FS Associates, through its affiliate FS Alternative Investment Research , offers access to analytical expertise in the non-traditional investment management area. FS Alternative Investment Research focuses on the analysis and assessment of hedge funds and hedge fund of funds.

Some of the most talented investment professionals can be found in this non-traditional area where individual talent has a relatively greater impact on investment performance than market movement and where it can be better compensated. However, it is increasingly difficult to find unbiased consulting advice and in depth analytical information on such investment opportunities.  

FS Alternative Investment Research provides such independent advice primarily to European financial institutions, in locating the most suitable alternative managers, based upon the client's specified investment objectives, risk parameters and other selection criteria. The analytical process focuses on:

• Evaluation of hedge funds and fund of hedge funds based upon detailed proprietary quantitative and qualitative analytical criteria
  
  
• Monitoring selected alternative investments an ongoing basis in a professional due-diligence function
  
  
• Establishing tailor made portfolios of alternative investment classes for non-U.S. institutions, assisting in both, the conceptual and the administrative aspects.
  

Our manager evaluation and selection process is based on risk analysis as much as return performance. The analysis begins by determining the risk exposures inherent in each manager's investment strategy and trading style. The manager's risk control and loss containment policies are examined critically. The fund's degree of diversification, leverage and hedging, and the extent to which these characteristics vary over time, are evaluated in detail. A variety of statistical measures, including several unique to FS Alternative Investment Research, are calculated to quantify the impact of the manager's risks on its return volatility and loss potential.

FS Associates, through FS Alternative Investment Research combines the necessary expertise in U.S. based alternative investments together with the understanding of the local European surroundings.