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Absolute Return Fund

Fund Overview

Fund Goal

To generate investment returns that are not highly correlated to the public securities markets.

 

Who Can Invest

Any family member who is an accredited investor. The initial minimum investment is $50,000.

 

Who Might Want to Invest

An investor who:

    • Is looking for consistent performance, and is willing to accept less upside return in years when the market indices are performing well in return for more downside protection in years when the market indices are performing poorly.
 
Strategy and Fund Description
This entity was formed on January 1, 2014, as part of Sedgwick’s hedge fund restructuring. One of the benefits of this restructuring is that it allows a greater number of family members to participate in an absolute return investment strategy. In order to accomplish this, investors in Sedgwick Absolute Return Fund, LLC, do not have discretion to allocate their investment between the two investments in this fund. Allocation decisions are made by the Managing Member of Sedgwick Absolute Return Fund, LLC, Sedgwick Advisers, LLC, in consultation with an Advisory Board.

 

Sedgwick Absolute Return Fund, LLC, currently holds these funds:

Blackstone Partners Investment Fund, L.P., and an equal blend of these three mutual funds: Boston Partners Long/Short Equity Institutional Fund, FPA Crescent, and the Wells Fargo Absolute Return Fund.

 

Blackstone Partners Investment Fund, L.P., managed by Blackstone Alternative Asset Management in New York, is a multi-strategy hedge fund-of-funds. This fund had been utilized in both QP Select and AI Alternatives prior to our January 2014 restructuring. Blackstone utilizes numerous hedge fund managers pursuing many different absolute return strategies to generate returns that are not highly correlated to the public securities markets, i.e., a fund that cushions, or “hedges”, market volatility.

 

The Absolute Return Fund also allows an allocation of up to 10% in the long/short equity mutual funds. This helps to ensure adequate monthly liquidity for our investors. Otherwise, investors might have to wait six months before Sedgwick could redeem some of its investment in Blackstone. While every attempt is made to fulfill every withdrawal request, the Manager has the discretion to defer withdrawals from this fund until cash can be made available.