Prisma’s investment philosophy is to invest in a broadly diversified group of alternative investment managers across multiple strategies and asset classes. We seek to identify best-in-class managers within their style specialty and use those managers to build portfolios that meet the risk, return and correlation constraints of our clients.
We believe that it is possible, through rigorous manager selection and portfolio construction, to create a diversified portfolio that has the potential to deliver positive alpha in all normal market environments. Moreover, we believe that a portfolio of diversified strategies, asset classes, and managers with a beta target of close to zero is ideal for achieving consistent returns.
Prisma’s investment process combines a top-down strategy allocation process with bottom up manager selection to arrive at what we believe are optimal portfolios given a client’s risk and return objectives. Each of our due diligence teams - investment, risk and operations - has full veto right on new managers. Our investment process consists of four parts:
