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Boothbay Fund Management - Best Multi-Strategy Fund

This report has been originally published on hedgeweek.com.

Boothbay Fund Management LLC, is the investment manager for the firm’s flagship fund, a global multi-strategy hedge fund established by Ari Glass in 2014. The Fund seeks to generate strong risk-adjusted returns by allocating capital to idiosyncratic strategies that have minimal correlation to each other and traditional asset classes. 

The Fund combines the risk management and investment principals of the large well-known multi-manager hedge funds while also taking advantage of its smaller relative size and investing in niche and less-crowded strategies.

Boothbay has three major components to its strategy and portfolio. First is a ‘traditional’ multi-strategy aspect, which utilises daily data, to determine manager selection and sizing, and then use the lack of correlations amongst the underlying strategies, to create a portfolio that can generate the return benefits of leverage without the linear increase in risk normally associated with leverage. 

Second, the firm manages a “First Loss” platform, whereby the managers absorb the first 10 per cent of trading losses. Third, it seeks to combine a mixture of niche and capacity constrained uncorrelated strategies that have become an increasingly larger part of the portfolio.

According to Frederick Richardson, who runs business development for Boothbay: “We believe many of the best risk adjusted opportunities are capacity constrained, which keeps them from being fully exploited by many larger funds who would have the platform to do so.

”To successfully implement this approach, Boothbay had to build out an infrastructure that can handle sourcing of talent, evaluation and diligence, portfolio construction, dynamic risk management, and a robust back office to support it all. “With over 80 strategies it is a significant undertaking,” says Richardson.

Shane Burn, a former statistical arbitrage portfolio manager and hedge fund allocator, heads up quantitative and volatility based strategies for Boothbay. 

Glass, Boothbay’s managing member, leverages his previous experience at Soros-seeded Tiger cub, Intrepid Capital, to select fundamental long/short managers. In 2016, Boothbay brought on Peter Bremberg as their Chief Operating Officer to oversee financial operations and help the firm optimise its balance sheet.

To date, Boothbay has achieved risk adjusted returns in the upper echelons in the industry with a Sharpe ratio of higher than two and a Sortino ratio close to 10. They have done so by outperformed many of its multi-strategy peers on an absolute return basis, while also having significantly lower drawdowns.

On winning this year’s award Glass remarks: “This award is really as a result of a consistent team effort. With so many moving parts, it is important we keep a cohesive team. We are proud of the fact that we have not lost a key employee since the inception of the Fund. Our goal is to continue to satisfy our investors’ needs and protect their capital.”

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Ari Glass on the new Bitcoin - Ethereum

Digital currencies are regarded revolutionary because they're based on blockchain, a publicly available database of transactions. Ari Glass, a longterm investor and funds manager says that this provides an additional level security and transparency, not even to the cryptocurrency, but also to the network they are present. 

Now, experts believe that by by 2021 cryptocurrencies will start shaping the technological and economic trends and will transform entire industries across the world. According to Glass, blockchain will make up 10% of the world's GDP. This means by 2025 the total market capitalization will be $10.1 trillion.

Regardless of what will happen in the next five years, one thing is for sure: blockchain technologies and cryptocurrencies are here to stay! Even if world governments don’t to go cashless in the age of these digital currencies, the rise of these cryptocurrencies, Ethereum in particular, should continue to see steady usage and payment growth.

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Ari Glass recently became an expert

Ari Glass is New York hedge funder with years of experience under his belt. His impressive portfolio encompasses the variety of interests and skills that he possesses. As the founding partner and managing member of Boothbay he is responsible for the overall construction and allocations, and at the same time he manages the Investment Team and oversees the business development and manager sourcing process.

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Ari Glass Breaks Downs the Most Common Misconceptions about Alternative Investments

Alternative investment assets represent classes that differ from the conventional investment types, stocks, bonds and cash. Broadly speaking, Ari Glass, a fund manager with a thriving career, describes alternative investments as complex assets outside the realm of traditional stocks, bonds or cash, which are more difficult to value. In recent years alternative investments, have gained popularity among financial professionals like Mr. Glass. Because of their complex nature and limited regulations, most alternative investment assets are held by institutional investors or high-net-worth individuals.

Since alternative investments tend to behave differently than typical bond and investments, Ari Glass realized that by adding them to his portfolio he may enhance returns, reduce risk and provide broader diversification. There are many investment vehicles that can add value to a portfolio, and not all of them need to be financial investment assets.  This has helped alternative funds grow in popularity and provide high returns and high yields, even though sometimes at a steep price. Alternative investments can also be extremely helpful in providing balance to a portfolio. With that being said, Glass points out that alternatives aren’t meant to replace an entire portfolio, but rather to enhance it.  For example, when stocks and bonds drop, alternative assets may rise.

In today’s modern financial markets, alternative investments represent an essential category of investments. They also have a positive effect at all levels of economic development, especially in the context of changes in the environment and the financial system. The volume of alternative investments is largely determined by capital flows. From his personal experience, New York-based fund manager Ari Glass has learned that alternatives are investments with a solid return, which can protect an investment portfolio at a time of stock market breakdown.

While markets are becoming more unpredictable, investors continue to seek assets that are not linked to the daily market pricing variations. Nowadays it is more difficult than any time before to rely solely on trading stocks and bonds in order to build a diversified portfolio since global economies are more connected than ever. Financial experts including Mr. Glass have agreed that adding alternatives to your portfolio can not only provide an opportunity for broader diversification, but it can also reduce risk and even enhance returns.

From Ari Glass' longstanding experience with investment funds, alternative investing is a great way to meet your desired goals, provided that you have a well-developed strategy. Alternatives are lucrative asset classes which are getting more and more popular, exploring new and ever-expanding options. Today, alternative investments make up a growing $7 trillion industry. May people managed to find greater stability in sectors that are not stock market-dependent, through alternatives, rather than investing in the old-fashioned traditional products.