Investment Process

ELEMENT investment process consists of a transparent five-stage approach applied to every potential investment:

1. - IDENTIFY INVESTMENT UNIVERSE
      - Identify appropriate investment opportunities within:
      - Hedge fund universe
      - Individual investment securities (Equities and Fixed-Income)
      - Special opportunities

2. - RESEARCH, DUE DILIGENCE, & MANAGER SELECTION
     
- Conduct a thorough and rigorous due diligence process that focuses on both quantitative and qualitative elements:
      - Quantitative: Performance, volatility, correlation
      - Qualitative: Transparency, background checks, business structure,
        operational structure

3. - PORTFOLIO CONSTRUCTION
      - Create a portfolio that adequately diversifies investments across:
      - Geographies
      - Strategies
      - Multiple Hedge Fund Managers
      - Adequate Position Sizing
      - Rigorous Statistical Analysis

4. - PORTFOLIO MONITORING
      - Continually monitor strategies and managers
      - Ability to change/adjust strategy fast and efficiently
      - Communicate results appropriately to clients

5. - RISK MANAGMENT
      - Continually monitor the risk profile for each position and the overall portfolio
      - Actively manage the portfolio to maintain diversification across investments
      - Dynamically re-allocate capital to ensure balance within the portfolio

This investment process allows ELEMENT to deliver robust investment performance in changing market conditions; achieving above average results when markets are favorable, while protecting our client’s investment portfolio when market conditions are difficult. ELEMENT is concerned with absolute returns not relative returns. The key to an investment portfolio performance lies on the correct balance among different asset classes while retaining the ability to be dynamic and adjust to changing environments. ELEMENT is dedicated to providing this service to its clients in a transparent process.