FCM has developed a style of hedge fund management built on a foundation of risk diversification, careful manager selection and ongoing risk management and control. FCM utilizes risk allocation tools, many proprietary, to construct and manage a portfolio resilient to market volatility. Every effort is designed to maximize return on risk and thereby enhance risk-adjusted returns of the portfolio. The management style is intended to emphasize risk allocations to hedge fund strategies with the best expected prospects for non-correlated risk-adjusted performance.

Portfolio construction starts with a top-down process designed to create a stable volatility of 2% per annum.  FCM achieves this via multiple hedge fund Strategy Buckets selected for diversification value, relative correlation, risk stability and liquidity. Buckets and managers are monitored for consistency via a suite of proprietary risk analytics.

Managers are weighted based upon their volatility, correlation to the portfolio and strategy bucket, and risk-adjusted return represented by their Sharpe Ratio. FCM allocates and de-allocates to managers based upon the combination of quantitative analytics and qualitative judgment.