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private equity > fund of funds > portfolio construction

Fund of Funds investing philosophy investment criteria portfolio construction fund relationships Direct Co-Investments investing strategy dedicated funds investment criteria portfolio of investments Customized Programs The Ohio Capital Fund background minimum qualifications for consideration evaluation matters contact us Investment Team	We structure our funds of funds and allocate fund investments such that each underlying fund commitment makes up a sizeable enough position in each fund to have a meaningful impact on the overall return of the portfolio. Portfolio construction within the constraint of our approach emphasizes balance and diversification across multiple dimensions. We believe this level of diversification, considering correlations between our fund investments, will create a balanced portfolio to effectively manage risk while not impairing returns. Our funds typically invest in approximately 25 private equity funds to achieve balance across key diversifiers. FW Capital emphasizes risk management through strategic portfolio diversification Diversifiers Commentary Diversification Benefit1 Style (Buyout/VC) Key diversifier given low historic correlation between buyout and venture capital returns High Vintage Year Effective means to lower portfolio volatility without sacrificing returns over the long-term High Industry Sector Strategic industry sector selection can enhance returns while reducing portfolio volatility High Investment Stage Diversification can be achieved by balancing small/mid/large buyouts and early/late stage venture capital Moderate Geographic Region Moderate correlation between geographic location limits diversification benefits; more important for buyouts Low - Moderate 1 FW Capital internal analysis of relative benefits of diversification by type		Quick Links -- please select -- Corporate Leadership Contact Us Media Center Sitemap Related Links Investing Environment by John O'Connor 1Q2008 (PDF: 277k) Investing Environment by John O'Connor 4Q2007 (PDF: 298k) Investing Environment by John O'Connor 3Q2007 (PDF: 255k) Investing Environment by John O'Connor 2Q2007 (PDF: 220k)

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