Olive Ridley Nesting Habitat
In addition to its direct investment program, First Haven works with its clients to develop a specialized globally allocated fund portfolio designed to outperform international markets over a long-term horizon. Passive and active strategies are utilized in a tax-efficient manner to navigate through business cycles and take advantage of broader economic themes. In addition to traditional global and regional equity and fixed income allocations, First Haven partners with alternative and illiquid fund managers from around the world to diversify and amplify portfolio returns. Seasoned investment professionals source, thoroughly vet and regularly review all fund investments, providing FHC the ability to be both patient and opportunistic during periods of heightened volatility.
Based on clients’ objectives and risk constraints, First Haven constructs a globally diversified portfolio intended to outperform an agreed-upon benchmark across market cycles. FHC focuses on funds that have established and consistent track records and emphasizes business viability and team continuity for limited partnership investments.
Manager Search Process
Below are the key tenets of First Haven’s sourcing and due diligence process.
Private Equity & Venture Capital
FHC uses tax efficient municipal strategies paired with traditional bond managers to generate yield and serve as a broader risk-off hedge. High yield and non-US fixed income are tactically employed to enhance risk-adjusted returns
The globally diversified equity portfolio utilizes both active management and passive strategies (where Alpha potential is nominal). For active investments, FHC has a bias toward concentrated stock-pickers with long-term holding periods. Factor exposure is strategically considered to help inform asset allocation, but factors are tactically rebalanced per tax considerations.
Absolute Return strategies are used to lower overall volatility in the portfolio and access non-traditional liquid asset classes.
To capture premium in less liquid markets, drawdown investment structures are used to get exposure to private equity, private credit, and venture capital investments. FHC diversifies across strategy, objective, and firm, but it will also partner with a quality GP for multiple vintage years.
Due to lower correlations to other asset classes, ongoing exposure to Real Assets helps the portfolio better withstand inflation and exogenous shocks. In addition to consistent yields, collateral based investments mitigate downside risks while enhancing total return
FHC does not time markets, nor does it invest in binary outcomes; however, FHC will look to take advantage of major dislocations that have a strong thesis to normalization. Opportunistic investments are made via direct, liquid, and illiquid structures.