With markets at record valuations, strategy seeks to provide investors with the potential for growth while managing downside risk.
Denver—May 31, 2017—361 Capital, a leading boutique asset manager offering distinctive investment strategies to institutions, investment advisors and their clients, recently celebrated the third anniversary of its 361 Global Long/Short Equity Fund (AGAZX).
Sub-advised by Analytic Investors, the Fund’s strategy pursues equity-like returns while managing downside risk, and with significantly less volatility than its benchmark, the MSCI World Index. The strategy seeks to capitalize on the ‘Low Volatility Anomaly,’ a methodology of buying stocks with lower predicted beta and positive predicted alpha and shorting stocks with opposing characteristics.
“From the beginning, we’ve valued our partnership with Analytic Investors, and are thrilled to see that the Fund has delivered a consistently positive experience for investors,” said Tom Florence, President and CEO of 361 Capital.
As a measure of manager skill, the Fund has produced alpha of 5.52 since inception compared to the Morningstar Long/Short Equity Category, which has had negative alpha during this same time period.* Additionally, its unique systematic approach and dynamic factor models give it the potential to capture meaningful alpha from both long and short exposures.
“We are seeing signs that the euphoria that has characterized U.S. and global markets in the first quarter of 2017 may well subside in coming months,” said Harin de Silva, President of Analytic Investors and sub-advisor of the 361 Global Long/Short Equity Fund. “Investors are looking for ways to capture growth, but are wary of potential market corrections. With our long and short positions allocated strategically across sectors and geographies, we believe our Fund is well positioned to take advantage of the market pullback that is likely going to happen in the coming year.”
For more information about the 361 Global Long/Short Equity Fund, or for questions about implementing hedged growth strategies, contact 866‐361‐1720.
About 361 Capital
361 Capital was founded in 2001 with the singular mission of offering distinctive investment solutions that deliver positive long-term results for our clients. Today, we offer alternative and traditional long-only equity strategies at the cutting edge of evolving markets—uniquely designed to deliver growth, risk management and diversification.
361 Capital is majority employee-owned with strategic investments from Lovell Minnick Partners, a private equity firm and Lighthouse Investment Partners. For more information, call 866-361-1720 or visit 361capital.com.
About Analytic Investors
Founded in 1970, Analytic Investors is an asset management firm specializing in quantitative investment solutions and portfolio management. The Los Angeles-based firm strives to anticipate and capitalize on changes in the investment climate through a disciplined, active management strategy. With approximately $19.1 billion in assets under management as of 3/31/2017, Analytic Investors is widely recognized for innovative research, disciplined quantitative processes and sophisticated risk control techniques, as well as being considered a leader in exploiting the low volatility anomaly. Analytic Investors, an independently operated subsidiary of Wells Fargo Asset Management, has been managing a Global Long/Short Equity strategy for six years.
*Data from 2/1/2014-3/31/2017 for Class I Shares, the fund’s first full month of operation. The Fund’s inception date is 1/6/2014. Statistics calculated using monthly return data relative to MSCI World Index.
Alpha measures the difference between a fund’s actual and expected returns, based on beta, and is generally used as a measure of a manager’s added value over a passive strategy.
You should consider the 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 Funds, call 1-888-736-1227. Please read the prospectus or summary prospectus carefully before investing.
Investing involves risk, including possible loss of principal. The potential loss from a short sale is theoretically unlimited since the appreciation of the underlying asset also is theoretically unlimited. Foreign investment entails additional risk from adverse changes in currency exchange rates, lax regulation, and potential market instability. Frequent trading by the Fund may reduce returns and increase the number of taxable transactions. Concentration of its portfolio in relatively few issuers may make the Fund more volatile than a diversified fund.
The 361 Funds are distributed by IMST Distributors, LLC.