Located in Chicago, Alyeska Investment Group provides discretionary advisory services to private investment funds. It does this through three master-feeder structures, two of which each have a domestic and offshore partner. The hedge fund manager describes its techniques as “highly speculative” and states that it “seeks to mitigate systematic risk embedded in equity securities through the deliberate construction of non-systematic portfolios.”
With about $10.4 billion in assets under management (AUM), the firm has 51 employees, including 35 advisors. Its investors are very wealthy and more than half are not in the U.S.
Alyeska Investment Group Background
Alyeska Investment was founded in 2008 and registered as an investment advisor with Securities and Exchange Commission (SEC) in 2010. Anand Parekh is the principal owner, while Chief Financial Officer Jason Bragg and Chief Compliance Officer Brent Cunningham have small stakes.
Alyeska Investment Group Client Types and Minimum Account Sizes
Technically, Alyeska Investment’s clients are the private funds it manages. Investors in these funds, then, are “accredited investors” as defined by the Securities Act of 1933, “qualifed purchasers” as defined by the Investment Company Act of 1940 and non-U.S. persons or entities.
The firm’s minimums range from $10 million to $15 million, though the firm may waive minimums at its discretion.
Services Offered by Alyeska Investment Group
As mentioned earlier, Alyeska Investment advises hedge funds. Its affiliated fund partners are commodity pool operators or commodity trading advisors.
Alyeska Investment Group Investing Philosophy
The firm describes its objective as “to generate a consistent, long-term appreciation of assets through the active management of an equity-focused portfolio which includes sector specific, market-neutral sub-portfolios together with various complementary equity-focused investment strategies.”
In plain English, it invests in a broad range of instruments, including stocks, corporate bonds, convertible bonds, options, futures, credit and equity derivatives and other credit-based products. It takes both long and short positions and considers both exchange-listed and over-the-counter securities.
To reduce interest rate and/or currency risk, the firm utilizes interest rate derivatives, foreign currency spot, forward and options contracts, credit default swaps and equity index contracts. It also participates in initial public offerings.
Alyeska Investment Group Fees
Like most, if not all, firms, Alyeska Investment collects management fees based on AUM. The annual percentage ranges from 2% to 3%, and may go down incrementally for investors who continuously stay in the fund for two or more years. The firm also receives a performance-based fee equal to 20% of net realized or unrealized gains. All that said, Alyeska may reduce or waive its fees at its discretion.
|*Estimated investment management fees do not include brokerage, custodial, third-party manager or other fees, which can vary in amount. Fee amounts are based on annual percentage range.|
|Estimated Investment Management Fees at Alyeska Investment Group*|
|Your Assets||Alyeska Investment Group Fee Amount|
|$10MM||$200,000 - $300,000|
What to Watch Out For
Alyeska Investment had no legal or disciplinary actions in the past 10 years to disclose in its most recent SEC filings. Alyeska Investment does not offer customized advisory services. It also doesn’t provide financial planning or wealth management.
In fact, the only individuals it works with are ultra-wealthy and highly sophisticated investors. So if you’re a small investor or you’re seeking general financial advice, this firm will likely not be a good fit.
Opening an Account With Alyeska Investment Group
To contact Alyeska Investment, call (312) 899-7900. (Its website only shows its logo, address and phone number.)
All information was accurate as of the writing of this article.
Tips for Finding a Financial Advisor
- Don’t have millions to invest? Use SmartAsset’s financial advisor matching tool. Simply answer questions about your financial situation, and the program will match you with up to three suitable advisors in your area.
- Ask how advisor candidates get paid. Those who receive commissions from third parties on top of fees from you will likely have more conflicts of interests than those who only receive fees. That said, if any advisors say they are fiduciaries, that means they will work in your best interests.