SOURCE: HNW Alternative Investments, LLC

January 13, 2010 10:10 ET

HNW Alternative Investments Launches Turnkey Alternative Investment Program (TAIP)™

CustomHedge Provides Customized SMAs Using Institutional Hedge Fund Managers

NEW YORK, NY--(Marketwire - January 13, 2010) - HNW Alternative Investments, LLC announced today the launch of its turnkey alternative investment program, or TAIP™, specializing in building tailored portfolios through registered investment advisors, family offices, broker-dealers, Certified Public Accountants and TAMPs. Its first offering is CustomHedge Portfolio Services, which uses an intense analytical process to first determine client needs and then provide customized separately managed accounts (SMAs) to optimize the portfolio using world-class institutional hedge fund managers.

"Our mission at HNW Alternative Investments is to help advisors and qualified investors create more efficient portfolios," says Ed Butowsky, co-founder of HNW Alternative Investments. "Our turnkey solution is an extension of the advisor's practice; we are their alternative investment 'department.' We target better returns with less volatility, providing complete transparency, on-going monitoring and monthly valuations. CustomHedge broadens an advisor's level of expertise using alternatives as part of their overall asset allocation strategy."

The firm's CustomHedge offering currently provides access to more than 47 of the top-rated 50 hedge funds in the United States, as ranked by Barclays. It enables advisors to outsource alternative investment asset allocation, due diligence, manager selection, portfolio construction and performance reporting. CustomHedge provides advisors with customized analytics on manager performance, investment philosophy, historic correlation and style consistency.

HNW Alternative Investments seeks to help investors potentially raise the Sharpe Ratio on their portfolios. The Sharpe Ratio allows investors to basically score how much risk they are taking in exchange for the return they expect to receive.

Key benefits of the CustomHedge turnkey solution include:

--  Custom Advisory Services. Customize allocations to client specific
    investment objectives and exposure, while complementing existing
    portfolios, providing unbiased strategy allocation and quarterly client
--  Access to Top Hedge Fund Talent. Institutional quality hedge fund
    exposures. Ongoing fund performance monitoring and due diligence
--  Ongoing Training Program. Asset managers receive thorough training on how
    to use all aspects of the TAIP to better measure and manage portfolio
--  Individual Segregated Portfolios. Separately managed account structure
    allows portfolio customization, independent liquidity and reduced
--  Low Investment Minimums. Institutional access for qualified investors.
--  Consolidated K-1 Reporting. Customizable reporting features including
    annual consolidated K-1 returns.

"We've developed a way to educate and help advisors understand how much volatility they're taking in their client's portfolios," says Todd Taylor, co-founder of HNW Alternative Investments. "Our turnkey alternative investment program isn't intended to substitute a client's portfolio, but rather to improve the efficiency of their existing portfolio. We are portfolio 'Sharpeners.'"

Butowsky added, "The world of personal investing is filled with a bewildering mix of half truths and conflicts of interest. Over the last 10 years, the long-only world of investing has become so highly correlated that it's impossible to have an efficient portfolio without alternative investments. The only way to optimize performance is to incorporate investments with varying levels and types of risk. CustomHedge has been designed solely with this in mind. We seek to give advisors the knowledge and tools they need, as well as ongoing training, to better structure portfolios in all market environments."

HNW Alternative Investments, headquartered in New York, currently has a regional sales office in Dallas, and is actively recruiting professional talent. For more information on this effort, please contact Ed Butowsky at

For media inquiries to request more information on HNW Alternative Investments, or to speak with Ed Butowsky and Todd Taylor, please contact Carol Graumann at (973) 732-3521 or

About HNW Alternative Investments

HNW Alternative Investments, LLC is an investment advisor providing the industry's first turnkey alternative investment program (TAIP)™ for advisors serving high net worth clients. Using a proprietary analytical process, it seeks to create more efficient portfolios with higher Sharpe Ratios. Through CustomHedge Portfolio Services, it creates tailored separately managed accounts with access to more than 47 of the top 50 hedge funds in the United States. By "making portfolios Sharpe," HNW Alternative Investments acts as an extension of an advisor's practice, broadening their expertise and complementing existing portfolios for better returns with less volatility.

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