investing in numerous sub-strategies – and can benefit from tactical and strategic asset allocation shifts as market opportunities change over time. Multi-strategy funds may offer advisors multi-layered diversification, performance consistency, moderate volatility, and comparatively low beta, or sensitivity to traditional asset classes.

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This material is provided for informational purposes only and is not intended as, and may not be relied on in any manner as legal, tax or investment advice, a recommendation, or as an offer to sell, a solicitation of an offer to purchase or a recommendation of any interest in any fund or security offered by Institutional Capital Network, Inc. or its affiliates (together “iCapital”). Alternative investments are complex, speculative investment vehicles and are not suitable for all investors. This material does not intend to address the financial objectives, situation or specific needs of any individual investor. The information contained herein is subject to change and is also incomplete. This industry information and its importance is an opinion only and should not be relied upon as the only important information available. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed, and iCapital assumes no liability for the information provided.

This material is confidential, is the property of iCapital and may not be shared without the written permission of iCapital. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of iCapital.

Products offered by iCapital are typically private placements that are sold only to qualified clients of iCapital through transactions that are exempt from registration under the Securities Act of 1933 pursuant to Rule 506(b) of Regulation D promulgated thereunder (“Private Placements”). An investment in any product issued pursuant to a Private Placement, such as the funds described, entails a high degree of risk and no assurance can be given that any alternative investment fund’s investment objectives will be achieved or that investors will receive a return of their capital. Further, such investments are not subject to the same levels of regulatory scrutiny as publicly listed investments, and as a result, investors may have access to significantly less information than they can access with respect to publicly listed investments. Prospective investors should also note that investments in the products described involve long lock-ups and do not provide investors with liquidity.

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