Aligned Interests
It is important for portfolio managers to demonstrate a longstanding commitment to their investment strategy. The managing director of the Cimarron funds has been allocating personal wealth to hedge funds since 1997 and also is an investor in private equity funds. Members of the investment team have similar records of investing their own capital in the alternatives space, to which we allocate our clients' funds. Our personal capital management clearly demonstrates our belief that the best risk/reward opportunities for investors lie in the alternatives universe.
Aligned financial interests among the investors and managers of the Cimarron funds is crucial. This is achieved not only by the professional staff's longstanding investments in the alternatives sector in general, but also by the significant personal investments the principals have made in the Cimarron funds. We insist on this incentive structure when choosing underlying hedge fund managers. Thus, we only invest with portfolio managers who have significant portions of their personal net worth invested in their funds. When the gain or loss of all fund managers is tied to that of the clients, we believe investments are managed more prudently.