Investment Process

EnTrustPermal offers investment solutions through customized portfolios, co-investments, direct investments and established funds across alternative strategies including diversified, strategy focused and opportunistic. EnTrustPermal has distinct teams that are responsible for investment research, operational due diligence and risk management.
EnTrustPermal has a rigorous due diligence process to select independent investment managers, relying on quantitative and qualitative tools. Investment Research focuses on various strategies including Global Macro, Credit, Fixed Income, Event Driven, Equity, Activist and Liquid Alternatives. Given EnTrustPermal’s deep relationships with managers across the globe and our reputation as an experienced investment partner for high-conviction ideas, EnTrustPermal may source bespoke opportunities that are not available to outside investors.
EnTrustPermal has a robust process for providing clients with highly customized solutions for all of their alternative hedge fund investment needs. Working together with clients, EnTrustPermal helps define investment objectives and guidelines, assesses risk and return objectives, liquidity parameters, guidelines on strategy exposures and manager concentration, preferred legal structure and governance, and fee structure. EnTrustPermal helps advance the unique goals of our clients by creating dynamic portfolios while providing ongoing monitoring and reporting.
Risk management is an integral part of manager selection and monitoring. EnTrustPermal utilizes a proprietary analytical risk monitoring system to monitor risk on both the individual manager level and broader portfolio level. EnTrustPermal’s risk management process includes constant communication with underlying managters and daily monitoring and analysis of material positions in the portfolio.
EnTrustPermal conducts thorough and robust operational due diligence on all managers to identify potential non-investment risks, including on-site diligence meetings with key personnel and in depth analysis of processes and controls. Utilizing a proprietary scoring system, EnTrustPermal performs ongoing monitoring of invested and potential managers, including a review of company structure, portfolio characteristics, pricing, trading, execution, risk management, service providers and business continuity.