Bandon Capital Unveils Absolute Return Fund

Sep 23 2010 | 4:53pm ET

Portland, Oregon-based Bandon Capital Management has launched a new alternative investment fund.

The new vehicle—the Bandon Absolute Return Core fund—is a liquid, multi-strategy investment platform that provides diversified alternative exposure in a single separate account, available to both accredited and non-accredited investors.

According to the firm, the strategy provides equal exposure to Bandon’s two single strategy liquid alternative investment approaches in one, single account—Bandon’s Directional Interest Rate Strategy, which is an active duration, absolute return strategy focused on U.S. Treasury securities, and the Bandon Hedged Equity strategy, which is a long-short equity strategy comprised of a concentrated, high-conviction long portfolio and a broad market hedge.

The new Absolute Return Core strategy offers daily liquidity, transparency, a low minimum investment of $75,000 and 1099 tax reporting. The strategy is offered predominately as a separately managed account but is also available as a Unified Managed Account and in sub-advisory relationships.

“It became clear to us that advisers wanted one, all purpose alternative strategy in a convenient delivery vehicle, much the way a fund of hedge funds provides diversified alternative exposure to significantly larger investors. Given the diverse nature and low correlation of our two single strategies, they combine to provide compelling alternative exposure, while maintaining low correlation to traditional equity and fixed income benchmarks” said Bill Woodruff, Bandon’s founder and president.

Bandon has been managing accounts in the Absolute Return Strategy since December of last year and is up 3.32% year-to-date through August versus -6.58% for the S&P 500 and -0.30% for the HFRI FoF index.

“Advisers and investors continue to be wary of long only strategies and are keenly attuned to downside risk and the high correlation among markets. Absolute return strategies that protect capital and are not dependent on traditional market movements to generate positive returns are increasingly becoming an important part of investor portfolios,” Woodruff.


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