The Abraham Fortress Fund prioritizes the protection and growth of client capital.
Fortress Fund Investment Terms
The Fortress Fund Story
In 2008, Salem partnered with T. Boone Pickens to create the Pickens Abraham Foundation, a scholarship endowment fund for graduating high school seniors in the Texas Panhandle.
In his experience as an investment committee member for endowments and foundations, Salem saw that the portfolios of endowments and foundations have a tendency to do well in good economic times and poorly in bad economic times. For his half of the Pickens-Abraham Foundation, Salem wanted to try to construct a portfolio that was effective regardless of movements in equities, interest rates, or other traditional investment classes. His resulting investment strategy was turned into the Fortress Fund in July 2018, making the strategy available to outside investors. We believe you cannot protect or grow your portfolio without smart diversification and robust risk management. With our team’s unique expertise in alternative investments, the Fortress Fund’s diversified portfolio aims to provide investors with more effective diversification and risk management than one may be able to achieve with only equity and fixed income investments. We believe the Abraham Fortress Fund can be an investment solution for individual investors, family offices, and foundations and endowments.
What does the Fortress Fund aim to provide investors?
An investment portfolio built with the storm in mind
Portfolios should be constructed with the storm in mind. By combining diversified investments and strong risk management principles, we aim to create a portfolio that can withstand tumultuous market periods.
Prioritizes risk management with the aim of protecting your capital
We believe smart portfolio construction starts with thorough risk management. The Fortress Fund aims to balance each asset class in order to reduce the volatility (or risk) of the portfolio. We prioritize lower volatility in an effort to protect client capital.
Opportunities for growth
Our investment strategy aims to provide diversified investment opportunities in an effort to grow your capital.
Investing guidance for a fair price
Some investors are overcharged by investment advisers or consultants, who may have fee arrangements that are complicated and not plainly disclosed. Investment fees should be fair and transparent. With Abraham Trading, smaller investors can access quality investment strategies alongside a team with 32 years of experience. Abraham Trading receives an annual management fee of 0.65% and no incentive fee. The only other fees in the fund are fees charged by the portfolio's hedge funds, of which Abraham Trading does not receive a cut.
The Abraham Fortress Fund aims for better balance and risk management than traditional stock/bond portfolios.
The Fortress Fund uses a multi-asset approach with the goal of producing lower risk, consistent returns. By combining traditional investments in equity and fixed income with diversifying hedge funds and gold, we aim to create a portfolio that prioritizes the protection and growth of client capital.
We use the following principles in the Fortress Fund portfolio.
The Fund aims to provide better balance and stronger risk management in our portfolio compared to traditional stock/bond portfolios. By combining equity and fixed income investments with diversifying investments in hedge funds and gold, we aim to create a portfolio that prioritizes the protection and growth of client capital.
Risk-based asset allocation and market exposure
Some portfolios have equity exposure of 60-80%. These portfolios usually do well when the economy is prospering and poorly when the economy is suffering. In the Fortress Fund portfolio, we generally limit direct equity exposure at 50% in an effort to reduce the portfolio's exposure to extreme moves in equity markets and the broader economy.
Overall, the asset classes in the Fortress Fund portfolio are balanced by risk, not dollar value. We do this in an effort to ensure that no individual asset class exposes the portfolio to an outsized amount of risk.
An important difference between Fortress and typical investment portfolios is the inclusion of diversifying hedge funds in the portfolio. Diversifying hedge funds are an integral part of Fortress’ aim to produce consistent returns with lower risk. Only hedge funds that appear to be resilient through market cycles, that exhibit low correlation to the economy and other strategies, and that operate with high institutional standards are selected for the fund. The fund's portfolio usually includes a small allocation to gold as well.
With our team’s unique expertise in alternative investments, the alternatives portion of the portfolio aims to provide clients with better diversification than they may be able to achieve with only equity and fixed income investments in a personal portfolio. The Fortress Fund is not appropriate for all investors, however. All investment strategies, including the Fortress Fund, involve risk. Please carefully consider your personal financial situation prior to investing.