GHP Funds


SVP I, the debut fund for the firm, closed in December 2002 and invested with four highly successful leveraged buyout funds. SVP I is diversified by sector and geography.

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SVP II is a leveraged buyout fund of funds which closed in December 2006. SVP II represents a continuation of the successful strategy utilized by the predecessor fund, primarily investing with large, top tier LBO and growth equity firms. SVP II is diversified by sector and geography.

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SVP Real Estate I, LP ("SVP RE I"), closed in February 2008, is a private real estate fund of funds. As with SVP I & II, SVP RE I received allocations with historically successful, highly sought after underlying fund managers who pursue compelling investment strategies. The fund is diversified by sector (Office, Hotel, Industrial/Warehouse, Retail and Residential) and geography (U.S., Europe, and Asia/Pacific).

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The GHP Credit Opportunity Fund (“GHP COF”) is a fund of alternative credit and distressed debt funds that is being raised and invested to pursue two specific investment themes: (1) the de-leveraging of European Banks, and (2) the potential for a distressed cycle in U.S. High Yield Credit. GHP COF will pursue complex liquid and illiquid credit opportunities in the U.S. and Europe.

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GHP Library

Risk Factors as Building Blocks for Portfolio Diversification

In search of higher returns at current risk levels, institutional investors have expressed intense interest in further
diversifying seemingly staid, “traditional” asset allocations constructed using asset class inputs with mean variance-optimization (MVO) tools. During the past decade, institutional investors have augmented public fixed income and equity allocations with a wide range of strategies—including full and partial long/ short, risk- parity, and low-volatility strategies—and have enlarged
allocations to alternative strategies. However, comparatively little has been accomplished at the overall policy level; for most investors, asset classes remain the primary portfolio building blocks.
In this article, I explore portfolio construction by using risk factors, also referred to as “risk premia,” as the basic elements. Theoretically, this approach may result in lower correlations between various portfolio components and may lead to more efficient and diversified allocations than traditional methods. However, the practical limitations of policy portfolios constructed with risk factors are significant enough that few investors are embracing full-scale implementation. Yet, much of the intuition of risk factor portfolios can be used to refine and augment traditional allocations and offers a holistic and succinct manner to diversify portfolio risk.
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