DENVER--(BUSINESS WIRE)--361 Capital, an asset management firm specializing in liquid alternative investments, today announced its plans to expand its family of alternative mutual funds by launching a series of funds that will be sub-advised by single managers with proven alternative asset management track records.
In contrast to the alternative mutual funds that utilize multiple managers, 361 Capital’s new funds are expected to be single-manager strategies. The firm plans to partner with hedge fund managers and successful managers of alternative mutual funds, who will serve as sub-advisors. Distribution will be carried out through a hybrid strategy that leverages marketing automation, technology and a strong sales force, with a primary focus on reaching Registered Investment Advisors.
“With the growth of liquid alternatives that is expected over the next five years, particularly among hedge funds looking to enter the ’40 Act space, we believe there is an opportunity to expand our fund offerings,” said Tom Florence, CEO of 361 Capital. “We believe we are well positioned to take advantage of that opportunity because of our track record with the 361 Managed Futures Strategy Fund, a counter-trend strategy, and our success raising money through financial advisors.”
The first new fund to come out of this expansion is the 361 Global Macro Opportunity Fund, which will be managed by Blaine Rollins, a veteran of Janus Capital Group. This Fund will seek a long-term positive absolute return by investing in a wide range of asset classes that provide exposure principally to U.S. and foreign equity securities, fixed income securities, commodities and currencies, and may invest in various individual securities and currencies as well as indices based on a broad range of individual securities, commodities and currencies. This Fund is expected to be operational by July 1.
Primed for Growth
Liquid alternatives have seen strong industry growth, outpacing traditional hedge funds, according to “Going Mainstream: Developments and Opportunities for Hedge Fund Managers in the ’40 Act Space,” an April 2014 study by Barclays Prime Services. The study found that in 2013, liquid alts assets grew by 43%, while hedge funds saw just 15% growth. And they still have plenty of room to grow. Liquid alts make up only 1%, or $137 billion, of the $13.2 trillion U.S. mutual funds industry, according to the Barclays study, which estimates that liquid alternatives assets will reach $650 billion to $950 billion by 2018.
“Demand for liquid alternatives strategies continues to grow, as advisors increase allocations and adopt more sophisticated strategies,” said Florence. “We believe we can help great money managers diversify their product offerings and distribution channels, while developing innovative liquid products built for today’s alternative investments environment.”
About 361 Capital
361 Capital is an asset management firm specializing in liquid alternative investments. Founded in 2001, the firm is a pioneer in delivering innovative alternative investment strategies to investors in highly liquid vehicles. 361 Capital specializes in managed futures, long/short equity, multi-strategy, and global macro strategies, accessible through mutual funds, limited partnerships, and separate accounts. The firm distributes its products through investment advisors and institutions. For more information, call 866-361-1720 or visit www.361capital.com.
A REGISTRATION STATEMENT RELATING TO THE 361 GLOBAL MACRO OPPORTUNITY FUND HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. SHARES OF THE FUND MAY NOT BE SOLD UNTIL THE REGISTRATION STATEMENT BECOMES EFFECTIVE. THIS COMMUNICATION IS NOT AN OFFER TO SELL SHARES OF THE FUND IN ANY STATE WHERE SUCH OFFERS ARE NOT PERMITTED. Before investing, you should carefully consider the Fund’s investment objectives, risks, charges and expenses. You may obtain a preliminary prospectus with this and other information about the Fund by calling 1-888-736-1227. The preliminary prospectus is incomplete and subject to change. The final prospectus, when available, should be read carefully before investing.
Investors should consider the Global Macro Opportunity Fund’s investment objectives, risks, charges and expenses carefully before investing. For a prospectus, or summary prospectus, that contains this and other information about the Fund, call 1-888-736-1227 or visit www.361capital.com. Please read the prospectus or summary prospectus carefully before investing.
Past performance does not guarantee future results. The Funds’ performance may be influenced by political, social and economic factors affecting investments in foreign markets, including exposure to currency fluctuations relative to the U.S. dollar, less liquidity, less developed or less efficient trading markets, lack of comprehensive company information, political instability, and differing auditing and legal standards. Emerging markets tend to be more volatile than the markets of more mature economies. The value of securities held by the Funds may fall due to general market and economic conditions. The securities of small-cap companies may be subject to more abrupt or erratic market movements; trading may be more erratic or have lower volume than securities of larger companies. Fixed income securities are subject to the risk that securities could lose value because of interest rate, inflation and credit changes.
Derivatives can be highly volatile, illiquid and difficult to value, and changes in the value of a derivative held by the Funds may not correlate with the underlying instrument or the Funds’ other investments. The Funds may make short sales, which may expose the Funds to the risk that it will be required to "cover" the short position at a time when the underlying instrument has appreciated in value, thus resulting in a loss to the Funds. Losses may be incurred even if they are “covered”. The use of leverage may further magnify the Funds’ gains or losses.
Funds’ performance may be more vulnerable to changes in the market value of a single position and more susceptible to risks associated with a single economic, political or regulatory occurrence than a diversified fund. The Funds may have limited or no track record on which to base investment decisions. Regulators may undertake rulemaking, supervisory or enforcement actions that would adversely affect the Funds. Active and frequent trading may lead to a greater proportion of the Funds’ gains being treated for federal income tax purposes as short-term capital gains or to distribute taxable income to its shareholders sooner than it would have distributed income if the investments were held for longer periods of time. Frequent trading and overlapping security transactions including ETFs would also result in transaction costs, which could detract from performance.
Alternative Investments are speculative and involve substantial risks. It is possible that investors may lose some or all of their investment.
The 361 Funds are distributed by IMST Distributors, LLC.
