Robert Stone

Tremont's investment approach begins with a focus on strategy allocation. While hedge funds are not as liquid and transparent as traditional asset classes, Tremont believes that asset allocation, as represented by strategy selection, plays an important part in the generation of superior returns. The firm selects managers for their funds of hedge funds from the pool of available managers that have passed through their multi-stage due diligence process. In order to screen through and organize the sizable universe of hedge funds, their analysts utilize their Tremont Investment Management System, a comprehensive, proprietary database that enables them to capture both qualitative and performance-based quantitative information on hedge fund managers and to compare managers to their peer groups using underlying TASS data. Tremont collaborated with RiskMetrics in co-developing an analytical platform that offers managers the opportunity to report their risk exposures to RiskMetrics HedgePlatform without divulging their positions. In turn, RiskMetrics HedgePlatform has developed a myriad of risk reports based on position level information, including portfolio concentration analysis, leverage and liquidity analysis, sector, currency and geographic breakdowns, scenario and stress testing and other metrics including Value at Risk.