CMG Capital Management Group has launched the CMG Global Equity Fund with a portfolio comprised of 50 global stocks that the firm believe demonstrate consistent earnings, financial strength and a track record of stable management.
The fund includes a risk management overlay strategy that attempts to identify periods of high risk in global equity markets and hedge equity exposure though active volatility management.
The fund stock selection is based on research from Absolute Return Partners, a London-based investment management firm. The equity investment process follows an eight-stage empirical method of identifying and rating the relative economic quality of 35,000 companies across 150 countries. CMG has selected AlphaSimplex Group as the sub-adviser responsible for the fund’s active volatility management. Dr. Andrew Lo and Dr. Alexander Healy of AlphaSimplex Group will serve as portfolio managers.
"We will select 50 global companies that we believe present the highest investment potential and manage that portfolio with a notable stock selection and risk management team," says Steve Blumenthal, chief executive of CMG Capital Management Group. "We believe this is a time of profound uncertainty when tactically managed mutual funds, with proper risk management, can help smooth out turbulence and attempt to capture upside potential. This Fund seeks to give retail investors a global perspective to equity investing, with the expertise of AlphaSimplex Group and Absolute Return Partners."
"For almost a decade now, the equity selection model has demonstrated an ability to identify high quality companies from all over the world. Some of the current portfolio constituents, such as Apple, are very well known companies whereas others are largely unknown to the public. We believe that one of the great advantages of the model approach is its ability to identify lesser known companies that share the ‘corporate DNA’, as we define it, with Apple and other strong global brands — i.e. superior earnings strength, strong balance sheet and cash flow and a proven ability to repeat the strong financial performance year after year," says Niels Jensen, managing partner of Absolute Return Partners.
The fund will be available to investors in two share classes: Class A shares (GEFAX) and Class I shares (GEFIX). The fund is available on all major brokerage platforms including Fidelity/NFS, Pershing, Schwab, TD Ameritrade and Trust Company of America.
