A Danish institutional investor is preparing to allocate €10-15 million to a multi-strategy fund of hedge funds. The mandate will be awarded to a single manager and is designed to provide diversified exposure across at least five different strategies. The investment aims for an absolute return of risk-free plus 2-4 percent net of fees, with a target volatility of 4-7 percent and minimal correlation to equities and fixed income.
Mandate details
- Absolute return target: Risk Free + 2-4%, Net
- Style: Multi-Strategy solution with a balanced risk profile
- Minimum 5 different strategies
- Target volatility of 4-7%
- Correlation to equities and fixed income close to zero
- 12-month rolling drawdowns should be less than -20% (Soft)
- Investment Space: Liquid assets. No private investments in the strategy
Minimum requirements
- Track Record: Minimum 5 years within the proposed strategy (hard restriction).
- Minimum strategy/composite AuM: $750m (Soft)
Other criteria
- Liquidity: Preferably monthly, quarterly accepted.
- Leverage constraints: Preferably unlevered share class (Soft)
- Reporting: Monthly/quarterly review of performance and attribution across strategy buckets (for multi-strategy).
- Competitive fee level and TER are important
ESG
- ESG: Signatory to UN GC. Ambitious ESG integration is viewed positively in the selection process.
- UN PRI Signatory: Please disclose signatory status
- SFDR classification: Please disclose which article the fund is. Article 8 preferred.
- Exclusion Policy for the strategy – please attach your exclusion policy if you have it.
Investment vehicle
- Fund/Pooled vehicle, e.g. UCITS, AIF, etc.
- No European Union tax haven blacklisted countries where the vehicles are incorporated.
- “Traded via Nordic banks” + question
Process outline
- Shortlisting/Implementation during 2025 (Indicative)
Performance data
- Preference for EUR hedged (Gross of fees)
- USD (unhedged) is also accepted.
Deadline
October 14, 2025 (Cut-off: Midnight CET, Expiry date inclusive)
Questions?
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