SkyRank, Patent #7,536,333, is a patented hedge fund rating methodology, flexible in nature, and encompassing quantitative and qualitative inputs to produce an unbiased systematic rating on alternative investment funds.
June 6, 2014 - Bermuda - Sky Fund LLC launches Investable Index of Alternative UCIT Funds
Millions of data points, tens of thousands of hedge funds, UCITS and Liquid Alternatives have been analyzed and rated using the U.S. Patented SkyRank System.
The highest rated SkyRank funds consistently are able to reduce market risk, while delivering consistently positive returns over time, rarely losing capital. Funds that receive ratings typically have at least three years of experience, high risk-adjusted returns, a strict risk management methodology, and a defined theoretical edge within a specified market segment. A portfolio of alternative funds optimized using SkyRank typically enjoys increased alpha of at least 3% in annual returns above the equally weighted underlying portfolio. The SkyRank System provides a robust initial ranking prior to detailed fund position analysis by the SkyRank Team. Our analysts are diligently striving to find the needle in the haystack, that rare fund manager who is able to deliver true alpha and non-correlated returns. We then look at the underlying positions in order to understand where the Alpha is derived and if it is sustainable. We are not interested in high absolute returns; our competency lies in consistency of positive returns regardless of movements in global equities, bonds, real estate, commodity prices or any other asset price.
We are working to build portfolios of alternative fund managers that are completely immunized from market movements.
It is this combination of proprietary quantitative and qualitative analysis that allows the highest quality funds in the industry to be revealed. We then build long-lasting relationships with the fund managers, stay in touch with them, to identify any potential risks of that fund manager losing their edge.
The SkyRank System, after ten years of iteration and improvement, has evolved from a quantitative rating at its inception, into a process of understanding at its core.