ASX-listed HFA Holdings Limited (ASX: HFA) is the Australian parent of Lighthouse Investment Partners, LLC.
Lighthouse Investment Partners, LLC
Lighthouse Investment Partners, LLC (Lighthouse) is an investment manager dedicated to managing multi-manager hedge fund portfolios to achieve diversification, low -volatility of investment performance and absolute returns.
Lighthouse manages both pooled investment funds and customised client portfolios for an investor base that spans North America, Europe and Asia and includes high net worth individuals, family offices, endowments, foundations, trusts, investment banks, benefit plans, pension funds, healthcare and insurance companies.
Lighthouse has developed two business lines, each of which utilise its proprietary managed account program to underpin their operation:
Lighthouse Managed Accounts
Lighthouse believes that the most effective way to achieve diversification from traditional markets is through exposure to intelligently and actively managed portfolios of hedge funds. Lighthouse’s overall objective is to crate and deliver innovative solutions that compound investor capital.
Lighthouse manages a number of multi-strategy and strategy-focused funds. The funds utilise Lighthouse’s proprietary managed account program as an integral part of the investment process. Under the managed account program, Lighthouse Funds own the assets and set predetermined guidelines for appointed investment managers to comply with managing their allocated portion of fund portfolios. Lighthouse believes that the managed account structure provides the following benefits within their managed funds:
- transparency into asset positions
- vast amounts of daily data to allow timely risk management and monitoring of external managers
- enhanced control and security of assets
- investment flexibility
- administrative cost savings
- overall improved liquidity compared to traditional fund-of-fund structures.
All of these benefits significantly improve the investment process and allow Lighthouse to better monitor the investment strategies of their funds.
Customised Client Solutions
The development of the managed account program for Lighthouse’s own pooled funds created a new opportunity for Lighthouse to develop a customised client solutions business.
This business offers investors, who are able to commit to a significant investment size, the ability to access the benefits of the managed account structure in the own customised portfolio. Lighthouse is able to work closely with large strategic investors to customise their alternative investment exposure and meet specific needs across middle office, risk monitoring and investment advisory services. Investors can choose some or all of the available services, depending on their own requirements, and fees are structured accordingly.
Certitude Global Investments Limited
On 31 March 2015, HFA announced the sale of its wholly-owned Australian subsidiary, Certitude Global Investment Limited (Certitude). The sale successfully completed on 30 April 2015, and from that date Certitude is owned by Ironbark Asset Management Pty Ltd and is no longer a member of the HFA Group.