Neuberger Berman Group has launched the Neuberger Berman Absolute Return Multi-Manager Fund, which seeks capital appreciation with an emphasis on absolute returns by allocating its assets to multiple hedge fund advisers that employ distinct alternative investment strategies.
The Fund is the first such fund from an asset manager with the size and operational infrastructure of Neuberger Berman.
The Fund is managed by members of the Neuberger Berman Fund of Hedge Funds (FoHF) team and is the first time this team’s expertise is offered in a mutual fund. Unlike traditional hedge funds, the Fund provides daily liquidity, lower investment minimums (USD1,000 for Class A and C shares), will deliver 1099s to shareholders, offers full transparency of portfolio holdings and does not have a performance based management fee. Additionally, the Fund employs the risk management and monitoring, mix of managers and strategies, and operational due diligence previously available only to institutional and high-net-worth investors through traditional hedge funds. The Fund combines an experienced Hedge Fund of Funds team with a firm that has been providing mutual fund solutions for over 60 years.
The Fund is managed by a seasoned team with a 10-year track record of serving the needs of institutional and high net worth investors. The team includes Eric Weinstein, chief investment officer and managing director; Jeff Majit, managing director; Fred Ingham, managing director; David Kupperman, PhD, managing director; and Ian Haas, senior vice president.
Kupperman says: "We are strong believers that alternative mutual fund solutions–‘liquid alternatives’–are applicable to investors who have historically not been able to access hedge fund strategies as well as institutions that seek liquid and cost-effective solutions. We see a future where defined contribution plans embrace alternative investments in providing 401(k) plan participants a full investment solution."
The Fund’s sub-advisers are: The Boston Company for long/short and mid-cap equities; Cramer Rosenthal McGlynn for global long/short equities; GAMCO Asset Management for merger arbitrage; Levin Capital Strategies for event driven investments; Sound Point Capital for distressed and event driven credit; Turner Investments for long/short healthcare equity; and Visium Asset Management for event driven investments. The Fund has also hired MacKay Shields as a sub-adviser for long/short credit arbitrage and intends to begin allocating assets to this manager when the Fund has approximately USD125 million in assets. The Fund expects to add additional highly skilled hedge fund managers in the future.
"We are very excited to launch a fund that will offer the liquidity and accessibility of a mutual fund and the underlying investments of hedge fund strategies, all with the goal of providing attractive returns for investors," says Eric Weinstein, chief investment officer and managing director of NB Alternative Investment Management LLC. "The fund is a well-constructed portfolio of high quality managers. We believe alternative investments can play an important role alongside long-only equities and fixed income and we are delighted to offer these strategies in a mutual fund structure."
The Neuberger Berman FoHF team that advises the Neuberger Berman Absolute Return Multi-Manager Fund currently provides discretionary and advisory services for institutional and hedge fund client’s assets in excess of USD3bn.