Wednesday, 30 July 2014
Last updated 11 hours ago
Nov 1 2013 | 10:15am ET
Stamford, Conn.-based alternative investment firm Barrow Street Advisors has launched its first two mutual funds.
The Barrow All-Cap Core Fund is the successor to the flagship Barrow Street Fund, a U.S. equities offering, which was founded in 2008, has returned 20.44% since inception and is up 24.9% YTD.
The Barrow All-Cap Long/Short Fund will succeed a private limited partnership managed using Barrow's long/short strategy.
The no-load funds will be managed by Barrow co-founders Nicholas Chermayeff, formerly of Morgan Stanley, and Robert F. Greenhill, Jr., formerly of Goldman Sachs.
“We formed our mutual funds to offer investors of all sizes access to our investment strategies,” said David R. Bechtel, a Barrow principal. “Our distribution focus for the funds will be the financial advisor, family office, and trust channels.”
Each fund employs Barrow Street’s proprietary systematic quality value approach, which assesses a company’s relative quality and value based on key fundamental factors. Utilizing disciplined portfolio construction techniques, the SQV approach aims to mitigate risk through diversification across companies, market capitalizations, and industry sectors.
Barrow’s long/short strategy follows the same approach with its long positions, and further seeks to reduce volatility and attempts to preserve capital during market downturns by shorting stocks which Barrow believes are of low quality and poor value.
“We do not try to time the market or use cash defensively,” said Greenhill in a statement. “Since our approach avoids emotional responses to market volatility, we believe these funds may be a smart choice for an investor’s long-term portfolio.”
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…