Our Approach to Hedge Fund Investing
Seeded by the Eccles family, Cynosure Strategies employs an absolute return-oriented global equity long-short strategy that seeks to generate attractive and consistent total returns through varying market environments while managing downside risk.A portfolio of uncorrelated, systematic return drivers
Our portfolio features diversified positions across major global equity markets with hedges that are intended to provide downside protection. We seek to avoid heavy issuer, sector, and geographic concentration and to maintain exposure across a broad set of return drivers. Our Global Equity Long-Short strategy aims to generate attractive risk-adjusted returns, maintain low correlation to major stock and bond markets, and add diversification in multi-asset portfolios.
Seeking low correlation to stock and bond markets
The strategy is designed to provide differentiated exposure versus traditional equity, credit, and duration risk factors, with the goal of helping investors enhance portfolio diversification over time.
Equity-like return potential
This strategy is intended to complement investors’ portfolio allocations by seeking potential return and diversification benefits while managing volatility.
Downside risk management
The strategy holds a diversified portfolio of long and short positions as part of its effort to manage downside risk while limiting the depth and duration of drawdowns.
Low correlation to stock and bond markets
Most investors have significant exposure to equity, credit and duration risk factors. Our design is to be a pure source of alpha that's uncorrelated with major beta drivers in an effort to help our investors achieve better overall returns with lower volatility.
Equity-like returns
Our approach is intended to complement our investors' portfolio allocations. Our strategy is calibrated to move enough that it delivers meaningful diversification benefits but not so much that it introduces unwanted volatility.
Minimal drawdowns
We maintain a large number of uncorrelated and positively-convex positions with upside potential that exceeds their perceived risk of loss. This feature aims to keep the depth and duration of drawdowns to a minimum even as the strategy targets outsized returns.
Recognized Expertise
Brian Smedley is a Managing Director and Head of Cynosure Strategies. He manages the firm's hedge fund investment portfolio as the Chief Investment Officer. He previously held senior positions at Guggenheim Investments, Bank of America and the Federal Reserve Bank of New York.
Randal Quarles is the Chairman and Co-Founder of The Cynosure Group. Prior to forming Cynosure in 2014, he spent many years as a partner at the Carlyle Group and held senior financial policy positions in four different presidential administrations. He served most recently as Vice Chair for Supervision of the Federal Reserve Board of Governors.
