In this video, Driehaus Investments Portfolio Manager and Managing Director K.C. Nelson gives a brief rundown of three of his firm’s alternative funds: the Active Income Fund (LCMAX), the Select Credit Fund (DRSLX), and the Event Driven Fund (DEVDX).
Mr. Nelson says the Active Income Fund is a traditional fixed-income substitute. Over the past six years, Nelson says the fund has produced “zero correlation” to the Barclays Aggregate Index, with less volatility. Investors looking for more aggressive alternative fixed-income exposure should consider the Select Credit Fund, which utilizes multiple strategies within the same fund, including long/short strategies.
Driehaus also operates an Event Driven Fund, which differs from its other alts in that its predominantly an equity fund. Mr. Nelson says that around two-thirds of the fund’s exposure is to equity-related, and that the fund aims to take advantage of “any catalyst” that might “unlock or destroy value.” In his opinion, the fund is “positioned quite well” for opportunity going forward, given the investment backdrop.
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