Weiss Multi-Strategy Advisers Launches Alternative Balanced Risk Fund

Weiss Funds Alternative Balanced Risk Fund

Weiss Multi-Strategy Advisers launched the Weiss Alternative Balanced Risk Fund (WEISX) on December 1. The fund’s objective is to pursue returns with moderate volatility and reduced correlation to traditional asset classes, such as stocks and bonds. The fund’s “balanced risk” allocation strategy consists of:

  • A long-only portfolio of stocks (“the equity component”);
  • A long-only portfolio of debt securities (“the bond component”); and
  • A diversified, multi-strategy long/short portfolio of stocks, bonds, and/or derivatives (“the long/short component”).

The Weiss Alternative Balanced Risk Fund’s equity component will generally invest in U.S. large- and mid-cap stocks and is designed to approximately track the stock market as a whole. The fund’s fixed-income holdings, including those in the bond and long/short components, will target weighted average maturity of 9 years, and will consist of only highly-rated securities.

Allocations Based on Risk Contribution

Portfolio managers Jordi Visser, Charles S. Crow IV, and Edward Olanow are responsible for the day-to-day management of the fund. Mr. Visser is President and CEO at Weiss and oversees the investment management process. Mr. Crow is responsible for the fund’s quantitative methodologies, and he and Mr. Olanow are in charge of trading. Together, the managers allocate across the fund’s three components according to the expected contributions to overall portfolio risk for each. In the words of the prospectus, these allocations can “fluctuate widely.”

Currently, the Weiss Alternative Balanced Risk Fund is available in I (WEISX) and K (WEIKX) classes, with respective net-expense ratios of 3.33% and 3.23%. A and C class shares, with respective net-expense ratios of 3.58% and 4.23%, are listed in the fund’s prospectus but are not yet available for purchase. The minimum initial purchase levels for I and K shares are $250,000 and $2 million, respectively. A and C shares, when available, will have a minimum initial purchase of $5,000.

For more information, visit the fund’s web page.

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