Our Search for Excellence
The AI Global Investors Process
Partnering to level up
a sum greater than its parts
We work with talented investment professionals who produce persistent alpha and can leverage a larger platform to scale their businesses and attract institutional investors.
Below are the steps we take all PM Team candidates through to evaluate their fit and bring them on board if they are accepted to our platform.
Qualitative/Quantitative Due Diligence
At this initial step, we assess whether the Investment Management team is a potential fit for the AI platform. Generally speaking, we are seeking experienced teams with a track record of producing persistent alpha. We have no biases. Our fund structures can accommodate both liquid and illiquid strategies across most geographies. What we are looking for is quality teams that can benefit from leveraging our management company and fund platforms and which we can help scale via our infrastructure and access to capital. In short, we are interested in partners that generate alpha.
In Depth Analysis
After an initial assessment of fit for the AI platform, we then need to do a deep dive to understand the team’s strategy. This starts with determining its inherent systematic risks (betas). The operative question is whether there are residual returns remaining once these betas have been excluded, and if so, how can they be explained. If our analysis shows that alpha is being produced, the team proceeds to the next step of our process.
Reference and Background Checks
Integrity, History of Success and Professionalism
We place enormous emphasis on ensuring we attain every relevant datapoint we can on our PM teams. After all, they will be our partners for the long-haul. PM teams can expect that we will reach out to a wide variety of the people with whom they have interacted over the course of their careers as we try to understand:
- ● How and from whom they learned to extract alpha from markets
- ● If they have a repeatable process that can be successful on our platform
- ● Whether the team will be accretive to the collective intellect and
- corporate culture of AI
- ● If the team will reflect positively on our firm and its clients and regulators
Execution of Contracts
Once we are confident that a team will be accretive to our platform, we agree the standard terms which govern the team’s rights and obligations and execute the documents which reflect the structure of our relationship and that of the team’s management company.
Joining the Platform
The execution of agreements kicks off a series of on-boarding activities that occur concurrently.
- ✓ Set up on OMS/EMS/Risk etc.
- ✓ Bloomberg
- ✓ Internal team intranet site and groups
- ✓ Procure hardware
- ✓ Procure market data
- ✓ Required registration with NFA/CFTC and/or state regulators as required
- ✓ Investment Manager’s brand is added to AI Global Investors registrations with NFA and/or SEC as a DBA
- ✓ Bank accounts set up for the PM’s business
- ✓ AIGI sets up accounting for the PM’s business and prepares monthly management statements
- ✓ Team members set up with HR/payroll and benefits
- ✓ Office space at an AIGI location
Funding of Initial Accounts and Funds
Once onboarded, we work with the PM team to assign existing and set up new SMA client accounts and/or plan and launch a fund on the team’s strategy. Funds can be domiciled either in Ireland within our existing Irish umbrella structure (which allows for ease of distribution globally, including in EU member countries), or in Bermuda within our upcoming Bermuda umbrella fund structure.