Northwater Launches Two Portable Alpha Products

Apr 3 2007 | 11:51am ET

Northwater Capital Management has added two new portable alpha products to its lineup of institutional products: The Northwater Portable Alpha U.S. Bond Fund and the Northwater Portable Alpha U.S. Equity Fund.

Both vehicles are structured as portable alpha offerings, with investors choosing a targeted market index exposure in their choice of fund—either the Lehman Aggregate Bond Index for the bond fund or the Standard & Poor’s 500 for the stock fund.

The active management source for each of the new funds comes from Northwater’s market-neutral fund of hedge funds portfolio. The new vehicles target a return of 275 to 475 basis points, net of fees, in excess of the respective market index.

“These new funds let investors access our extensive experience in managing portable alpha mandates, but with the ease of accounting, reporting and performance attribution that a pooled fund structure provides,” says Bob Kulperger, vice president of Northwater.

“Large-cap equities and bonds make up a large portion of most institutional investors’ portfolios, but traditional active management typically delivers only modest value-added returns compared to the benchmark indices,” says Kulperger. “These new funds are turn-key solutions that target a much higher alpha and are designed to add significant value to market index exposures.”

Northwater has over $9 billion in assets under management and currently manages 27 portable alpha accounts. The firm has $4.4 billion of its assets in its market-neutral fund of hedge funds, almost all of which is used in portable alpha structures.


In Depth

High Time For A Cannabis Hedge Fund?

Sep 30 2014 | 7:07am ET

Launching a hedge fund is always a gamble, but Leslie Bocskor's decision to launch...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.