Neuberger Berman Launches 2 New Hedge Funds

Feb 19 2014 | 8:27am ET

Neuberger Berman has launched two new hedge funds: the NB Alpha Capture Fund and the NB Unconstrained Bond Fund.

NB was tight-lipped about the Alpha Capture Fund which, according to regulatory filings, launched on February 3 with $100 million and two investors.

The issuer is listed as NB Alternative Investment Management, the firm's fund of hedge funds business.

Asked for further details about the new fund, which carries a minimum investment of $1 million, an NB spokesman told FINalternatives, “We don’t have information to provide at this time.”

The firm was much more expansive on the subject of the NB Unconstrained Bond Fund, issuing a press release on Tuesday about the launch.

The fund “utilizes a broad set of tools to take advantage of market mispricing,” taking both long and short positions.

The “unconstrained” aspect of the fund is that it will not be tied to any benchmark (U.S. T-Bill index) as it looks to capitalize on opportunities worldwide. “The full global credit and securitized spectrum will be utilized and the fund will have complete duration flexibility with the ability to have positive, negative or zero duration,” according to NB.

Fund managers include Andy Johnson, Neuberger Berman's head of global investment grade fixed income; Jon Jonsson, a London-based senior portfolio manager; and managing directors Thanos Bardas, David Brown, Ugo Lancioni and Thomas Marthaler.

"U.S. investors are re-evaluating their fixed income exposures as a traditional benchmark-driven long-only approach comprised primarily of domestic investment-grade bonds may no longer fully meet their objective of stable income with low risk to principal," said Brad Tank, Neuberger Berman's chief investment officer for fixed income.

"We believe Neuberger Berman is in a unique position to introduce an unconstrained bond strategy in a mutual fund structure for U.S. investors, as we have specialist sector teams covering the full breadth of the global fixed income universe and a proven process that the fund's managers will employ to take advantage of market mispricings and allocate risk across global rates, currencies and credit. This fund takes a place among our current fixed-income strategies including short duration, core and strategic income and others."

Neuberger Berman is a 75-year-old private, independent, employee-controlled investment manager with offices in 16 countries and about 2,000 employees. The firm manages equities, fixed income, private equity and hedge fund portfolios for institutions, advisors and individuals worldwide. It had $242 billion in client assets under management as of December 31, 2013.


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