AllianceBernstein has launched three new liquid alternative mutual funds, Credit Long/Short, Multi-Manager Alternative Strategies Fund and Long/Short Multi-Manager Fund, as it continues to broaden its array of US retail offerings.
These three new mutual funds represent the next phase of opportunity for AllianceBernstein’s rapidly growing $19 billion alternatives platform. One notable success driver to date has been Select US Long/Short (ASLAX), managed by Kurt Feuerman.
The Select US Long/Short mutual fund has raised more than $1.8 billion in assets since launching in December 2012 and ranked fourth in year-to-date 2014 flows in its category according to Morningstar Direct.
"Our liquid alternative strategies are resonating with investors because we’re providing them access to highly specialized funds run by leading institutional managers, yet with daily liquidity, transparency and risk management," said Robert Keith, Head of AllianceBernstein’s Client Group.
"We launched Credit Long/Short and our Multi-Manager strategies to respond to our clients’ demand for services that offer diversification from traditional stocks and bonds, while reducing sensitivity to equity and interest rate movements."
Leveraging the expertise of AllianceBernstein’s credit investment team, which manages more than $130 billion in assets and integrated global credit research platform, Credit Long/Short seeks capital preservation and low correlation to traditional asset classes, with the goal of achieving strong relative returns in rising rate environments, as well as a relatively modest drawdown experience in more challenged markets.
The Fund will be invested globally in credit-related instruments such as investment grade, high yield, emerging markets, floating-rate loans, and securitized assets, and looks to manage interest rate risk by dynamically shifting duration: -3 and +3 years. The Fund will be managed by Ashish Shah, Global Head of Credit, Gershon M. Distenfeld, Director of High Yield, and Sherif M. Hamid, High Yield portfolio manager.
AllianceBernstein’s Multi-Manager Alternative Strategies Fund (ALATX) and Long/Short Multi-Manager Fund (LSAMX) leverage the expertise of the firm’s $12 billion Alternative Investment Management Group.
Led by Marc Gamsin and Greg Outcalt, the team has been managing multi-manager hedge fund and private equity portfolios for institutional clients and high net worth individuals since 1996. These Funds seek attractive risk-adjusted returns with lower volatility than that of equity markets and less sensitivity to stock and bond market movements than traditional investments.
The AllianceBernstein Multi-Manager Alternative Strategies Fund deploys investments across four strategies: Long/Short Equity, Special Situations, Credit and Global Macro, and seeks to diversify exposure to quality top-tier managers within each strategy.
The AllianceBernstein Long/Short Multi-Manager Fund is a diversified portfolio of high quality alternative long/short equity investment managers. Manager selection and portfolio construction will leverage a similar institutional-quality investment process that has driven the team’s hedge fund portfolios since inception.