Arden's core investment process is characterized by selecting managers that can add value and selecting strategies that are largely non-directional in nature. This process utilizes a detailed bottom-up manager analysis by the Research, Risk and Operational Due Diligence teams combined with a top-down strategic allocation by Arden's Investment Committee to construct tightly risk-controlled portfolios. The Investment Committee serves as Arden's investment decision-making body, with responsibility for developing, maintaining and overseeing the five elements of Arden's investment process: (1) top-down strategy analysis and review, (2) sourcing and selection of underlying funds, (3) due diligence of underlying funds, (4) construction of fund and registered fund investment portfolios, and (5) continuous monitoring and risk management of underlying funds and fund and registered fund portfolios.

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• Top-Down Strategy Analysis & Review
  • Arden's Research team develops and analyzes forward-looking global economic and strategy scenarios
  • Our proprietary market research and analysis contributes to the dynamic process of identifying investment opportunities and risks
  • Portfolio weightings are determined based on top-down investment opportunity sets by incorporating forward-looking strategy drivers using minimum/maximum allocation ranges and risk constraints


• Manager Sourcing & Selection
  • A criteria-based qualitative/quantitative screening process is employed to identify world-class managers with verifiable track record and repeatable investment processes
  • Arden's strategy-focused manager Research team is responsible for identifying managers offering the most favorable risk / return profile within each strategy
  • The team sources new investments through proprietary channels and investor and industry relationships to achieve  strategy allocation objectives


• Due Diligence
  • Manager Research
    • Arden's experienced coverage team conducts independent investment review of manager prospects
    • Managers and their investment teams are evaluated by skill/acumen, investment philosophy, investment process, portfolio construction capabilities, and success relative to manager peer group
  • Risk
    • Arden's dedicated risk analytics team conducts full risk due diligence on all new and existing managers analyzing overall risk, portfolio risk, risk environment, portfolio concentration, liquidity and complexity
    • The due diligence process identifies and qualifies a fund's risk management controls and procedures, relative to the portfolio characteristics and sensitivities, taking into consideration potential asset/liability mismatches
    • This process is guided by a comprehensive framework of key risk drivers and risk management best practices that is continuously updated and refined
  • Operational
    • Arden's operational due diligence team performs comprehensive reviews of infrastructure, third-party administration, valuation and all service providers including:
      • Review of all legal documentation
      • Background checks on key individuals using specialist third-party service providers
      • Assessment of fund service providers
      • Fund administrators
      • Valuation consultants
      • Prime brokers and ISDA counterparties
      • IT / software providers
    • The team also conducts rigorous assessment of business integrity, compliance and regulatory adherence


• Portfolio Construction
  • Portfolios are constructed and rebalanced utilizing top-down guidelines and fully vetted managers to deliver targeted portfolio risk/reward characteristics
  • A consistent portfolio construction methodology is applied generating effective, broadly defined diversification


• Continuous Monitoring & Risk Assessment
  • Once a portfolio has been constructed it is vital to continuously monitor and assess its risk
  • Portfolio concentration levels and positions are monitored and rebalanced appropriately
  • Our three distinct and continuous due diligence functions conduct multiple, parallel dialogues and lines of communication with each manager that results in a high quality of information flow