Global Risk Experts
Alternative & Traditional Assets, Hedge Funds & Risk Management
Schmidt Research Partners Limited is authorised and regulated by the Financial Services Authority (452684).
Copyright Schmidt Research
Partners Limited 2005-2010.
We focus on two issues: finding outstanding, stable long-term investment opportunities and avoiding bad investments, i.e. disasters
such as highly leveraged funds, illquid investments and fraudulous managers.
Our Research Approach
Forward Looking Analysis
aim is to assign ratings to hedge funds which will continue to produce good performance and have the potential to grow. The analyst
is generally faced with a timing issue, identifying the potential or risk in an investment opportunity. We believe that our analysis
covers both past / present as well as the future.
We focus on indicators that are leading rather than lagging. Examples for
our leading indicator analysis are:
Global trends in macro economics
Markets forecasts of spreads, margins, ratios
Strategies alpha potential analysis forecast
HF industry outlook inflows / outflows
HF Firm plans
HF inflows outflows
Rating and Research Approach
We analyse funds based on full due diligence on- and
off-site. The methodology was developed by Jacob H Schmidt in late 1990s and has been employed by Schmidt Research Partners in
its advisory, rating, training and consulting work.
Schmidts Three Pillar Approach:
Analysis of Firm
Performance and Risk Assessment
The resaerch approach is holistic: the three pillars interact and influence each
Each Pillar is assessed separately and awarded an A if appropriate, rating of fund is sum of parts (A to AAA Rating).