Independent fund management firm, Hilltop Fund Management has announced the launch of its London-based business and its alternative fund of hedge funds approach. The All Weather Fund, managed by Rory Hills, is a fund of hedge funds designed to deliver consistent, absolute returns in all environments through a portfolio of uncorrelated hedge funds, unconstrained by investment style.

The All Weather Fund, domiciled in Gibraltar, will invest in approximately 15 underlying hedge funds diversified by investment approach and geography. Hilltop will pursue a bottom-up investment approach focused on fund selection rather than top-down asset allocation.

Hilltop's performance fees will have a three year high watermark and remain fully at risk throughout this period. Additionally, the Fund utilises a progressive hurdle rate, which increases over time depending on an investor's duration in the fund.

Rory Hills, Founding Partner and Portfolio Manager said, “Investors in fund of hedge funds have largely been let down: they thought they were buying uncorrelated, absolute returns but received the opposite in the crisis: highly correlated, negative returns. In 2008, over a third of single managers were up (according to Eurekahedge) yet more than 97% of diversified fund of hedge funds were down (BarclayHedge). Almost all fund of hedge funds failed to do their job during the crisis in identifying the winners from the losers."