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Bailey McCann, Opalesque New York:
Salient Partners, an $18bn investment management firm based in Houston, Texas has launched its fourth liquid alternative fund that is designed to offer retail investors access to alternative strategies previously only offered to institutional investors. The Salient Alternative Beta Fund makes long and short investments in futures and forward contracts but also invests in securities, derivatives and other financial instruments allowing it to obtain extra diversification.
Traditionally, investors in alternative investment strategies have generally gravitated toward lower volatility investments that exhibit return patterns that are more correlated with traditional equity markets, however this fund goes against the grain by attempting to diversify away from equity-centric exposure while utilizing high volatility.
"We wanted to create a fund that potentially has a positive expected return with a low correlation to the broad stock market," said Lee Partridge, Salient Chief Investment Officer in an interview with Opalesque. "We didn't want to be an S&P 500 replicator with some hedges, instead we wanted to be as uncorrelated as possible."
The fund tracks alternative betas, non-traditional market exposures based on chronic investor biases which can be used to generate potential return streams. Alternative betas, which include size, value, carry and momentum may provide pos...................... To view our full article Click here
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