What Is a Multi-Strategy Fund of Hedge Funds? Inside the Abacorum Approach
An investor who wants exposure to hedge funds faces a practical problem before any investment decision is made. There are thousands of managers. Most are hard to access, hard to compare, and hard to monitor once you are invested. Committing to one manager concentrates the outcome on one team's judgement.
Among alternative investment funds, the structure built to solve this is the fund of hedge funds — a single vehicle that invests in a portfolio of underlying managers rather than in securities directly. This article explains how a multi-strategy fund of hedge funds works in practice, using the Abacorum Fund, managed by AQUIS Capital in Zurich, as a worked example.
The example in brief
Key facts | Detail |
|---|---|
Fund name | AltAlpha SICAV – Abacorum Fund |
Fund type | Multi-strategy fund of hedge funds |
Investment manager | AQUIS Capital, Zurich, Switzerland |
Target return | Approx. 7–9% p.a. over 3–5 years (target, not guaranteed) |
Volatility profile | Low to medium |
Liquidity | Monthly subscription and redemption |
Share classes | USD, EUR, CHF |
Minimum investment (Class B) | USD 100,000 or equivalent |
What is a multi-strategy fund of hedge funds?
A fund of hedge funds is a single vehicle that invests in a portfolio of underlying hedge fund managers rather than directly in securities. Multi-strategy means that capital is spread across several distinct hedge fund strategies instead of relying on one approach.
A multi strategy hedge fund of this type is sometimes also described as a multi manager hedge fund, because the return depends on the selection of managers rather than on one in-house trading desk. For an investor, the practical effect is access and diversification in one allocation. Instead of selecting, negotiating with and monitoring individual managers, the investor holds one position, and the manager research, due diligence and portfolio construction are handled by the investment team. The Abacorum Fund applies this structure across both established institutional managers and specialised niche managers.
Which hedge fund strategies does such a portfolio hold?
The fund allocates capital across a diversified range of liquid hedge fund strategies. The investment universe spans multiple asset classes and geographies.
Strategy | Role in the portfolio |
|---|---|
Long/Short Equity | Equity exposure with the ability to position both long and short |
Long/Short Credit | Credit exposure across the capital structure, long and short |
Global Macro | Positions across currencies, rates, equities and commodities |
Event Driven | Returns linked to corporate events rather than market direction |
Relative Value | Pricing differences between related instruments |
Systematic Trading | Rules-based, model-driven strategies |
Combining these approaches allows the portfolio to access different drivers of return while reducing dependence on any single investment style or market environment. The team seeks managers with complementary return profiles to build a resilient all-weather portfolio.
What do these funds aim to deliver?
The primary objective is to deliver stable risk-adjusted returns while preserving capital across a variety of market cycles. The fund targets annualised returns of approximately 7–9% over a three to five year investment horizon, while maintaining a low to medium volatility profile.
Through diversification across hedge fund strategies and underlying managers, the fund aims to provide attractive risk-adjusted returns with low correlation to traditional equity and fixed-income markets. These are targets, not guarantees: they may not be achieved, returns can be negative, and capital is at risk.
Diversification across strategies and managers is intended to reduce dependence on any single source of return — it does not eliminate the risk of loss.
How are the underlying managers selected?
AQUIS Capital follows a systematic and disciplined investment process focused on identifying high-quality hedge fund managers with sustainable investment processes and attractive risk-adjusted return characteristics.
Potential managers undergo extensive investment and operational due diligence before inclusion in the portfolio. The investment team then continuously monitors underlying managers, portfolio exposures, liquidity terms and evolving market conditions to ensure the portfolio remains diversified and aligned with its long-term objectives.
The process combines top-down portfolio construction with bottom-up manager selection. Allocation decisions are driven by the team's assessment of opportunity sets, risk-adjusted return potential and diversification benefits, with a focus on diversified sources of alpha and limited concentration risk.
How is risk managed?
Risk management is integrated throughout the investment process rather than applied as a separate step. The fund seeks to control risk through:
- Diversification across managers, strategies and geographies
- Continuous monitoring of portfolio exposures
- Assessment of liquidity and redemption terms
- Ongoing operational due diligence on underlying managers
- Portfolio construction focused on reducing concentration risk
The investment team aims to maintain a portfolio with low correlation to traditional asset classes while prioritising capital preservation during periods of market stress. Alternative investment strategies carry risks including manager risk, liquidity risk and the use of leverage and derivatives by underlying managers.
What are the subscription and redemption terms?
The fund offers monthly liquidity while maintaining exposure to a diversified portfolio of alternative investment strategies.
Term | Detail |
|---|---|
Subscription frequency | Monthly |
Subscription notice period | 1 business day |
Redemption frequency | Monthly |
Redemption notice period | 15 business days |
Share classes available | USD, EUR and CHF |
Minimum investment (Class B) | USD 100,000 or equivalent |
Minimum additional investment | USD 10,000 |
Please refer to the Offering Documents for complete terms and conditions. Terms may change; the Offering Memorandum and Offering Supplement prevail over any summary on this page.
Who manages the Abacorum Fund?
The Abacorum Fund is managed by AQUIS Capital, a specialised active asset manager headquartered in Zurich, Switzerland. Switzerland's long-established alternative investment industry means a Zurich hedge fund manager sits close to the institutional investor base it serves.
The firm serves institutional investors, family offices, banks and external asset managers across a range of traditional and alternative investment solutions. The investment team combines extensive experience in asset allocation, manager selection and alternative investments. For the Abacorum Fund, AQUIS Capital applies its manager research capabilities and due diligence framework to construct and manage a diversified portfolio of hedge fund investments.
More on the firm and the people behind it: about AQUIS Capital, the investment team, and the full fund range.
What information should an investor ask for?
The following documents are available on request or through the investor section of the website:
- Monthly Factsheets
- Monthly Comments
- Offering Memorandum
- Offering Supplement
- Due Diligence Questionnaire
Full details of the fund are on its dedicated page: AltAlpha SICAV – Abacorum Fund. For further information, please contact AQUIS Capital. To understand how regulated alternative strategies work more broadly, see our overview of liquid alternatives in Europe.
Frequently asked questions
What is a fund of hedge funds?
It is a fund that invests in a portfolio of underlying hedge fund managers rather than directly in securities. The investor gets diversified access to several managers and strategies through a single investment, with manager selection and monitoring handled by the investment team.
What return does the Abacorum Fund target?
The fund targets annualised returns of approximately 7–9% over a three to five year horizon, with a low to medium volatility profile. This is a target, not a guarantee — it may not be achieved and capital is at risk.
Which strategies does the fund use?
Long/Short Equity, Long/Short Credit, Global Macro, Event Driven, Relative Value and Systematic Trading strategies, diversified across asset classes and geographies.
How liquid is the investment?
Subscriptions and redemptions are monthly. The subscription notice period is 1 business day and the redemption notice period is 15 business days.
What is the minimum investment?
The minimum initial investment for Class B is USD 100,000 or the equivalent in another share class currency. The minimum additional investment is USD 10,000. Share classes are available in USD, EUR and CHF.
How does this differ from a single absolute return fund?
A single fund runs one manager's process. A fund of hedge funds spreads capital across several managers and strategies, so performance depends on the combination rather than on one team. Both approaches aim for returns with low correlation to traditional markets; the difference is the number of decision-makers behind the result.
Who can invest in the fund?
AQUIS Capital serves institutional investors, family offices, banks and external asset managers. Eligibility and availability are set out in the Offering Documents — please contact AQUIS Capital to confirm.
This page is for general information only and does not constitute financial, investment, tax or legal advice, nor an offer or solicitation to buy or sell any financial instrument. Alternative investments carry risk, including the possible loss of capital. Target returns are not guaranteed and past performance is not a reliable indicator of future results. Any investment decision should be based solely on the fund's Offering Documents. Consult a licensed professional before investing.
