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Alternative Market Briefing

Thornburg eyes healthcare for equity long/short strategy

Tuesday, October 17, 2017

Bailey McCann, Opalesque New York:

Despite a solid year for hedge fund performance, many investors are still looking at the liquid alternatives space to get similar equities strategies at a lower fee. Earlier this year, Thornburg decided to go with the trend and convert its Long/Short Equity Fund to an actively managed mutual fund. Portfolio manager Connor Browne tells Opalesque that so far, investors have rewarded the decision.

"We have been able to offer our long/short approach with lower volatility than we had in the hedge fund and the response from investors has been positive," Browne tells Opalesque.

The strategy takes an all-cap, go anywhere approach to picking equities. Browne's long positions are companies that he views as undervalued and with a long runway for growth. The fund's short positions are typically companies that aren't doing well in the current cycle or are possibly permanently on their way down. Year-to-date performance is positive - the fund was up +14.53 percent, according to Bloomberg data. The strategy is up +7.12 percent since its inception as a hedge fund in 2008.

According to Browne, the team is planning to spend the near term getting the word out about the switch and raising assets. The fund had just over $79 million through September 30, an increase of $24 million since the end of the second quarter. "I think being based in Santa Fe gives us a unique perspective and helps us reach investors that are left out by the ......................

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