Context Asset Management Expands Liquid Alt Range With New Fund

Jan 25 2017 | 8:05pm ET

Liquid alternatives provider Context Asset Management has debuted a second alternative mutual fund on its platform.

The new fund, named Context Strategic Global Equity Fund, trades under the symbol CGPGX and is sub-advised by Granite Peak Asset Management, according to a statement. The fund uses a systematic investment process designed to deliver exposure to global developed equity markets while providing downside protection in severely declining markets. 

It primarily invest in developed equity index futures with a risk mitigation overlay and a modest value tilt, the company said. Granite Peak is responsible for the day-to-day management of the portfolio, and is subject to the general oversight of Context Advisers III, LLC, which serves as Investment Adviser.

“Recent market shocks have shown how investing in unprotected risk premia can lead to extreme losses,” said Daken Vanderburg, managing partner and CIO of Granite Peak Asset Management. “Investors and financial advisors need a way to preserve their capital in severely declining markets while still striving to capture the benefits of a developed global equity portfolio, and this fund is designed to do just that.”

“We believe liquid alternative funds should satisfy three simple criteria - provide returns that are differentiated from traditional risk assets, offer a positive asymmetric return profile, and aim to capture an efficient risk-adjusted return,” said John Culbertson, president and CIO of Context Asset Management, in the statement. “Daken and his team fit exactly what we’re looking for in a subadvisor, and they are a strong addition to our network of alternative fund managers.”

“At Context, we believe volatility and quantitative equity-focused strategies are best positioned to offer alpha opportunities in market environments with higher expected inflation and rising interest rate volatility,” continued Culbertson. “Given recent market shocks in the form of Brexit and the U.S. election, we are seeing investors and financial advisors increasingly looking to diversify away from traditional risk assets by allocating to alternative sources of return in investment vehicles that offer daily liquidity.”

Vanderburg spent four years as a senior investment associate for Ray Dalio’s Bridgewater Associates before founding Granite Peak in 2013. Beforehand, he was head of research and a portfolio manager at Chartwell Investment Partners and was CEO of quantitative hedge fund Gamma Capital Partners from 2000 to 2008. 

Headquartered in Bala Cynwyd, PA, Context Asset Management is a division of Context Capital Partners, an alternatives specialist whose subsidiaries offer a diverse range of investment strategies, including hedge funds, liquid alternative mutual funds, and private equity funds. In addition to Context Asset Management, the firm’s business units include Context Jensen Partners, Context Summits, Context BH Capital Management, Context Liberty Bell, Titan Capital Management and Adams Business Credit. Since inception, Context has led hedge fund seed deals totaling more than $400 million.

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