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Alternative Market Briefing

Mutual fund and ETF-focused absolute return strategy marks fifth year with +7.09% annualized returns for non-accredited investors

Wednesday, August 12, 2009

From Kirsten Bischoff, Opalesque New York:

As more financial firms look to bring alternative investment strategies to retail investors (see Opalesque's recent two-part story: Hedged mutual funds (HMFs) may be a dominant trend in next hedge fund industry cycle - one and two), Oregon-based Bandon Capital Management celebrated the fifth anniversary of its flagship absolute return investment strategy, which is available to non-accredited investors in a managed account form.

The Directional Interest Rate Strategy (DIRS) utilizes mutual fund investing as well as ETFs to carry out an absolute return strategy invested in the US Treasury Market.

According to the firm's website macro-economic and valuation based principals are utilized to make a forecast that attempts to predict the direction of Treasury interest rates each month. "10-yr Treasury yields are up over 100bps year to date," Bill Woodruff, founder and managing principal of Bandon (www.bandonalts.com) commented to Opalesque. "That is a gigantic move and we have been really successful navigating that."

"Investors are really shunning illiquidity and they are looking for strategies that have a potential to work in a rising ......................

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