Barrow Street Advisors has launched the Barrow All-Cap Core Fund and the Barrow All-Cap Long/Short Fund, the investment advisor’s first mutual fund offerings.
The Barrow All-Cap Core Fund is the successor to Barrow Street's flagship US equity offering, Barrow Street Fund. This limited partnership had only been available to accredited investors since its formation in 2008.
Barrow Street organised the Barrow All-Cap Long/Short Fund to succeed a private limited partnership managed using the advisor's long/short strategy. Now a broad range of investors can enjoy access to both of these strategies through registered, no-load investment funds.
The funds are managed by the firm's co-founders, Nicholas Chermayeff and Robert F Greenhill, Jr. Prior to forming Barrow Street, Chermayeff was an investment professional in Morgan Stanley's principal investment group for the Morgan Stanley Real Estate Funds and Greenhill was an investment professional for the Goldman Sachs' Whitehall Funds.
"We formed our mutual funds to offer investors of all sizes access to our investment strategies," says David R Bechtel, a principal at Barrow. "Our distribution focus for the funds will be the financial advisor, family office, and trust channels."
Each fund employs Barrow Street's proprietary Systematic Quality Value (SQV) approach, which assesses a company's relative quality and value based on key fundamental factors. Using disciplined portfolio construction techniques, the SQV approach aims to mitigate risk through diversification across companies, market capitalisations, and industry sectors. Barrow's long/short strategy follows the same approach with its long positions, and further seeks to reduce volatility and attempts to preserve capital during market downturns by shorting stocks which Barrow believes are of low quality and poor value.
"We believe that systematic investment in high quality companies where there is a large Margin of Safety+ has the potential to generate above-average returns with below-average risk," says Chermayeff. "With almost five years of performance data behind it, investors can evaluate how the Barrow All-Cap Core Fund's track record and investment process stack up against the competition. I think they'll be impressed."