Strategies
INTRODUCING
KH2 ORIGIN
The KH2 Origin Strategy is designed to identify, support, and scale exceptional portfolio managers with global experience who are committed to building their careers in Israel. Many of these managers have already achieved success abroad and are willing to relocate, bringing world-class expertise and perspectives into the Israeli market.
KH2 Origin works with a targeted group of eight to ten portfolio managers across a range of approaches.
By concentrating resources on a select number of managers, KH2 Origin is able to provide both capital and operational support to help them establish and grow independent investment platforms in Israel.
The KH2 Origin strategy is designed to align incentives between fund managers and investors, establishing a shared foundation for performance and accountability. By creating a structure where success is mutual and outcomes are transparent, KH2 Origin aims to foster sustained growth and long-term value creation for all stakeholders.
SEEDING THE NEXT GENERATION
The strategy is built on several core principles: seed capital is invested directly into the underlying managers’ strategies; investors benefit from capacity rights at preferential fees; and a stop-loss mechanism provides the flexibility to redeem seed capital from underperforming managers. In addition, capital is diversified across managers and strategies, enhancing portfolio resilience and offering uncorrelated return streams through exposure to management fees.
By fostering the development of independent managers, KH2 Origin not only creates a differentiated return profile for investors but also accelerates the evolution of Israel’s financial services ecosystem, laying the foundation for a robust, globally connected hedge fund industry.
INTRODUCING
KH2 MOSAIC
The KH2 Mosaic Strategy is an acceleration platform designed to help small but seasoned Israeli managers achieve scale. While Israel is home to a growing community of talented portfolio managers with established track records, many operate at a sub-scale level that limits their ability to compete globally and fully realize their potential.
KH2 Mosaic provides these managers with the resources, connectivity, and support needed to expand their operations, enhance institutional readiness, and attract larger pools of capital.
INTERNATIONAL BUT LOCAL
Our strategy is performance-focused, enabling proven managers to concentrate on generating returns while KH2 addresses structural barriers to growth. Investors gain exposure to a diversified portfolio of underlying global strategies, spanning equity, macro, quantitative, and other opportunistic approaches - all managed from Israel.
The KH2 Mosaic strategy delivers distinct advantages to investors by combining rigorous sourcing with institutional standards. The platform leverages local and global networks to identify top-tier managers, drawing on reverse inquiries, industry conferences, referrals, and digital platforms to ensure comprehensive visibility into talent.
Each manager undergoes thorough due diligence and is supported by robust operational and investment oversight. Our focus is on seasoned yet sub-scale Israeli managers with consistent performance and disciplined risk management who require the right capital, infrastructure, and connectivity to scale. By accelerating their growth within a professional framework, KH2 Mosaic creates value for investors while advancing Israel’s role in global capital markets.