American Century Launches New Multi-Manager L/S Equity Liquid Alt Fund

May 25 2016 | 8:48pm ET

American Century Investments has launched a new multi-manger long/short equity fund as a liquid alternative instrument. 

The new fund, named AC Alternatives Long Short Fund, is the firm’s second multi-manager fund to be launched under the AC Alternatives brand. It uses an open architecture subadvisor approach to access experienced, specialized managers who employ differentiated approaches to long/short equity investing. 

The company launched its first liquid alternative fund under the AC Alternatives brand last July, with the AC Alternatives Income Fund. As with the first fund, American Century has again engaged Perella Weinberg Partners Capital Management as the new fund’s investment manager. 

Perella Weinberg will also identify and recommend other underlying subadvisors with expertise in specific strategies. Those subadvisors include Passport Capital, Sirios Capital Management, Three Bridges Capital and CMIA Seligman. Perella will supplement those strategies with its own tactical and opportunistic adjustments to the portfolio or overlay in an attempt to either reduce risk or increase exposure to certain asset classes expected to benefit from certain market conditions. 

“The addition of AC Alternatives Long Short to our suite of liquid alternatives solutions reflects our commitment to meeting the evolving needs of our clients,” said Cleo Chang, senior vice president and head of alternative investments for American Century, in a statement. “We believe long/short strategies can play an important role in a diversified portfolio by providing the potential for more consistent returns over a full market cycle, while striving to reduce volatility.” 

AC Alternatives Long Short has been managing seed capital since October 15, 2015 and will have an official inception date of October 30, 2015, the company said. The fund is available in six share classes, including an Investor class which trades under the symbol ALEVX. 

The new fund joins a suite of AC Alternatives liquid alternative funds, including AC Alternatives Income, AC Alternatives Equity Market Neutral and AC Alternatives Market Neutral Value. 

Founded in 1958, Kansas City, MO-based American Century Investments is a privately held investment management firm that offers a wide variety of mutual funds, institutional separate accounts, commingled trusts and sub-advisory accounts. 


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