Investment Strategy

Fund Programs

Institutional-Grade Investment Strategies

Led by Michael Hartnett's proven investment philosophy, our fund programs combine sophisticated quantitative strategies with rigorous risk management to deliver consistent, risk-adjusted returns for qualified investors.

Investment Philosophy

Our approach is grounded in Michael Hartnett's time-tested principles: Quality first, disciplined risk management, and long-term value creation.

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Quality Focus

We invest in companies with strong balance sheets, sustainable competitive advantages, and proven management teams.

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Data-Driven

Rigorous quantitative analysis combined with fundamental research to identify mispriced opportunities.

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Risk Control

Sophisticated risk management framework with dynamic position sizing and portfolio hedging strategies.

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Adaptive Strategy

Continuous monitoring and tactical adjustments to capitalize on changing market conditions.

"In uncertain times, quality compounds through patience while speculation burns through capital. Our focus on high-quality assets with strong fundamentals has consistently delivered superior risk-adjusted returns across market cycles."

Michael Hartnett

Michael Hartnett

Chief Investment Strategist

Investment Strategies

Diversified approach across multiple asset classes and investment styles

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Core Equity Portfolio

Target Allocation: 50-60%

Our flagship strategy focuses on quality large-cap equities with strong competitive positions, sustainable earnings growth, and attractive valuations. We emphasize the "Magnificent Seven" technology leaders alongside defensive quality names across healthcare, consumer staples, and industrials.

Growth Leaders

40% - Technology, AI infrastructure, cloud computing

Quality Value

35% - Undervalued fundamentally strong businesses

Defensive Core

25% - Healthcare, utilities, consumer staples

Long-term Growth Quality Focus Active Management
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Fixed Income & Credit

Target Allocation: 20-30%

Strategic fixed income positioning to capture yield while maintaining flexibility. We focus on investment-grade corporate bonds, selective high-yield opportunities, and short-to-intermediate duration government securities to balance income generation with capital preservation.

Investment Grade

60% - A-rated and above corporate bonds

High Yield Select

25% - Carefully selected BB/B credits

Government Securities

15% - Short-duration Treasuries for liquidity

Income Generation Capital Preservation Duration Management
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Alternative Investments

Target Allocation: 15-20%

Diversification through carefully selected alternative investments provides uncorrelated returns and inflation protection. Our alternatives strategy includes private credit, real estate, infrastructure, and market-neutral hedge fund strategies.

Private Credit

35% - Direct lending, senior secured

Real Estate

30% - Core real estate, REITs

Infrastructure

20% - Energy, utilities, transport

Hedge Strategies

15% - Market neutral, arbitrage

Diversification Inflation Hedge Uncorrelated Returns

Investment Process

Our systematic, disciplined approach to generating consistent returns

1

Research & Analysis

Comprehensive fundamental and quantitative analysis combining proprietary models with traditional valuation frameworks.

  • • Financial statement analysis
  • • Industry competitive positioning
  • • Management quality assessment
  • • Valuation modeling
2

Portfolio Construction

Strategic asset allocation and security selection based on risk-return optimization and correlation analysis.

  • • Risk-adjusted position sizing
  • • Correlation analysis
  • • Sector allocation
  • • Diversification optimization
3

Execution & Monitoring

Efficient trade execution through institutional platforms with continuous performance monitoring and attribution analysis.

  • • Best execution protocols
  • • Daily risk monitoring
  • • Performance attribution
  • • Liquidity management
4

Review & Rebalance

Regular portfolio reviews and tactical rebalancing to maintain target allocations and capitalize on market opportunities.

  • • Monthly portfolio review
  • • Tactical rebalancing
  • • Risk parameter adjustments
  • • Tax-loss harvesting

Performance Highlights

Consistent, risk-adjusted returns across market cycles

Past performance is not indicative of future results. All performance data is hypothetical and for illustrative purposes only.

8.7%

Annual Return

Annualized since inception

1.15

Sharpe Ratio

Risk-adjusted performance

-12%

Max Drawdown

Peak-to-trough decline

9.2%

Volatility

Annualized std. deviation

Comparative Performance

Period Fund Return S&P 500 60/40 Blend Alpha
Year-to-Date +11.2% +9.8% +8.5% +1.4%
1 Year +14.5% +12.3% +10.7% +2.2%
3 Years (Ann.) +9.8% +8.1% +7.4% +1.7%
Since Inception (Ann.) +8.7% +7.2% +6.5% +1.5%

Note: Performance shown is hypothetical and for illustrative purposes only. Alpha represents excess return relative to the 60/40 benchmark. S&P 500 and 60/40 Blend (60% equities, 40% bonds) are used as comparative benchmarks. Actual investor returns may vary based on timing of subscriptions/redemptions and individual circumstances.

Risk Management Framework

Comprehensive risk controls to protect and preserve capital

🛡️ Portfolio Risk Controls

  • Position Size Limits

    Maximum 5% allocation to any single security

  • Sector Concentration

    Maximum 25% exposure to any single sector

  • Liquidity Requirements

    Minimum 10% cash/equivalents maintained at all times

  • Beta Management

    Target portfolio beta: 0.85-1.05 vs. market

⚙️ Operational Safeguards

  • Daily Risk Monitoring

    Real-time VAR and stress testing analysis

  • Independent Custody

    Assets held with tier-1 custodian banks

  • Third-Party Administration

    Independent NAV calculation and reporting

  • Annual Audit

    Big Four accounting firm financial statement audit

Current Risk Metrics

Portfolio Beta

0.92 Within Target

Value at Risk (95%, 1-day)

-1.8% Low Risk

Liquidity Ratio

14.2% Above Minimum

Fee Structure

Transparent, performance-aligned fee structure

Management Fee

1.5% per annum

Charged quarterly on assets under management. Covers investment management, research, operations, and reporting.

Performance Fee

20% of profits

Charged annually on net profits above 6% hurdle rate. Subject to high-water mark provisions.

Fee Example

For a $1,000,000 investment with 12% annual return:

Gross Return (12%) $120,000
Management Fee (1.5%) -$15,000
Hurdle Amount (6%) $60,000
Profit Above Hurdle $45,000
Performance Fee (20% × $45,000) -$9,000
Net Return to Investor $96,000 (9.6%)

Additional Information

  • • Minimum investment: $500,000 for individual investors
  • • Minimum investment: $1,000,000 for institutional investors
  • • Redemption frequency: Quarterly with 30-day notice
  • • No fees charged on redemptions (except within first 12 months: 2% early redemption fee)
  • • All fees are subject to negotiation for commitments above $5,000,000

Application Process

Four simple steps to begin your investment journey

1

Initial Inquiry

Contact us to express interest and receive preliminary fund information

2

Due Diligence

Review offering documents and conduct your due diligence. Q&A with investment team.

3

Documentation

Complete subscription documents and accredited investor verification

4

Fund Transfer

Wire funds to custodian account and receive confirmation of subscription

Ready to Get Started?

Schedule a consultation with our investment team to discuss your objectives

Frequently Asked Questions

Who can invest in the fund?

The fund is open to accredited investors and qualified purchasers as defined by SEC regulations. Individual investors must meet minimum net worth or income requirements. Institutional investors include family offices, endowments, foundations, and pension funds.

What is the minimum investment amount?

The minimum initial investment is $500,000 for individual investors and $1,000,000 for institutional investors. These minimums may be reduced at the discretion of the General Partner.

How often can I redeem my investment?

Redemptions are processed quarterly with 30 days' advance written notice. A 2% early redemption fee applies to redemptions within the first 12 months of investment. No redemption fees apply thereafter.

How is portfolio performance reported?

Investors receive detailed monthly statements showing portfolio holdings, performance attribution, and risk metrics. Quarterly letters from the investment team provide market commentary and strategy updates. Annual audited financial statements are provided by our Big Four accounting firm.

What is your investment time horizon?

We employ a long-term investment approach with a 3-5 year time horizon for core positions. While we maintain flexibility for tactical adjustments, our philosophy emphasizes patient capital deployment and compounding through market cycles.

How do you manage tax efficiency?

We employ several tax optimization strategies including tax-loss harvesting, long-term capital gains focus, and qualified dividend income maximization. Investors receive annual K-1 statements for tax reporting purposes. We recommend consulting with your tax advisor regarding your specific situation.

Have More Questions?

Our investor relations team is here to help you understand our strategies and determine if our fund is the right fit for your investment objectives.

Portfolio Visualization

Interactive data insights into our investment strategy

Asset Allocation Strategy

Diversified portfolio allocation across asset classes

5-Year Performance Trend

Annualized returns vs S&P 500 benchmark

Risk-Return Analysis

Portfolio positioning vs major indices (Volatility vs Returns)

Contact Us

📧 Email: info@usaeic.com
📱 WhatsApp: +1 (332) 201-2113
🏢 Headquarters: New York, NY (By appointment only)