Funds
Getting Ahead of the Game
Eharo Funds – investment philosophy
Opportunistic
Artificial Intelligence has the potential to change the landscape of all assets. Those who identify the right opportunities in the market can capitalize on potentially highly profitable investments.
Core
Eharo’s core strategy revolves around Artificial Intelligence and related investments with a long-term positive outlook. Our industry-leading research team rigorously assesses investments, striving to build a diversified portfolio to achieve the highest risk-adjusted returns over a five to ten-year time horizon.
We are bullish on AI-related investments and assets as a whole, constantly searching for immense new opportunities and solutions that AI can provide. Over the last five years, this space has grown massively, and that trend will continue for the long term.
Stable Growth while Protecting Against Downside Risk
Artificial Intelligence-driven investments are a high-growth investment class. Highly specialized, focused managers like Eharo are positioned to research, track, and evaluate their performance compared to other investments. Eharo will strive to protect these investments against downside risk and seize opportunities to maximize returns. We have designed multiple unique diversifications in our portfolios to protect against downside risk. The key is creating stable returns while protecting against risk.
Eharo’s investments are diversified by segment. Upon analyzing historical performance, we use loss rate data to adjust the risk profile of our portfolio for investors and reduce exposure to any industry bubble. Our investment vehicles offer protection through diversification by leveraging specialized expertise.
Long-term investment strategy
Tenaciously applying a long-term investment horizon over the multi-year life of the funds optimizes portfolio return on capital as investments progress from early-stage to enhanced valuation.
Venture Capital
Getting Ahead of the Game
Eharo VC Anchoring and GP Staking Emerging Manager Fund is one of the first institutional-grade investment funds of its kind in this space, allowing us to build knowledge for future market opportunities. Although the current versions of Artificial Intelligence and related technologies are predominantly limited to a small set of assets and applications, the groundwork is being laid for broader applicability.
Too early to call out the winners
In an early-stage industry, the winners have yet to be definitively determined. For Artificial Intelligence, it is too early to call out the true winners who will become market dominators, monopolists, and unicorns. Therefore, to invest in this space now, the preferred investment approach for institutional investors and other professional investors is as broad a diversification as possible.
Diversification
Diversification through a multi-strategy fund with hundreds of underlying investments reduces overall portfolio risks. Diversification is accomplished using a single-parent fund spanning many verticals.
Diversification encompasses asset classes, industries, creators, geographic locations, management expertise, and investment stage variations. It reduces underperformance risks from undefended concentration, correlation, reliance on the decision-making style of any one manager, negative selection bias, and investment selection.
A multi-strategy approach can lower total investment costs below the subscription amounts required when making multiple individual fund investments at their minimum participation thresholds.
Scalability of investments
Through our fund strategy, investors may scale up or down their fund participation. Scaling up means investing in a larger number of funds and those requiring large minimum investments by pooling funds with other participating investors. Scaling down means an investor with more capital can spread their direct fund investment over a greater variety of direct funds within the fund of funds, investing less in each individual fund.
Due diligence, fund selection, and monitoring
Fund selection is accomplished through a rigorous due diligence process that includes an evaluation of risks unique to Artificial Intelligence assets. A multi-strategy approach leverages the wide range of expertise of multiple investment managers specializing in particular asset classes, industries, sectors, and geographic locations.
After we complete due diligence and commit investment capital to selected strategies, we actively monitor these allocations to ensure that our fund performance goals are on track for ultimate achievement.
Private Equity
Getting Ahead of the Game
Eharo Buyout & Growth Europe Fund is a private equity investment fund built on Eharo’s knowledge of AI-driven future market opportunities. Although current artificial intelligence applications are still in their infancy, the groundwork is being laid for their broader applicability to the economy. The most significant impact is expected to be in the financial and professional services sector.
Early adopters to be the winners
In early-stage technological breakthroughs, the winners in each sector have yet to be definitively determined. For the service industry, early adopters of these technologies will drive consolidation and growth, with the laggard ones on the losing end.
Due diligence, acquisition, and monitoring
Portfolio company selection is accomplished through a rigorous due diligence process that includes an evaluation of risks and opportunities unique to the Artificial Intelligence business opportunity. A multi-level approach to the operational and technological expertise of the Eharo team will drive actual value creation at the asset level.
Eharo Ltd (FRN 971072) is an appointed representative of Brooklands Fund Management Limited (FRN 757575) which is authorised and regulated by the Financial Conduct Authority.