Mon, Mar 30, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Alternative mutual funds are here to stay

Wednesday, September 18, 2013

Bailey McCann, Opalesque New York:

Much has been written about hedged mutual funds, leading some to call them a new fad for retail investors. However, more and more managers are looking at mutual fund structures, and Tom Florence, CEO of Denver-based 361 Capital, says they are here to stay. 361 was founded in 2001, and was one of the early entrants to the liquid alternatives space, the firm manages three alternative mutual funds including a managed futures product. That fund - the flagship - currently has $415m in assets, and firm assets are at $460m.

"Mutual funds are a hard business, and they are a really different business, so hedge fund managers have to decide if they are going to go it alone or if they are going to do it with a partner who understands," he says in an interview with Opalesque, noting that there is an underserved investor marketplace for these products.

"The challenge is there are only so many alternative assets - is there enough room for all of these funds? No. So you're going to see focus on quality and performance."

Some early entrants into the space that lack quality may have a hard time competing against newer, higher quality products entering the market, he says. This also holds true for other retail avenues into the alternatives industry like business development companies (BDCs), or closed-end funds.

"The other interesting thing that I think you'll start to see happen is, a lot of hedge fun......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Private credit comes into focus for investors[more]

    Bailey McCann, Opalesque New York: As investors look for a way out of the low yield/no yield environment, private credit is becoming an increasingly attractive asset class, according to a white paper from Bayshore Capital Advisors. Private credit has grown steadily since the financial crisis as

  3. Other Voices: The role of diversification in CTA portfolios[more]

    2014 brought a resurgence of managed futures strategies, or CTAs, which performed very well as a whole, outperforming all other hedge fund strategies. However, a closer look reveals that there was a wide range of performance, or return dispersion, across managers. The bottom line? Not all CTAs

  4. Neuberger Berman unit buys 20% stake in activist hedge fund Jana Partners for $2bn[more]

    Komfie Manalo, Opalesque Asia: Neuberger Berman’s unit Dyal Capital Partners bought a 20% stake in activist hedge fund firm Jana Partners worth $2bn, WSJ.com reports. The deal comes as activi

  5. Hedge fund launches fall again, $1bn funds found to outperform even smaller hedge funds[more]

    Komfie Manalo, Opalesque Asia: The number of new hedge fund launches fell again in 2014, the third consecutive year of decline, while fund liquidations saw their first drop since 2010, according to the latest HFR Market Microstructure Industry Report released by industry data provider HFR. Acc

 

banner