Gridline selects 5 to 10 underlying funds to build a diversified holding based around a specific investment thesis.
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What is a Gridline Thematic Portfolio? Thematic Portfolios allow investors to benefit from diversification across a mix of funds based on asset type, sector, stage and geography. These funds are curated and created by the investment team at Gridline and are available for multiple different asset classes. The image to the right is an example of a Venture Capital portfolio. |
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Who is it for?
Great for those new to alternative investing or investors looking for broad exposure and diversification within an asset class.
What are the benefits of investing in a Thematic Portfolio?
This unique approach curbs the risk that comes with pursuing individual companies or funds, and investing into a representative cross section of a theme will generate strong long-term returns. You are able to gain exposure to multiple fund managers, and therefore 50-100 underlying portfolio companies, within a particular asset class with a single investment.
To achieve this level of diversification through individual investments would require multiple millions of dollars to meet the capital minimums, as well as significant time and resources to source and diligence the funds themselves. Gridline Thematic Portfolios are the most efficient mechanism for achieving diversification in the alternatives market.
How are the thematic portfolios constructed?
Portfolio products are constructed using a Core-Satellite approach not dissimilar to the public markets strategy of the same name. “Core” managers (i.e., those in which the Funds invest approximately $5 million to $10 million) will be selected to provide exposure to their unique sub-asset class with above-average performance, while “Satellite” managers (i.e., those in which the Funds invest approximately $1 million to $3 million) will be selected based on their higher risk-reward profile within the targeted strategy.
While there is no guarantee that the size or mix of investments will be available or achieved, no single investment in the underlying funds will comprise more than 40% of the Capital Commitments made to the Funds.