Drake Capital Advisors applies a proven, repeatable process to source investments and manage portfolios of hedge funds. We evaluate several hundred managers a year and perform in-depth due diligence which is both thorough and flexible, resulting in documented investment decisions.
We continuously search for managers with a discernible and sustainable investment edge, with an emphasis on smaller managers. We maintain regular contact with managers of top-performing funds – both those with whom we are currently invested and those we are interested in tracking – in order to stay ahead of our peers in the event of new fund formations or the reopening of a previously closed fund.
Our process enables our team to analyze a manager’s strategy, experience, organization and performance in order to assess the manager’s potential to contribute positively to Drake Capital portfolios. This process requires thoughtful and detailed preparation. We employ a range of proprietary quantitative and qualitative tools, drawing on decades of collective experience and information.
A critical component of our due diligence process is reference-checking and triangulation of information. We conduct extensive reference reviews on key fund personnel, drawing on a wide array of contacts within the investment community.
Our operations team conducts a separate, detailed review of back office controls, procedures, infrastructure and documentation and has the authority to veto a prospective investment or recommend an exit from an existing investment.
We actively monitor the risk and opportunity for each manager investment and the overall risk and opportunity of Drake Capital portfolios.