Envestnet Offers Long/Short Equity Strategies To RIAs

Aug 24 2017 | 10:49pm ET

A unit of Chicago-based Envestnet is now providing financial advisors with access to a range of alternative long/short equity strategies on the company’s platform through separately managed accounts (SMAs). 

The new offerings allow advisors working with Envestnet’s portfolio management consultants group (PMG) to offer hedge fund strategies for lower minimums and through the use of investment vehicles that can provide greater control, liquidity, and transparency than traditional hedge fund structures, the company said in a statement. 

"With market valuations reaching all-time highs, the timing couldn't be better for bringing institutional-quality hedge fund strategies to financial advisors—at lower minimums and within products that are ideally designed for their clients," said Bill Crager, President of Envestnet in the statement. "Access to boutique managers with strong alpha-generating characteristics enables the Envestnet | PMC team to craft portfolios that have greater potential to deliver alpha-driven, risk-managed returns."

PMC currently offers three long/short equity strategies as SMAs, as follows:

Strategy

Format

Market-Cap Bias

Style Bias

Geographic Focus

AlphaHedge 
HarborWalk 
Long/Short

Single Strategy

Small/Mid Cap

Value

Domestic

AlphaHedge 
Infinitas 
Long/Short

Multi-Manager 
Portfolio

Large Cap

Value

Global

AlphaHedge ISF 
Long/Short

Multi-Manager 
Portfolio

Large Cap

Value

Domestic

 

The SMA’s are held in registered brokerage accounts under the name of the investor, and all securities are directly owned. Investors are free to increase or reduce the capital allocated to their managed accounts at any time, and minimums are generally $250,000 - much lower than the minimums set by the majority of traditional hedge funds.  

"Long/short equity strategies have historically outperformed equity markets since 1990, while reducing downside risk, and we are proud to be able to offer these hedged approaches through the same type of SMA platform that large institutional investors have been able to take advantage of in recent years – but with lower minimums and greater control, liquidity, and transparency for individual investors," added Brandon Thomas, Chief Investment Officer of Envestnet PMC. 

Founded in 1999, Envestnet provides intelligent investment management systems for wealth management and financial advisors. In addition to PMC, Envestnet Yodlee is a data aggregation and analytics platform for cloud-based financial services, Envestnet Tamarac provides rebalancing, reporting, and practice management software for advisors, and Envestnet Retirement Solutions offers an integrated platform with leading practice management technology and fiduciary managed account solutions. The firm counts more than 57,000 advisors and 2,900 companies, including 16 of the 20 largest U.S. banks, 39 of the 50 largest wealth management and brokerage firms, and more than 500 of the largest RIAs, among its clientele. 


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