Neuberger Berman Group has launched the Neuberger Berman Long Short Multi-Manager Fund.
The fund seeks long-term capital appreciation with a secondary objective of principal preservation by allocating its assets to a select group of external hedge fund advisers that employ distinct long short strategies investing primarily in equity securities of companies throughout the world.
Unlike traditional hedge funds, the fund provides daily liquidity, lower investment minimums (USD1,000 for Class A and C shares), and 1099s for shareholders, while offering full transparency of portfolio holdings without a performance-based management fee. It employs the risk management and monitoring, mix of managers and long short strategies, and operational due diligence traditionally available only to institutional and high-net-worth investors through traditional hedge funds.
The fund is managed by members of the Neuberger Berman hedge fund solutions group, including David Kupperman, managing director; Jeff Majit, managing director; Ian Haas, senior vice president; Fred Ingham, managing director; and Eric Weinstein, managing director. The team currently manages the USD630m Neuberger Berman Absolute Return Multi-Manager Fund, introduced in 2012. Overall, Neuberger Berman currently manages over USD42bn in mutual fund assets.
"We believe 'liquid alternatives' – hedge fund strategies in a mutual fund format – can present attractive solutions for investors who have not been able to access traditional hedge funds as well as for defined contribution plan sponsors seeking to provide their participants with a full range of investment options," says Kupperman.
Sub-advisers for the Neuberger Berman Long Short Multi-Manager Fund are: Cramer Rosenthal McGlynn and Lazard Asset Management, both for global long short equities; Levin Capital Strategies for utilities long short investments; SLS Management for equity restructuring long short investments; and Turner Investments for healthcare sector long short.