Opportunity

Global commerce is changing. Trade barriers are coming down and once closed economies are now opening. Non-Western producers and consumers represent a much bigger part of the market. Improved communication tools accelerate the flow of ideas and information. Economic policies and market shocks in one major country or region quickly spread globally, and thus harmonize the global and regional business cycles. Quantitative easing, bank regulatory changes, natural resource constraints, and major political changes are increasingly important decision factors for investorsand offer superb opportunities for those who are flexible, disciplined, and savvy.

Flexibility
Firstly, a core product we offer at Iron Harbor is a hedge fund. What is a "hedge fund"?
We often find this term used in misleading or confusing ways. We define the core features of a hedge fund as an investment vehicle that:
Is a flexible capital source Identifies mispriced risk Constructs baskets of securities to accurately capture opportunity Aligns manager incentives strongly with outcomes for investors

We have called our hedge fund a Global Opportunity fund. So, where is the opportunity?
We believe that we can demonstrate to investors that markets are generally inefficient at pricing opportunities across asset classes, regions, and with respect to consistent core factor elements which affect the pricing of all assets.

Discipline
What type of market inefficiencies create opportunities?
Many investors lack steady, long-term guideposts and objectives. The noise of daily markets consequently causes these investors to alternate between being overly fearful and overly optimistic over short periods of timeemotions which blind investors to the big opportunities on the horizon. We, however, take a longer view at Iron Harbor and time our greatest optimism for the early stages of an improving cycle and our greatest pessimism for the early stages of a vulnerable global or regional cycle. Overall, markets are efficient in that investors get what they want. In many cases, investors simply want some measure of certaintypeace of mind. That peace of mind, however, comes at a cost. Every quarter, investors pay premiums for insurance strategies that cover trillions of dollars of assetsinsurance strategies like hedging changes in the future price of oil or long-term interest rates. Disciplined managers with flexible capital can provide that peace of mind, manage the risk, and earn steady, uncorrelated returns.

Structure
How do we seize these Opportunities?
First, we have to determine the true value of an asset and the possible range of market prices over a given period of time periodit is not a simple task. It requires insight into economic logic and investment perspective, efficient information gathering, and quiet intellectual persistence. We employ a top-down analytical approach to ensure we have a complete view of all investment options. This approach, combined with the basics of investment theory and our real-world market experience, allows us to also tailor bespoke products to suit unique investor needs. Next, we design efficient trading and investment strategies in order to shape our targeted return profile. The portfolio is comprised of our best ideas which are calibrated to deliver expected return outcomes that are independent. Finally we pay close attention to portfolio volatility, tail risk, and liquidity and have developed appropriate internal guidelines.

Team
Who are we?
The Investment Team is comprised of two CFA charterholders with deep experience in global economics, asset valuation, real-world business and trading performance, and statistical analysis and risk management. The combination of critical skills in each of these fields is rare enough that there are few market participants who can capture the opportunity we have outlined here.
The Operations Team includes professionals with proven expertise in front and back office operations. Their contribution in establishing the appropriate infrastructure, compliance, and marketing programs is a primary source of our business stability. The core team is small and tightly integrated. This preserves decisionmaking flexibility and allows cross-fertilization of ideas without the encumbering necessity of consensus building. We are ready to help. info@iharborcap.com