Forward Management Launches Hedge Fund-Like Mutual Fund

Sep 14 2009 | 12:20pm ET

San Francisco-based Forward Management has launched a new mutual fund that employs hedge fund strategies. 

The new vehicle, the Forward Tactical Growth Fund, aims to capitalize on market inefficiencies while actively managing downside volatility. According to a statement from the firm, “it allows investors access to a long/short tactical strategy that strives to participate in the upside of the market while limiting the downside.”

The Forward Tactical Growth Fund is available in investor, institutional and C share classes and is sub-advised by the investment team at Broadmark Asset Management. Broadmark has also partnered with Forward to offer a similar strategy for Forward in separately managed accounts.

“We have found a partner whose track record over the past six years offered compelling performance while helping to limit the downside,” said J. Alan Reid, CEO of Forward. “We are excited to bring mutual fund investors access to a tactical strategy of this caliber.”

The new fund will invest primarily in ETFs and futures, while using Broadmark’s proprietary, multi-factor process to identify investment opportunities over time. The fund may use leveraged investment techniques as well as short positions on target securities which allow the fund a net exposure which can range from 120% net long to 100% net short in its portfolio.

“We are seeing advisors migrate to products that manage risk and enhance alpha by having the flexibility to be long, short or neutral on the market. We believe the Forward Tactical Growth Fund offers a unique solution for investors seeking tactical equity exposure,” said Jeff Cusack, president of Forward Management.


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