Portland’s Bandon Capital Mgmt Launches Long-Short Mutual Fund

Dec 20 2010 | 8:44am ET

Portland, Oregon-based Bandon Capital Management will launch its first mutual fund, a long-short fixed income vehicle called the Bandon Isolated Alpha Fixed Income Fund.

The long-short fund will launch in early January and will seek to profit from both rising and falling interest rates by taking both long and short positions.

The fund will use two institutional managers: New York-based Dix Hills Partners, a $1 billion firm focused on active duration strategies in U.S. Treasury and other sovereign debt markets and Philadelphia-based Logan Circle Partners, an $11 billion firm focused on absolute return, duration neutral credit strategies.
 
Mutual funds employing hedge fund strategies are a new but growing phenomenon, according to Bandon. This category of funds attracted $12 billion through August 2010. The Morningstar research company has created a new category to capture the trend—the Alternative, long-short category, which currently counts 119 distinct funds, 49 of which have been launched since 2008.
 
“Many investors have recently fled their core fixed income allocations in favor of floating rate investments, high yield bonds, and or dividend paying stocks,” said Bill Woodruff, Bandon founder and president. “We view these as significant asset allocation decisions and are looking to provide a new and innovative option to investors looking to reduce the buy and hold risks within their fixed income portfolios.
 
“It appears the 30-year bull market for bonds may be coming to an end and we believe that allocating to fixed income strategies like ours, that have an absolute return orientation, could prove to be timely.”

 


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR