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The strategies are 1) Asia, especially China and India, 2) Healthcare, and 3) Concentrated "best ideas" stock picking by leading long/short equity managers.

Looking back on 2020, Boardman notes, "This was a historic year of extraordinary social and economic developments stemming from the coronavirus, including a breathtakingly sudden plunge in equity and credit markets, followed by an historically quick rebound." While many investors were dazzled by the performance of leading growth stocks such as Facebook, Amazon and Tesla, Boardman points out that 2020 also was a year of remarkable outperformance by long/short equity hedge funds that were positioned to capitalize on trends and dislocations. "This is especially striking," says Boardman, "given that many investors had become disenchanted with hedge funds during the late stage of the bull market preceding 2020."

Regarding Asia, last year the MSCI Emerging Markets Asia Index was up 28% in US dollar terms. "That was a very good year for the region's markets," notes Boardman, "But Optima is taking the long view. Our strong conviction is that we are entering the Age of Asia. In particular, China and India stand out as the most significant and fast-growing emerging markets not only in the region but the world."

In Boardman's view, key segments of the economies of these countries, especially tech and retail, are undergoing rapid transformation. In order to play the opportunity, Optima relies on a manager with long experience in the region and a deep understanding of the secular growth trends. According to Boardman, "We believe that this is an ideal way to participate in the Age of Asia." He adds, "Because there will be 'winners' and 'losers' along the way, a long/short approach to equities has the potential to add value and take advantage of short-term volatility."

Regarding healthcare, the S&P 500 Health Care Index was up 13.5% and the NASDAQ Biotech Index was up 26% in 2020. Such one-year returns are impressive, but again, Boardman is taking the long view. As he sees it, "The investment opportunities in healthcare and biotechnology are especially exciting due to long-term growth trends which are less sensitive to general economic conditions.

In particular, the sector is being driven by new drug discoveries and treatments, not only for COVID- 19 but in other areas such as gene therapy, immuno-oncology, and orphan drugs."

Boardman has a global view of the sector. "Aside from being a large and dynamic segment of developed economies," he says, "the healthcare sector is an important area of growth in emerging markets, where the demand for services and treatments is expanding rapidly." Furthermore, even after the uptrend in healthcare stocks last year, Boardman believes significant segments of the sector still remain below historic valuations.

As with the "Age of Asia" theme, Optima is relying on a seasoned long/short equity manager who takes an opportunistic investment approach. "You really need strong scientific and business expertise to invest successfully in healthcare. We therefore favor a strategy that combines insights into industry trends with intensive bottom-up, fundamental stock analysis and medical knowledge," explains Boardman. He further elaborates that on the long side there are companies poised to generate superior growth from new product approvals, positive regulatory developments, significant mergers or partnerships, or favorable market dynamics. On the short side, Boardman believes there are opportunities to target vulnerable companies that are under pressure from intensifying competition, lack of innovation, or failed products.

In addition to these regional and sector opportunities, Boardman is focused on long/short equity hedge funds that have demonstrated an exceptional ability to pick stocks. Furthermore, Boardman believes that such managers can add value by concentrating on their "best ideas". This strategy grew out of Optima's three decades of experience in identifying, evaluating and selecting outstanding hedge funds.

For this particular strategy, Optima looks for managers that meet demanding quantitative and qualitative criteria, and who have a performance record driven by superior stock selection. While the theme of the strategy is "concentrated stock picking", Optima includes a mix of investment styles, including growth, value, opportunistic, and event driven. Looking forward, Boardman says, "Our strong belief is that the environment remains highly favorable for managers with superior stock selection capabilities, and who concentrate on high conviction, research-driven investment ideas."

With over thirty years of experience investing in hedge funds, Dixon Boardman has a unique perspective on how to assess opportunities and risks. A pioneer in the field, Boardman launched the highly regarded Optima Group in 1988. Optima manages multi-manager, single manager, and customized hedge fund programs for institutions, family offices, and high net worth individuals. Impressed with the depth and breadth of talent at Optima, FWM Holdings acquired the firm in 2019.

FMW is the parent of Forbes Family Trust, the global multi-family office group which originally managed the wealth of the Forbes family before expanding to other family offices and wealth groups. Today the combined entities manage over $11 billion.

Boardman is bullish on hedge funds. As he puts it, "The bottom line is that hedge funds are back. However, this is not a 'do-it-yourself' hobby. Successful investing in alternatives requires experience and insight. And Optima is committed to honing its skills in this area every day."