Pangea Alterative Fund is a thematically driven multi-manager multi-strategy fund. We take a top down macroeconomic investment approach that is predicated on our view that liquidity cycles drive different strategy performances over time. We identify strategies and strategists that in our determination will outperform at certain inflection points that the global financial markets may experience.

We strive to reduce strategy risk by composing a portfolio that is highly diversified across a large number of different strategies and strategists. Weightings of each investment are modified on a monthly basis according to changing market conditions and manager availability. Underlying manager risks are reduced through on-going thorough due diligence and by diversifying across a significant number of managers. Allocation to each manager is made on the basis of their expected performance and risk parameters. During the selection process we are guided by such criteria as historical performance, risk management, organisational structure and operations, investment discipline, capital base and management depth. Other quantitative determinants are correlation sensitivities to general markets and peer group, and "extreme market" survival attributes (i.e. "fat tail risk" neutrality). Managers that drift in style and historical risk-reward parameters are removed.