Business Strategies
Spring Mountain Capital offers a number of diverse investment strategies designed to best meet investors needs, and reflect the flexibility, adaptability, and hedging that are essential when investing in markets today
- Portfolio of Third Party Managed Hedge Funds
Since its inception in 2001, Spring Mountain Capital has offered strategies with exposure to third party managed hedge funds and over that time period has built significant infrastructure to support this effort. SMC realizes that achieving positive results requires a rigorous and systematic investment process requiring substantial expertise in strategy selection; identification, evaluation and selection of managers; portfolio construction; and monitoring risk of the overall portfolio.
- Spring Mountain Capital’s risk management analysis of third party hedge funds is based on a variety of factors including investment risk, operational risk, and portfolio risk. SMC conducts investment strategy analysis focusing on leverage, portfolio diversification, liquidity, portfolio turnover, and hedging strategies. On the operational risk side, SMC conducts separate due diligence which includes interviews with third party portfolio officers, legal document review, independent verification of assets, and counter-party analysis. When it comes to portfolio risk, SMC carries out a quantitative risk assessment as well as a qualitative risk assessment.
- Systematic Strategy
Spring Mountain Capital’s systematic strategy utilizes a proprietary algorithm that considers a number of economic and market factors to assess whether it is prudent to take investment risk, and if it is, what type of risk makes sense. SMC believes that a highly liquid approach is preferable, and thus utilizes investment instruments that facilitate this philosophy. SMC also takes a progressive approach by taking a global view of certain major markets.
- Private Offerings Strategy
Spring Mountain Capital has pursued a private offerings strategy since the firm's founding, including exposure to third party managed private equity funds, direct co-investment strategies and direct exposure to private offerings. The firm currently offers a private offerings strategy and a co-investment strategy, and plans to continue finding, sourcing and structuring deals on its own.
- Actively Managed Private Vehicles
In addition to more traditional lines of business within alternatives, Spring Mountain Capital has been opportunistic and innovative in creating strategies that take advantage of market dislocations that offer favorable risk/reward possibilities. The firm seeks asymmetric investment opportunities in which it believes the downside is limited and the upside opportunities are disproportionately large. Previously the firm has invested in ideas which benefited from widening credit spreads, mispricing of European sovereign debt, and distressed selling of misunderstood structured credit instruments. Going forward, SMC will leverage its relationships and reputation to identify additional opportunities that offer attractive risk/reward potential for its clients.
- Municipal Bond Funds
Spring Mountain Capital’s affiliate, SMC Fixed Income Management, has over 100 years of combined portfolio experience in the municipal bond business. It offers municipal bond portfolio management through a municipal bond unit investment trust with an institutional selection of bonds. SMC FIM also offers municipal bonds insured by Berkshire Hathaway, which has a proven track record with institutional management, and invests in an institutional selection of bonds.