American Century Investments has expanded its suite of liquid alternative investment strategies with the AC Alternatives Disciplined Long Short Fund, which is aimed at clients and investors who are seeking equities with potentially lower volatility.
"AC Alternatives Disciplined Long Short is a welcome addition because it's another way to help clients strive to mitigate risk in their portfolios," says Cleo Chang (pictured), senior vice president and head of alternative investments for American Century Investments. "We also believe long short strategies can provide important diversification with the potential for more consistent returns over a full market cycle."
The fund is the sixth offering in the AC Alternatives line-up, a brand launched by American Century Investments in 2015.
The fund, formerly known as Disciplined Growth Plus and launched in 2011, has been redesigned to be a long short equity product with a variable net exposure to equities that will typically range from 30 per cent to 70 per cent.
It will continue to follow the same investment philosophy with modifications around the amount of the fund that can be long or short, based on a dynamic, market-exposure model. Exposure decisions incorporate short-term market forecast models that have been employed within the firm for decades, enhanced with longer-term market forecasting tools.
Previously, Disciplined Growth Plus was a 130/30 fund with 100 per cent net exposure to equities.
"We revamped the fund to adapt to changing market dynamics and client preferences," said Chang.
The fund is available in Investor (ACDJX), Institutional (ACDKX), A (ACDQX), C (ACDHX) and R (ACDWX) share classes.
AC Alternatives Disciplined Long Short is managed by chief investment officer, multi-asset strategies & disciplined equity Scott Wittman, and vice president and portfolio manager Yulin Long.
Wittman, who is a senior vice president and senior portfolio manager, joined the firm in 2009. He oversees the portfolio management teams responsible for the company's disciplined equity and multi-asset portfolios. He serves as a member of the investment oversight committee, products & markets committee and the investment management senior leadership team. Prior to joining American Century, he was managing director, quantitative and alternative investments for Munder Capital Management. He also served as president and chief investment officer for Vantage Investment Advisors. Other investment experience includes roles with TSA Capital Management and Mellon Bank.
Long joined American Century in 2005. Previously, she was an analyst for the firm. Prior to that, she worked for Cornerstone Research, conducting financial and accounting analysis.