Neuberger Berman has launched the Neuberger Berman Long Short Multi-Manager Fund, a sub-fund of its Irish-Domiciled Ucits fund umbrella, Neuberger Berman Investment Funds plc.
The fund seeks long-term capital appreciation with a secondary objective of principal preservation, by allocating its assets to a select group of external hedge fund advisers that employ distinct long short strategies, investing primarily in equities globally.
“Unlike traditional hedge funds, the fund provides daily liquidity, full transparency of portfolio holdings and is a lower cost alternative to hedge funds, with no performance-based fees at any level. The fund leverages the expertise of the wider Neuberger Berman Alternatives team of over 50 professionals to produce a portfolio of quality managers with strong pedigrees typically unavailable to most investors,” the company said.
Liquid alternatives seek to generate absolute returns, limit steep drawdowns and dampen volatility. Neuberger Berman’s suite of liquid alternatives products also includes the Global Bond Absolute Return Fund launched in September 2013, the Absolute Return Multi-Strategy Fund launched in October 2013 and the US Long Short Equity Fund launched in March of this year.
The fund will be managed by members of the Neuberger Berman Hedge Fund Solutions group established in 2002, including Managing Directors David Kupperman, Fred Ingham, Jeff Majit and Eric Weinstein, and Senior Vice President, Ian Haas. The group currently oversees over $4bn (€3.2bn) in hedge fund solutions including $1.9bn (€1.5bn) within the Neuberger Berman Absolute Return Multi-Manager strategy.
“The current backdrop of high dispersion in equities has created a fertile stock picking environment and we believe this is a timely point in the market to launch the Neuberger Berman Long Short Multi-Manager Fund” said Fred Ingham, Head of International Hedge Fund Investments at Neuberger Berman Alternative Management.
“We launched this fund in response to client demand for focused single strategy portfolios alongside our existing multi strategy Ucits fund. This new fund will invest in equity focused long short strategies diversified across managers, geographies and sectors, allowing investors to gain exposure to active long and short stock selection whilst reducing exposure to general market risk” said Dik van Lomwel, Head of EMEA and Latin America at Neuberger Berman.”