Services
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
 
Our 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 – vision
• 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.
 
Schmidt’s Three Pillar Approach:
 

• Analysis of Firm
• Analysis of Fund
• Performance and Risk Assessment
 
The resaerch approach is holistic: the three pillars interact and influence each other. 
 
Each Pillar is assessed separately and awarded an A if appropriate, rating of fund is sum of parts (A to AAA Rating). 
 
 
 
 
 
Research Approach
Advisory
Rating
Training
Consulting
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