Columbia Management Unveils Liquid Alternatives Fund

Jan 29 2015 | 7:38am ET

Columbia Management has launched a liquid alternative fund aimed at providing retail investors access to a diverse portfolio of alternative investments.

The Columbia Adaptive Alternatives Fund is structured as a mutual fund with daily liquidity and multiple share classes, but unlike most mutual funds it offers investors access to a Blackstone-advised multi-strategy fund with underlying hedge fund advisers. It also provides access to alternative beta strategies and non-traditional asset classes including commodities, REITs, inflation-linked bonds and listed private equity managed by Columbia Management.

The fund is managed by Jeffrey Knight, William Landes, and Marc Khalamayzer.

According to the firm, the structure of the fund provides several benefits,  including “access to a wide array of alternative investments and strategies selected by two leading investment firms packaged in a daily liquidity mutual fund, return opportunities designed to be uncorrelated to traditional asset classes – stocks and bonds – and the diversification benefits of alternative investment strategies.”

“Alternative investments offer the potential to increase portfolio diversification by generating returns that are uncorrelated to traditional stock and bond markets. We are excited to bring investors a daily liquid alternative mutual fund powered by the hedge fund expertise of Blackstone and the alternative investment expertise of Columbia,” said Bill Landes, portfolio manager and deputy head of global investment solutions at Columbia Management.

John McCormick, global head of strategy for Blackstone’s hedge fund solutions platform, added, “The Blackstone fund, in which the Columbia Adaptive Alternative Fund indirectly invests, leverages our extensive experience building custom solutions for sophisticated institutional investors. We at Blackstone are confident that we have identified hedge fund strategies and managers that translate well into a multi-manager solution in a 1940 Act framework. Investors will benefit from Blackstone’s  manager due diligence procedures,  top  down  asset  allocation  views  and  ongoing portfolio management capabilities.”


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