Paolo Sardi (Luxembourg)
Founding Member and Chief Executive Officer - ECPI
ECPI MARS Methodology
ECPI MARS® (Manager’s Alpha and Risk Score) is a rule-based rating model adapted to the hedge fund industry. By focusing mainly on operational issues of a hedge fund or fund of hedge funds, MARS tries to identify a manager’s alpha generation ability and to mitigate the fund-specific blow-up risk involved in an investment.
The MARS® approach shifts the sustainability assessment from the portfolio level to the fund level and is based on an overview of the Hedge Fund Manager under screening: Corporate Strategy Sustainability: what the managers do within their core business · Daily Operational Sustainability: how they perform daily tasks and duties through a comprehensive analysis of a broad range of sources of information, both internal and external. Furthermore, the corporate strategy and daily operational screening criteria include a number of categories, aspects and indicators, with a progressive level of details.
Since 2006 ECPI Hedge Fund Division has been monitoring more than 360 hedge funds and funds of hedge funds through its database, and this number grows quickly with new mandates from clients. ECPI also issues semiannual MARS Report on hedge funds or funds of hedge funds at the clients requests.