Altegris Streamlines Managed Futures Strategy To Lower Costs And Increase Diversification

May 23 2017 | 10:07pm ET

Alternative investment manager Altegris has made enhancements to its managed futures strategy in order to lower costs, increase transparency and improve tax efficiency.

The Altegris Managed Futures Strategy Fund has transitioned to an allocation model with investment strategies pursued via direct allocation to managers, the company said in a statement. The step should also improve diversification. 

The fund is an actively-managed mutual fund that invests in financial and commodity futures markets, seeks to achieve positive absolute returns in rising and falling equity markets, and has the potential to dampen portfolio volatility.  Altegris Advisors now allocates fund assets using a simpler and more streamlined process by which multiple managers trade directly for the fund via sub-advisory and trading advisory arrangements, the company added.

The transition does not change management fees but should reduce fund operating expenses and remove imbedded costs and fees associated with the previous allocation method, Altegris said. As a result, the company has engaged seven new managers, including Millburn Ridgefield Corporation, QMS Capital Management, GSA Capital Partners, Crabel Capital Management, Phase Capital, Three Rock Capital Management, and Centurion Investment Management.

"As a pioneer in managed futures delivering diversifying strategies to institutional and retail audiences for over fifteen years, we recognize that transparency, low cost, and improved tax efficiency are of the utmost importance to investors," said Matt Osborne, CIO at Altegris and portfolio manager of the Altegris Managed Futures Strategy Fund. "As a result of these enhancements, we're pleased to offer one of the most competitively-priced multi-manager managed futures funds in the category.

The change comes a few months after the March launch of the company’s Altegris GSA Trend Strategy Fund, a quantitative trend-following strategy.

La Jolla, CA-based Altegris was formed in 2002 and identifies, evaluates, selects and monitors investment talent across a spectrum of alternative strategies including managed futures, global macro, long/short, and event-driven managers.  As of December 31, 2016, Altegris and its affiliates have approximately $2.47 billion in client assets.

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