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Alternative Market Briefing

Multi-asset funds gaining traction with investors

Friday, February 03, 2012

amb
Dominic McCormick
Bailey McCann, Opalesque New York:

Multi-asset alternative funds are gaining in popularity as investors look for ways to hedge against market downturns and increased volatility. Indeed, according to Dominic McCormick, CIO of Select Asset Management. a quiet revolution is slowly taking hold in the management of diversified funds with the creation of a new category of more flexible, 'multi-asset’ funds.

"It represents an abandonment of the constraints of modern portfolio theory and strategic asset allocation and a focus on diversified investment options with true flexibility and, importantly, an emphasis on absolute or real investment objectives that actually matter to everyday investors," he recently explained in MoneyManagement.com.au.

I spoke with Stephen Hammers, portfolio manager of Tennessee-based Compass EMP Alternative Strategies Fund (CAIAX) – a multi-asset alternative fund available to both institutional and retail investors in the US – about how a multi-asset approach can preserve capital.

Compass EMP Funds, was established in 1996 and originally provided investment and consultation services to institutional investors interested in investing in alternatives. Recently, Compass shifted away from consultation and into providing single account multi-asset funds to investors of all typ......................

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