Augustus launches due diligence service

Augustus Capital, a New York based Financial Industry Regulatory Authority (FINRA) broker-dealer, and Augustus Advisors, a registered investment advisor, have set up a business focusing on manager due diligence in the alternative investment industry.

The service will encompass tll types of hedge fund and CTA strategies.All exchange-listed securities within the major asset classes - global equities, foreign exchange, global fixed income, and commodity futures - will be targeted. Cash and derivative securities will be evaluated.

Augustus Advisors is a small family office specialising in customised asset allocation and managed accounts in alternatives. Although the company allocates to private equity, venture capital, real estate, natural resources, it will not offer due diligence services to these asset classes. It will focus entirely on funds trading liquid, publicly listed securities and with more favourable liquidity (redemption) provisions.

Augustus Advisors is also a general partner of the Augustus Fund, a global multi-strategy, multi-asset class (predominantly equities), market-neutral fund employing disciplined thematic positions and short-term trading.

"Thorough, accurate due diligence requires actual hands-on training and trading experience in the strategies and securities one is examining," according to Mark Abeshouse, CEO of Augustus Capital and co-portfolio manager of the Augustus Fund. "Too few asset allocators or analysts amongst consultants and fund of fund professionals have ever traded professionally or been trained by prolific sell-side firms. Too few have ever managed institutional sums of money or engaged in quantitative risk management for well-known "buy-side" asset management firms," he said.

This business venture of aimed at companies that allocate to or advise on hedge funds and CTAs. The most likely potential clients include fund of funds, pension consulting companies, family offices, retirement plan sponsors, foundations/endowments/non-profits, etc. as well as select high net worth individuals.