Screening

 

EMES' fund screening process is our primary risk control and something we take very seriously. We begin by narrowing our focus to only transparent strategies with ample liquidity. We then look for managers who have displayed prudent risk control and consistent alpha generation. We aren't rigid in our requirements, but we've learned that we do well to keep our exceptions exceptional.

EMES sticks to conventional strategies where assets are liquid and pricing is efficient, like events, relative value, low net long/short, macro, and multi-strategy. We generally avoid investments where valuations are marked by model or off-market.

EMES’ own products generally have 30-90 day liquidity and we look for funds with similar terms. While we may invest in strategies with penalties for early redemption, we try to avoid hard lockups or investor level gates.

EMES manages its investments prudently and wants to partner with managers who focus on capital preservation and risk control. EMES looks for a Sharpe greater than 0.75 and generally steers clear of funds with peak-to-trough drawdowns greater than 15%.

EMES prefers a three-year track record for a manager or team, whether that’s in the current fund or carried from previous work. We look for a pedigree showing strong intellect, consistently accurate judgement, a drive to succeed, and unquestioned integrity.