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Alternative Market Briefing

Managed futures should be one of the pillars of portfolio construction

Friday, February 15, 2013

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Robert Worthington
Bailey McCann, Opalesque New York:

Managed futures should be one of the pillars of portfolio construction considered as equally as cash, bonds, or equities according to Robert Worthington, CFA, President of Hatteras Funds. Raleigh, N.C.-based Hatteras offers a combination of alternative investment options to financial advisors and their clients. The firm manages over $2bn in alternative investment strategies for a broad range of institutions, endowments, pensions and high net worth individuals and was one of the first to offer liquid alternatives to retail investors.

Hatteras recently launched a new managed futures fund -the Hatteras Managed Futures Strategies Fund (HMFIX, HMFAX) which invests in an existing $56 million strategy of the Hatteras Alpha Hedged Strategies Fund a multi-strategy, multi-manager alternative mutual fund. Dominion Capital Management, 2100 Xenon Group, Northfield Trading, and Revolution Capital Management serve as the Fund’s managers.

"Our managed futures fund ended 2012 positively even though the strategy as a whole had a rough end to the year," says Worthington in an interview with Opalesque. He notes that the firm focused in on short term trend followers within the managed futures space in an effort to deal with interest rate manipulation in the market.

"Hatteras has focused on building a portfolio of managers that potentially offer significant alpha," said Mr. Worthington. "By not tying themselves to a single model and frequently c......................

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