INVESTMENT MANAGEMENT

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What We Do

Our actively managed strategies and customized investor solutions seek to generate market outperformance, or alpha, that is uncorrelated to broad market swings and primarily invest in highly liquid instruments for shorter time horizons to preserve liquidity and price discovery for our clients.

How We Are Unique

We recognize the future of investment management as one that is systematic, in that it takes a scientific approach to investing and trading. With that in mind our decision-making is built on a foundation of quantitative models + methods-based idea generation and rules-based investment processes.

Why Hercules?

Credit-fueled growth in all significant economies globally has led to volatile markets. We now face the real prospect of another financial crisis among recessions in the foreseeable future, although its timing is uncertain. It is our goal to provide our clients with all-weather strategies that outperform in most market environments. With that in mind we have chosen to emphasize liquid strategies and product-set.

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Key Strengths

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Institutional Quality

We provide institutional quality investment services with sophistication achievable only at top institutional managers, while ensuring our extent and quality of client servicing far exceeds the level offered by our peers.

Differentiated Strategies

Hercules’ investment strategies and solutions are actively managed to generate outperformance in markets with high liquidity and transparency and with instruments that allow for shorter trade horizons.

Rules-Based Process and Execution

We have a periodic process of budgeting for our trade exposures to different risk factors and a post-hoc analysis of realized portfolio performance with attribution of returns to drivers of investment return. Our rules-based trading takes the subjectivity and individual behavior out of the process, minimizing the scope for errors.

All-Weather Performance

Our investment style ensures the investment performance from our strategies have low correlation to broad equity markets and sustain market down-cycles with little or no portfolio drawdowns.

Cutting Edge Research and Systems

Hercules’ research and analytics reflects the decades of experience and skill-set of our research team. We take a regular and methodical approach to challenge and incrementally improve upon our investment and research platforms to ensure the most current best-practices are adhered to.

Models-Based Idea Generation

We take a systematic, data and model driven approach to investing, and it allows us to multiply the purview of our markets with greater ease and precision, and significantly cut down decision-making time.

Personalized Client Attention

Providing a level and quality of client service and access unavailable at out peers in the industry is a key objective for us. Our industry benchmarked GIPS compliant performance reporting is a little example of the highest standards we seek to deliver.

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Portfolios

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Hercules Systematic Volatility Portfolio

The Hercules SV portfolio strategy seeks to generate alpha utilizing domestic, index-linked securities by leveraging internally developed algorithm-based trading models and a rules-based investment process. The portfolio aims to produce risk-hedged, excess return with low correlation to broad market indices and makes the strategy ideally suited as an overlay.

Thematic Hedged Long/Short Portfolios

Hercules thematic portfolio strategies utilize a multi-factor quantitative approach for the selection of long and short positions in global equities and their indices. A factor-based analysis validates the drivers of dividend quality, sustainability and persistency as well as market price performance. Factors are based on fundamental information and market technicals. The portfolios aim to produce risk-hedged, excess return by additionally deploying an equity market volatility timing model to immunize the portfolios from downside market exposure.