Balter Partners With Invenomic For Long/Short Liquid Alternative Fund

Jun 22 2017 | 8:11pm ET

Liquid alternatives specialist Balter Capital Management has launched a new all-capitalization long/short equity mutual fund through its Balter Liquid Alternatives LLC unit in partnership with Invenomic Capital Management.

The new fund, named the Balter Invenomic Fund, will trade under the symbol BIVIX, the company said in a statement. Invenomic will sub-advise the new fund, while Balter Liquid Alternatives will run operations and compliance. 

Boston-based Invenomic was founded by Ali Motamed, former co-portfolio manager on Boston Partners’ Long/Short Equity Fund.  He will follow the same investment process that he developed during his time at Boston Partners, which utilizes quantitative analysis on the front end coupled with fundamental analysis on the back end.  The quantitative process sources potentially attractive long and short ideas that then go through further fundamental analysis to determine whether they are appropriate for the portfolio.  

The fund will seek to go long companies that generate strong cash flows and deploy capital well and go short companies that are overvalued and destroy capital, the statement continued.  It will have a variable net exposure largely dictated by short opportunities, and is expected to low during overvalued markets and high during undervalued markets.  

The fund will invest in both large and small companies predominately in the United States.

"We are thrilled to be partnering with Invenomic on the launch of this fund,” said Brad Balter, CEO of Balter Liquid Alternatives LLC, in the statement. “The Balter Invenomic Fund continues our tradition of launching capacity constrained strategies run by experienced investment managers.  Ali is proven talent in managing liquid long/short equity portfolios and we couldn't be happier partnering with him and his firm."

"This partnership presents a unique opportunity for us to offer mutual fund investors what we believe has historically been a successful strategy outside the inherent constraints of a multi-billion investment firm," added Motamed.

Unlike traditional hedge funds, many alternative mutual funds provide daily liquidity, lower investment minimums, and simplified tax reporting for shareholders, while offering quarterly full transparency of portfolio holdings and lower fees.  BLA funds employ the investment approach, risk management and operational due diligence typically available only to institutional and high net worth investors through traditional hedge fund structures.

Boston-based Balter Capital Management is a boutique research firm focused on hedge fund research and investing. Its Balter Liquid Alternatives unit was formed to create and manage daily liquidity alternative mutual funds and oversees approximately $1.3 billion in hedge fund and alternative mutual fund assets. 

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