361 Capital, a liquid alternative investments firm focused on providing institutional quality mutual funds, has launched the 361 Global Long/Short Equity Fund, sub-advised by Los Angeles-based Analytic Investors.
The Fund uses the same investment strategy as the Analytic Global Long/Short Equity Composite, which commenced December 2009. The Fund also launched with an existing 11-month track record following the reorganisation of the Analytic Global Long/Short Equity Fund, LP, a limited partnership that has been operating since January 2014.
“Long/short equity is the largest category in Morningstar’s classification of alternative mutual funds, but there is currently a shortage of quality funds with track records,” says Tom Florence, President and CEO of 361 Capital. “By partnering with a proven manager like Analytic Investors, we are able to meet a real need in the marketplace.”
Based on proprietary research, the 361 Global Long/Short Equity Fund brings an innovative approach to long/short investing. Analytic Investors employs a low volatility methodology in selecting securities, based on research which shows that over time, stocks with higher betas do not outperform stocks with lower betas. The Fund manager will also actively short high beta stocks that they believe will underperform the market.
“At 361 Capital, our focus is to bring the best products to advisors and their clients, whether that's developed internally or sub-advised by another high-quality alternatives investment manager,” says Florence. “With its impressive track record and its quantitative, research-driven approach, Analytic Investors is helping 361 Capital bring a product to the long/short equity category that has the potential to produce alpha through both the long and the short side of the portfolio.”
“Sub-advising this Fund for 361 Capital allows us to reach a wider audience of advisors and their clients, beyond the institutional investors we traditionally work with,” says Harin de Silva, PhD, CFA, President and Portfolio Manager of Analytic Investors. “Having worked with the 361 management team before, we are confident they will be able to execute on their plan to grow this Fund.”
The Fund will seek to achieve long-term capital appreciation. The Fund also seeks to preserve capital in down markets.
The 361 Global Long/Short Equity Fund is the first of a series of funds the firm plans to offer that will be sub-advised by single managers. It follows the launch of two new internally-managed mutual funds, 361 Global Managed Futures Strategy Fund and 361 Global Macro Opportunity Fund, in the last five months. In addition, effective November 1, all Class A shares of 361 Capital’s funds have been re-designated as Investor Class Shares. The Investor Class shares are not subject to a front-end sales charge or a contingent deferred sales charge.