We define “event driven” as strategies seeking to profit from investments in companies experiencing a material change in their ownership or capital structure.

• The opportunity set includes investing in stocks undergoing mergers, as well as investing in companies engaging in spin-offs, divestitures, major stock or debt repurchases, and other key events in the corporate life-cycle
• One of the hallmarks of event driven strategies is habitat rotation, which describes how owners of a stock (typically fundamental investors) will seek to quickly reduce their ownership position due to a corporate event. Event driven investors who are willing to accumulate shares during this habitat rotation are often able to earn a positive risk premia
• Our HRP focus is to efficiently extract the risk premia associated with event driven strategies

We define “long-short” as strategies seeking to profit by buying stocks (or other instruments) deemed to be attractive on various bases (e.g., fundamental), and shorting stocks (or other instruments) deemed to be unattractive.

• The opportunity set includes investing (long or short) in stocks, debt, and other instruments
• The strategies are also underpinned by human behavioral biases and market structural constraints that tend to cause investors to under-appreciate an instrument’s quality and value characteristics
• Our HRP focus is to efficiently extract the risk premia associated with fundamental long-short investing

We define “relative value” as strategies seeking to profit from the relative mispricing of related assets.

• The opportunity set includes the relationship of different instruments related to a single issuer as well as the trading relationship of instruments of multiple issuers
• Relative value strategies can be implemented across the opportunity set via a quantitative approach, focusing on theoretical and historical pricing relationships
• Our HRP focus is to efficiently extract the risk premia associated with these strategies

We define “quantitative” as those strategies seeking to profit from statistical anomalies.

• The opportunity set includes investing (long or short) in stocks, futures, and other instruments
• Human behavioral biases and market structural constraints often combine to generate anomalies, which quantitative investors can spot and take advantage of
• Our HRP focus is to efficiently extract the risk premia associated with quantitative strategies
• Our HRP quantitative strategies currently include systematic equity mean reversion and systematic trend / counter trend