Productive long-term portfolio performance is driven by a combination of proper asset allocation and outstanding manager selection in both the traditional and alternative asset classes.
We believe that diversifying investments across asset classes will produce better risk-adjusted performance for the total portfolio. It is important to understand that every investment has risk, as there are factors that can cause any investment to lose value. While true diversification, or exposure to a wide range of independent risk factors, is difficult, it has the benefit of reducing a portfolio’s volatility while maintaining the expected return.
Unfortunately, as the worldwide markets have become more interconnected, an investor’s ability to diversify using publicly traded securities has been diminished. As a result, Fusion Capital has sought to diversify its portfolios by using Alternative Investments as a complement to the traditional asset classes. Hedge funds, private equity funds, real estate and one-off private equity transactions can provide the idiosyncratic risk characteristics that we find attractive and add critical diversification to a portfolio.
Fusion Capital seeks to identify and invest with talented managers in every asset class. It is our experience that many of the best managers, particularly in the Alternative Asset classes, work outside of the scope of the large investment institutions. While these managers are harder to source, they can provide great benefit to a portfolio. Fusion Capital’s investment platform is comprised of a growing team of talented managers who cover a diverse set of styles and strategies.