Institutional investors employ RCM to source and structure global macro and managed futures investments, fitting their unique mandates and risk/return profile needs to investments, structures, and clearing relationships which deliver on those needs.
Whether it be setting up access to a managed account platform or insuring investments report into a preferred risk system, RCM builds bespoke solutions, touching on all aspects of the investment from manager meetings and due diligence to vendor selection and new account on boarding.
We believe alternative investments can provide needed diversification and return amplification, but that not all alternatives are up to the task, with better results achieved through allocating to multiple “right-sized” managers with meaningful commodity exposure across different markets, trading strategies, and time frames.
RCM Alternatives pairs high net worth individuals, financial advisors, and institutional investors with commodities based alternatives investments through mutual funds, managed accounts, and private funds. Our clients and team currently allocate to 50+ managers with combined assets in the billions.
How We Work
We eschew a ‘one size fits all’ approach for a consultative approach where we work with clients to find solutions that work for them, allowing for a more customized and cost efficient exposure to alternatives with the ability to mix and match funds to meet your specific risk and reward parameters.
Finding Unique Talent
We help institutional investors scour the world of alternative
investment opportunities to identify those with robust, consistent performance,
sophisticated risk management processes, and well developed operational infrastructure.
Asking the Right Questions
To Arrive at the Right Allocation
Crisis Period or Absolute Return Performance?
Are you looking for 2008-style crisis period performance out of your allocation, or just absolute returns and low correlation over time? Some programs are designed to show negative correlation in market crisis, some may actually have positive correlation in a crisis while otherwise providing absolute returns. Identifying the different beforehand is critical.
Active Management or Passive Replication?
A proliferation of ‘beta’ products offering passive replication of certain strategy types like trend following can offer cheaper exposure (50bps to 100bps versus 2&20) , and who doesn’t like cheaper? But there’s more to the equation than just cost, as they are designed to be average and issues such as negative selection bias abound.
Single or Multi-Manager
Do you put your eggs in one basket, with larger upside but had better be right? Or play it a bit safer and diversify the diversifier across multiple non correlated investment programs?
Dynamic or Static Portfolio?
How often should the portfolio be re-assessed, profits and losses rebalanced, and when should managers be fired are key PRE investment decisions, leading to either a dynamic portfolio allowing for quicker turnover, or more buy and hold approach where get to know component managers really well and stick with them through thick and thin.
and investment access
The built in leverage and capital efficiency of futures markets makes for unique risks, opportunities, and complexity in accessing the investment returns of managers. RCM assists investors in finding the right access point for them, assisting in structuring the investment via one or more of the following:
*Percentages denote approximate customer interest in each area
MULTI-fcm CLEARING SOLUTIONS
We Work With
Our team syncs your needs with the abilities of multiple FCMs/Prime Brokers (mixing and matching capacity, market coverage, credit ratings and more) to create a custom, cost effective solution across FCMs, replacing multiple contacts and layers of bureaucracy at brokers and banks with single point of contact at RCM to manage it all.