Private Wealth Magazine | July/August 2014

Interview with Crystal Capital Partners

With over 20 years of alternative investment industry experience, Crystal Capital Partners helps advisors seamlessly integrate institutional-quality hedge fund portfolios into their advisory business.

Q. Describe your firm, its funds and its mission.

A. With over 20 years of alternative investment industry experience, Crystal Capital Partners helps advisors seamlessly integrate institutional-quality hedge fund portfolios into their advisory business. Our comprehensive service allows advisors and other financial intermediaries the opportunity to attract more assets by providing their clients customized hedge fund portfolios.Starting at $250,000 per investor, and with no per-fund minimums, advisors can access over 75 institutional-quality hedge funds, benefit from our proprietary hedge fund analytics, and leverage our qualitative research and independent operational due diligence. Other services include a streamlined subscription process, consolidated reporting, simplified ongoing portfolio rebalancing, consolidated K-1 preparation, and more.Bank of New York Mellon is the custodian, Trident Trust Company is the administrator, and Ernst & Young is the independent auditor. Additionally, we provide private label services and are integrated with all of the major custodial platforms.

Private Wealth Magazine Cover: Managing Fame & Fortune

Q. What is your Investment Strategy?

A. We offer two separate programs that allow advisors to construct institutional-quality customized hedge fund port-folios across multiple asset classes.

Customized Hedge Fund Portfolios - A Solution for Qualified Purchasers: Our proprietary qualitative research and quantitative analytics enable advisors to select amongst 75+ vetted, institutional-quality hedge funds and create customized hedge fund portfolios that are tailored to meet their clients’ unique investment objectives.

Customized Strategy Portfolios - A Solution for Accredited Investors: Advisors create customized hedge fund portfolios by selecting among different Strategies. Each Strategy is managed by Crystal’s investment team and focuses on selecting institutional-quality hedge funds that share a common investing approach.

At a Glance

FIRM NAME: Crystal Capital Partners

PRINCIPALS: Steven Brod, George Brod

LOCATION: Miami, FL

AUM: $700 Million

FEE STRUCTURE: 1.5% management fee, no performance fee

MINIMUM INVESTMENT: $250,000

Q. How can your offerings be used in a balanced asset allocation strategy?

A. Our service allows advisors to incorporate a diversified, institutional-quality hedge fund portfolio into a traditional asset allocation mix. Hedge funds have the ability to invest both long and short across the spectrum of asset classes, geographies, and markets, and are increasingly being seen as a way to achieve individual investment objectives in terms of risk-adjusted re-turns, correlations, volatility, diversification, and downside protection.

Q. Why should investors choose your offerings over others in your sector?

A. Our focus is providing advisors with investing and business solutions that will enhance their offering as well as their clients’ portfolios. Our turn-key service allows advisors to resolve barriers of access, research, due diligence, reporting, port-folio execution, tax preparation, and other complexities that exist in the hedge fund industry. With our support, an advisor immediately becomes a full-service alternative investment firm, providing customized solutions for each of their clients and focus-ing their attention and resources on what is most important – servicing their investors.

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