Manager: Focal Point Management

Models: Quantitative Broad Index, Quantitative Hedging

Performance for our portfolios during 2011 was below the major indexes and our expectations. We use a heavily statistical approach, looking at historical patterns as well as key data points, such as institutional buying and selling.

We did see improvement in our models towards the end of the year, particularly as we began to play direct volatility in one of our portfolios. We hope to carry this improvement into the new year.

For 2012, we will continue to play volatility in one of our portfolios, and use a more conventional long/short equity approach in our other portfolio. We will monitor results as the year progresses.

Our primary investors at Focal Point are individual clients with the goal of providing them institutional and hedge fund level exposure they would otherwise not obtain.  This gives us a bit of a niche approach in the client segments we serve.