Graham Capital Management, L.P. Partners with CAIS to Expand Access to Independent Private Wealth Channel
• by CAIS
Partnership coincides with advisors’ rising demand for alternative multi-strategy funds amid positive returns in 2022
February 23, 2023 – New York, NY – CAIS, the leading alternative investment platform for independent financial advisors, today announced that Graham Capital Management, L.P. ("Graham"), a global alternative investment firm with approximately $17.9 billion in assets under management that specializes in providing quantitative and discretionary macro strategies, is partnering with CAIS to add select alternative investment funds on the CAIS Marketplace.
The announcement coincides with positive performance across macro strategies over the last year, with assets under management in this asset class reaching an estimated $890 billion in 2022.1 The Graham fund currently listed by CAIS has undergone a third-party due diligence process conducted by Mercer and will be made available to thousands of RIAs and independent broker-dealers (IBDs) who oversee more than $3 trillion in assets. These independent advisors are provided with leading technology through the CAIS Platform that seeks to enable a more efficient pre-trade, trade, and post-trade experience. In addition, Graham will receive access to CAIS’ Asset Manager Experience, a data-rich dashboard, which provides product interest and pipeline from advisors using the CAIS Marketplace.
“2022 was a strong year for macro and a reminder of the importance of portfolio diversification. We are optimistic that the opportunity set for our strategies will continue to be strong, so we are particularly excited about the timing of our partnership with CAIS,” said Brian Douglas, Chief Executive Officer of Graham. “Over time, macro has low correlation to equities, bonds and other alternatives and we believe that it can therefore be a valuable portfolio construction tool. While no single strategy performs well at every discrete point in time, we believe that holding a diversified alternative as a long-term, strategic allocation in a broad investment portfolio offers the potential for significant benefits over time for all investors, including RIAs and independent broker-dealers and their underlying clients.”
The private wealth channel has historically been under-allocated to alternatives compared to institutional investors, which often allocate between 30% and 50%. A recent CAIS-Mercer survey found that nearly 88% of financial advisors intend to increase their allocations to alternatives over the next two years, signaling a rising demand for alternatives asset classes amid a backdrop of one of the lowest annual performances of the 60/40 portfolio over the last two decades.2
“The correlation between equities and bonds rose to a 27-year high in 2022. As investors seek out uncorrelated returns, portfolio diversification and a hedge against inflation, the modern three-dimensional portfolio – a 50/30/20 mix of stocks, bonds and alternatives – may be emerging as the new norm for independent advisors and their clients,” said Brad Walker, Chief Client & Product Development Officer at CAIS. “Our partnership with Graham reflects CAIS’ commitment to providing the private wealth channel with quality alternative strategies and a more efficient means of accessing and managing these products.”
CAIS is the leading alternative investment platform for independent financial advisors who seek improved access to, and education about, alternative investment funds and products. CAIS provides financial advisors with a broad selection of alternative investment strategies, including hedge funds, private equity, private debt, real estate, digital assets, and structured notes, allowing them to capitalize on opportunities and/or withstand ever-changing markets. CAIS also offers custom solutions for advisors seeking to create custom fund vehicles around ideas they source.
As an extension of the platform, CAIS also delivers an on-demand, online learning experience, CAIS IQ, which is designed exclusively to help financial advisors deepen their knowledge and increase their confidence in alternative investment strategies.
Most funds listed on the CAIS Marketplace undergo Mercer's independent due diligence and ongoing monitoring. Mercer diligence reports and fund ratings are available to advisors on the CAIS password-protected platform. CAIS streamlines the end-to-end transaction process through digital subscriptions and integrated reporting with the leading US custodians and reporting providers, which make investing in alternatives simpler.
Founded in 2009, CAIS, a fintech leader, is empowering over 8,300 unique advisor firms/teams who oversee more than $3 trillion in network assets. Since its inception, CAIS has facilitated over $21 billion in transaction volume as the first truly open marketplace where financial advisors and asset managers engage and transact directly on a massive scale. CAIS has offices in New York, Los Angeles, Austin, San Francisco and London. For more information about CAIS, please visit www.caisgroup.com.
Securities offered through CAIS Capital LLC, member FINRA, SIPC.
About Graham Capital Management, L.P.
Graham Capital Management, L.P. is an alternative investment manager founded in 1994 by Kenneth G. Tropin. For nearly three decades, Graham has specialized in providing compelling quantitative and discretionary alpha opportunities across a variety of market environments that seek low correlation to traditional investments. While Graham is one of the longest running macro and trend-following managers, the firm is committed to the innovative evolution of its strategies, supported by a well-established investment, technology, and operational infrastructure. By leveraging the unique synergies between the firm’s quantitative and discretionary trading businesses, Graham has developed a broad range of complementary alpha strategies with a focus on thoughtful portfolio construction, active risk management, and diversification by design. Significant proprietary capital is invested in many of Graham's strategies, contributing to the alignment of interest between the firm and its clients. Graham's clients include global institutions, endowments and foundations, family offices, sovereign wealth funds, investment management advisors, and qualified individual investors. The firm manages $17.9 billion AUM as of February 1, 2023. For more information about the firm visit: www.grahamcapital.com
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HFR, Market Microstructure HF Industry Report – Q3 2022; FT, Multi-strategy hedge funds are the new, superior fund-of-funds.
HFR, Venn as of April 2022, 60/40, Portfolio represented by S&P 500 Index and the Bloomberg Barclays Aggregate Bond Gross Index.