Quantitative Due Diligence

Aall STAR Asset Management performs Quantitative Due Diligence to locate funds that represent budget adjusted “Best of Breed” within any asset class or geographic / industry sector.

This due diligence and analysis will highlight the top performing managers over any given time frame, by comparing all of the relevant analytical information such as performance, standard deviation, sharpe ratio etc.

Qualitative Due Diligence

The performance of a fund is only one aspect of the overall selection and due diligence process. The following qualitative indicators are used in our due diligence process:

• Age of the fund
• Size of the fund
• Domicile of the fund
• Legal structure of the fund
• Fees & Expenses
• Manager retention (consistency)
• Style analysis
• Support infrastructure
• Liquidity
• Redemption notices
• Audited accounts
• Capacity issues

Performing Qualitative Due Diligence allows us to see the bigger picture with regards to the suitability of the fund being scrutinised. Only when a fund has been subject to both Qualitative & Quantitative Due Diligence will it be considered a potential investment grade fund.

Areas of Analysis

*Quantitative Analysis	*Qualitative Analysis
Peer group analysis	Attractiveness and capacity of the strategy
Return statistics	Investment philosophy, methodology and risk controls
Correlation analysis	Background of individual principals and team
Performance attribution	Organizational structure, continuity
Drawdown analysis	Operational issues
Performance during down markets	Transparency, liquidity
	Equity ownership and financial strength of the firm

*Note: These areas of analysis, among others, are representative of information obtained in the manager screening process.