Orinda Asset Management LLC, an independent, privately-held asset management firm, is to launch the Orinda Multi-Manager Hedged Equity Fund (Ticker: OHEIX, OHEAX, OHECX), which seeks long-term capital appreciation with an emphasis on risk-adjusted returns and reduced volatility compared to traditional broad-based equity market indices.
The fund allocates its assets among a carefully chosen group of skilled hedged equity managers who employ various long/short equity investment strategies. To assist in manager selection, portfolio construction and risk management, Orinda Asset Management has selected SkyView Investment Advisors, an experienced, institutional multi-manager hedge fund advisory firm, to act as the lead sub-adviser to the Fund.
"While long/short equity investing has existed for decades, the ability to access this approach with experienced hedge fund managers in a multi-manager construct has historically been limited to high net worth and institutional investors. Given the increased desire for greater transparency, daily liquidity and regulatory oversight by all investors, we are very excited to offer an institutional caliber multi-manager hedged equity mutual fund, and to be partnering with the team at SkyView," says Lawrence Epstein, chief investment officer for Orinda Asset Management.
The Orinda Multi-Manager Hedged Equity Fund has been constructed to allow focused hedged equity managers the opportunity to seek the most compelling opportunities in their investment universe. The fund can be utilised as either an attractive complement to an alternative asset allocation, or as an adjunct or substitute for traditional active long-only exposure.
"We are delighted to work closely with Orinda Asset Management, and to extend our expertise in manager selection, portfolio construction and risk management for long/short equity strategies to a mutual fund format," says Steve Turi, chief investment officer for SkyView Investment Advisors. "We believe the convergence of traditional and alternative approaches to money management will accelerate the appeal of this type of fund to both experienced alternative investment managers and a broader investor universe."
Orinda Asset Management believes a carefully constructed portfolio of experienced long/short equity managers employing complementary strategies in a mutual fund structure can offer investors the opportunity to access a number of important benefits, including the potential for enhanced portfolio returns, more effective diversification and potentially reduced volatility compared to traditional long-only funds, daily pricing and liquidity, high levels of transparency and modest investment minimums.
