Thornburg Investment Management Unveils First Liquid Alternative Fund

Jan 5 2017 | 10:32pm ET

Thornburg Investment Management has launched a new liquid alternative version of an established long/short equity hedge fund as the asset manager expands its suite of products aimed at advisors and their clients seeking alternative investments. 

The Thornburg Long/Short Equity Fund, became effective on December 30, 2016 and traders under the symbol THLSX, the company said in a statement. It is Thornburg’s first liquid alternative fund.

The new fund is a conversion of a private hedge fund incepted in 2008 and closed on December 29, 2016, the firm added. It invests in long and short opportunities in companies of all sizes, industries and geographies to pursue long-term capital appreciation over a complete market cycle with lower volatility relative to broad equity indices. 

The fund will generally hold about 40 long stocks and around 30 short positions and like it’s hedge fund predecessor, will be managed by Connor Browne, CFA, who also co-manages Thornburg’s Value Fund. Long positions will fit one of three categories: growth industry leaders, consistent growers, and emerging growth companies, while short positions will fall in one of three categories as well: cycle victims, stumbling stalwarts, and falling stars. 

"We saw success in terms of providing good total return and lower volatility with the predecessor private hedge fund and wanted to introduce the same active, focused portfolio strategy in a fund available to the public,” Browne said in a statement. “And, like our other products, the new long/short fund will reflect how we think and invest differently within an important and growing space."

Minimums are $2,500,000 for individual investors and qualifying institutions purchasing for their own account.  For investors purchasing through a fee-based advisory program, the minimum is $100,000, and $2,500 for financial intermediaries purchasing for accounts of others within a wrap program. 

Founded in 1982 and headquartered in Santa Fe, New Mexico, Thornburg Investment Management managed approximately $53 billion as of September 30, 2016 across mutual funds, separate accounts for high-net-worth investors and institutional accounts, as well as UCITS funds for non-U.S. investors. 

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