James Alpha Launches Pair of Hedged Equity Funds

James Alpha Launches Pair of Hedged Equity FundsFamily office and diversified asset manager James Alpha Management has continued on its mission of finding emerging, alternative investment managers and making them available to investors via hedge funds and mutual funds. This month, the firm has added two new mutual funds to its existing four fund line-up: The James Alpha Managed Risk Domestic Equity Portfolio (JDIEX) and the James Alpha Managed Risk Emerging Markets Equity Portfolio (JEIMX), both of which made their debut on July 1.

The firm’s current mutual fund range covers real return, real estate, multi-strategy alternative income and MLPs, thus the two new hedged equity funds provide a solid complement to the existing products.

Managed Risk Domestic Equity Portfolio

The James Alpha Managed Risk Domestic Equity Portfolio pursues an objective of capital appreciation by combining long positions in U.S. stocks with an options hedging strategy designed to dampen volatility and protect against downside risk.

The portfolio’s long holdings seek to represent the S&P 500, may include ETFs and individual stocks, and may use up to 30% leverage to enhance returns. The options hedging strategy is divided into two parts: a low-volatility strategy, aimed at protecting the fund from significant downturns by using a “calendar spread” strategy; and a high-volatility strategy, which uses conventional put spreads to protect against more modest downturns.

James Alpha Management is the fund’s manager, and it oversees EAB Investment Group, the fund’s sub-advisor. A team of six portfolio managers from both James Alpha and EAB are responsible for the fund’s day-to-day management.

The fund is available in A, C, and I share classes. The net-expense ratios of of the fund is shown as 2.42%, 3.17%, and 2.17%, respectively, which includes an investment management fee of 1.20%. The minimum initial purchase for A and C shares is $2,500; and the minimum for I shares is $2 million.

For more information, download a pdf copy of the fund’s prospectus.

Managed Risk Emerging Markets Equity Portfolio

The James Alpha Managed Risk Emerging Markets Equity Portfolio pursues a near-identical investment strategy as its counterpart, although instead of seeking long exposure to the S&P 500, the Emerging Markets Equity Portfolio seeks long exposure to the MSCI Emerging Markets Index. Like the Domestic Equity Portfolio, the James Alpha Emerging Markets Equity Portfolio uses an options hedging strategy involving calendar spreads and conventional put spreads to mitigate downside risk.

The fund is available in A, C, and I share classes. The net-expense ratios of of the fund is shown as 3.03%, 3.78%, and 2.78%, respectively, which includes an investment management fee of 1.20%. The minimum initial purchase for A and C shares is $2,500; and the minimum for I shares is $2 million.

For more information, download a pdf copy of the fund’s prospectus, or visit jamesalphafunds.com.

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