Dalton, Greiner To Launch 130/30 Fund

Jul 26 2007 | 8:15am ET

Asset manager Dalton, Greiner, Hartman, Maher & Co. is making its first foray into the 130/30 space with the launch of its DGHM 130/30 LP fund in October.

“There’s been a lot of demand and, I think, a lot of supply within the pension fund space for 130/30s,” said Donald Porter, analyst. “The idea here is that we’ve got an all-cap long-only product and we’re going to take that product and invest it 130%. We’re also going to take our shorts that we have in our hedge fund, Enhanced Value, and we’re going to short 30% of the 130/30. One of the value-adds that we offer is that we have real shorting experience so the returns we’re showing investors are actual returns.”

The firm’s hedge fund, which started trading in April 2002, has achieved annualized returns of 9.3% net with a 6% standard deviation, according to Porter. It is currently managing some $60 million in assets.

Porter added that another value-added proposition for investors is the fact that the firm uses fundamental analysis in its securities selection, which he doesn’t think is prevalent among other shops currently offering 130/30 strategies. In addition, the firm will also offer institutional investors who would rather invest in a 140/40 or a 120/20 strategy the ability to do so in separately managed account formats. “So we’re trying to be as customized as possible to meet the demands of potential prospects,” he said.

However, he stressed that this is not really a hedge product that will save investors in a down market. “What it’s designed to do is increase investors’ returns with a little bit more risk. We’re able to get about 100 basis points more in returns from our long-only product while increasing the standard deviation by about 10 basis points,” he said.

DGHM 130/30 LP charges a management fee of 1% and incentive fees of 20% above a Russell 3000 hurdle. Individual investors can invest with a $500,000 minimum investment requirement while separate account investors are charged a $5 million minimum. The product is collectively managed by the firm’s team of 10-sector focused analysts.

Dalton, Greiner is a subsidiary of Boston Private Financial Holdings and currently manages some $2 billion in hedge funds and long-only products.
 


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

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.