Innocap

What does it take to maintain your target hedge fund exposure while committing less capital? The mechanism is notional funding. In a Dedicated Managed Account (DMA), the institutional allocator posts collateral and a liquidity buffer, and financing and margin arrangements support the remaining exposure. The efficiency requires a robust operating model behind it, where treasury, collateral management, counterparty oversight and liquidity monitoring all become critical. Amanda Zarrillo, CFA, our Global Head of Treasury, explains how it works in under a minute. Watch now.

How much capital does it really take to obtain the hedge fund exposure you want? With so much of their capital sitting as excess cash in commingled fund structures, institutional allocators are asking if there is a better way to structure their hedge fund investments. Xavier Urli, our Head of Investment Solutions, answers this in under a minute. Watch now.

What can your current fund structure tell you about your Risk Mitigating Strategies (RMS) program today? Not at month-end. Today. A Dedicated Managed Account (DMA) provides daily position-level data. That means institutional allocators can run stress tests, scenario analyses and value-at-risk calculations on their RMS holdings with current data, not data that is weeks old. The difference is practical, not theoretical. With daily position data, an allocator can identify a concentration building in a single manager's book and act the same week, rather than discovering it in a month-end report. For programs where risk mitigation is the entire point, the response time changes outcomes. For more than 25 years, we have built our Dedicated Managed Account Platform around delivering this level of transparency to allocators. In his new article, Innocap President Joshua Kestler covers transparency and the broader structural case for DMAs in RMS programs: https://lnkd.in/dt9z4-XP

In a commingled fund, the asset manager sets their own investment guidelines, from volatility targets to position limits to instrument restrictions. The allocator must accept these terms. In a Dedicated Managed Account (DMA), the allocator defines the parameters. Dynamic volatility targets can be adjusted based on market conditions. Contractual investment guidelines are customized to the allocator's specific risk and return objectives. Daily compliance monitoring confirms whether those guidelines are being respected. For Risk Mitigating Strategies (RMS) programs, this distinction matters. RMS allocations often require tighter parameters than a standard mandate. The ability to set and enforce those parameters at the account level, rather than accepting a pooled fund's terms, gives allocators the precision their programs demand. How much of your current RMS program do you actually control at the guideline level? Innocap President Joshua Kestler explores customization alongside five other structural advantages in a new article: https://lnkd.in/d8SjjcUP

Based on portfolio simulations, a multi-manager Dedicated Managed Account (DMA) structure typically frees US$20 million to US$40 million in capital compared to a commingled fund for every US$100 million in exposure. That capital efficiency comes from two mechanisms: 1. Notional funding: This allows institutional allocators to achieve their desired exposure without fully funding the investment with cash. 2. Multi-manager DMAs: These add cross-margining and netting benefits that reduce the total margin requirement further. For Risk Mitigating Strategies (RMS) programs, where allocators often deploy larger amounts of capital across multiple managers simultaneously, these potential efficiencies can increase. As an example, an allocator running five managers at US$200 million each may be able to materially reduce the cash allocated to margin while maintaining targeted exposures. Across the platform, we see these capital efficiency gains play out daily. Innocap President Joshua Kestler covers the full case in a new article on implementing RMS programs with DMAs.

The bar for human judgement, governance and transparency is rising as the industry moves deeper into AI and automation. That was the consistent signal across panels at GAIM Ops Cayman 2026, the leading global conference for alternative investment operations. Institutional allocators want sharper accountability for what technology produces inside fund operations. Tone at the top remains the differentiator on compliance and cybersecurity. Not all compliance failures end in fraud, but most major frauds begin with one. Transparency expectations now extend to how fund and allocator data flows through AI systems. Formal AI policies, enterprise-controlled solutions and opt-out mechanisms are showing up in due diligence files, not just in policy documents. Cyber defenses fail at the people layer. Phishing simulations and tabletop exercises are proving more useful than penetration testing alone for identifying real exposures. What we see from operating the Innocap Dedicated Managed Account Platform tracks with this. Innocap structures, operates and oversees Dedicated Managed Accounts for some of the largest and most sophisticated allocators globally, with over US$125 billion in assets under management. The platform runs on these disciplines applied daily. Thanks to GAIM Ops Cayman for hosting the conversation, and to Maxime Marton-Kimpton, CAIA from our team for moderating an insightful panel discussion.