Investment Allocation

Emerald actively manages the portfolio to rebalance the allocations and specific weightings assigned to each theme and associated manager. We may also include dedicated short funds, single inverse ETFs or options to hedge the portfolio and potentially reduce volatility in times of perceived high market risk.

Our allocation process is two-fold: first, at the macro level to the particular global themes identified, and second, to the specific funds and/or ETFs chosen which best represents that theme. We employ an in-depth research process at the top level, followed by a comprehensive bottom-up diligence process with regard to manager selection.

Our investment team meets each week to discuss and review the global economic landscape, conditions regarding the themes in the portfolio and any necessary allocation adjustments by theme and/or underlying holding. While we are not compelled to maintain a hedge at all times, it is not unusual for us to hold some sort of dedicated short position, either through a simple inverse ETF, dedicated short fund, put option or some combination thereof. We recognize the importance of minimizing the downside during all different market environments, and we believe it is critical to have the flexibility to hedge the portfolio when we feel necessary.