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Forward Management launches alternative strategy mutual fund


Forward Management has launched the Forward Tactical Growth Fund, a mutual fund designed to capitalize on market inefficiencies while actively managing downside volatility.

Forward Management has launched the Forward Tactical Growth Fund, a mutual fund designed to capitalize on market inefficiencies while actively managing downside volatility.

The fund allows investors access to a long/short tactical strategy that strives to participate in the upside of the market while limiting the downside.

Tactical equity exposure is used to manage risk and enhance alpha and the portfolio can be long, short or neutral on the market.

The fund is available in investor, institutional and C share classes and is sub-advised by the investment team at Broadmark Asset Management. Broadmark also partners 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,’ says J. Alan Reid, chief executive of Forward. ‘We are excited to bring mutual fund investors access to a tactical strategy of this calibre.’

The fund’s investment objective is to produce above-average, risk-adjusted returns, in any market environment, while exhibiting less downside volatility than the S&P 500. The fund’s investment process is designed to evaluate individual securities, sectors and entire markets to determine if they are over- or undervalued, and accordingly to take both long or short positions as a result of their analysis. The fund will attempt to accomplish this by primarily investing in exchange-traded funds and futures, while using Broadmark’s 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 per cent net long to 100 per cent net short in its portfolio.

Broadmark believes that portfolio risk and return can be enhanced with a strategy that is not required to be long only and fully invested, and that stock market risk can be addressed. Its investment management approach is research-driven, and employs a qualitative top-down analysis combined with quantitative risk management. In attempting to achieve this objective, the fund will invest in both US and non-US securities, primarily ETFs and futures.

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