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New Mutual Fund Offers Potential Inflation Hedge and Durable Stream of Income
LA JOLLA, Calif., Feb. 18, 2014 /PRNewswire/ -- Altegris, provider of premier alternative investments, announces the launch of the Altegris/AACA Real Estate Long Short Fund (RAAAX). The Fund seeks to deliver higher risk-adjusted returns than traditional long-only real estate strategies, while also potentially providing an inflation hedge and a durable stream of income.
"Real estate holdings are an essential component of a well-diversified portfolio designed to build and preserve capital in all market conditions," explained Jon Sundt, President and CEO of Altegris and the Altegris Family of Mutual Funds. "We are giving investors an opportunity to achieve strong, inflation-hedged returns across an entire real estate market cycle."
The Fund's sub-adviser, American Assets Investment Management, LLC (AACA)[i], utilizes a long/short real estate strategy focused on investing in equity securities of real estate investment trusts (REITs) and real estate companies in sectors where tenants are not inclined to move. These situations manifest themselves when sectors have few participants, tenants have high demand drivers for their businesses, high entry barriers exist for new owners and developers and tenants have high barriers to exit. AACA was founded in 2002 with an established industry network of real estate professionals, investment bankers, management teams and analysts.
"Our ability to make both long and short investments, coupled with the fact that we are not beholden to shadowing an index, gives us the freedom to create a portfolio composed of only those real estate securities we believe to have greatest total return potential," said Burland B. East III, CFA, Portfolio Manager and CEO of AACA. "High-quality real estate run by high-quality management teams in high-quality locations may provide consistent capital over the long term, but our investment strategy seeks to mitigate the downside effects in the event of inflation."
For more information about Altegris, please contact Dana Taormina at 973-850-7305 or email@example.com.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Altegris/AACA Real Estate Long Short Fund. This and other important information about a Fund is contained in the Fund's Prospectus which can be obtained by calling (888) 524-9441. The Prospectus should be read carefully before investing. Funds are distributed by Northern Lights Distributors, LLC, member FINRA. Altegris Advisors and Northern Lights Distributors, LLC are not affiliated.
MUTUAL FUNDS INVOLVE RISK INCLUDING POSSIBLE LOSS OF PRINCIPAL
Equity securities such as those held by the Fund are subject to market risk and loss due to industry and company news or general economic decline. Equity securities of smaller or medium-sized companies are subject to more volatility than larger, more established companies. The concentration in real estate securities entails sector risk and greater sensitivity to overall economic conditions as well as credit risk and interest rate risk.
The Fund will engage in short selling and short position derivative activities, which are considered speculative and involve significant financial risk. Short positions profit from a decline in price so the Fund may incur a loss on a short position if the price increases. The potential for loss in shorting is unlimited. Shorting may also result in higher transaction costs which reduce return. The use of derivatives, such as futures and options involves additional risks such as leverage risk and tracking risk. Long options positions may expire worthless. The use of leverage will cause the Fund to incur additional expenses and can magnify the Fund's gains or losses.
Foreign investments are subject to additional risks including currency fluctuation, adverse social and economic conditions, political instability, and differing auditing and legal standards. These risks are magnified in emerging markets. Preferred stock and convertible debt securities are subject to credit risk and interest rate risk. As interest rates rise, the value of fixed income securities will typically fall. Credit risk, liquidity risk, and potential for default are heightened for below investment grade or lower quality debt securities, also known as "junk" bonds or "high-yield" securities. Any ETFs held reflect the risks and additional expenses of owning the underlying securities.
Funds that are new have a limited history of operations. Higher portfolio turnover may result in higher costs. The manager or sub-adviser's judgments about the value and potential appreciation or depreciation of a particular security in which the Fund invests or sells short may prove to be inaccurate and may not produce the desired results. The Fund is non-diversified and may invest more than 5% of total assets in the securities of one or more issuers, so performance may be more sensitive to any single economic, business or regulatory occurrence than a more diversified fund.
Altegris searches the world to find what we believe are the best alternative investments. Our suite of alternative investment solutions are designed for financial professionals and individuals seeking to improve portfolio diversification.
With one of the leading research and investment groups focused solely on alternative investments, Altegris follows a disciplined process for identifying, evaluating, selecting, and monitoring investment talent across a spectrum of alternative strategies including managed futures, global macro, long/short equity, event-driven and others. As veteran experts in the art and science of alternatives, Altegris guides investors through the complex and often opaque universe of alternative investing.
Alternatives are in our DNA. Our very name, Altegris, highlights our singular focus on alternatives, the highest standards of integrity, and a process that constantly seeks to minimize investor risk while maximizing potential returns.
The Altegris group of affiliated companies is wholly-owned and controlled by (i) private equity funds managed by Aquiline Capital Partners LLC and its affiliates ("Aquiline"), and by Genstar Capital Management, LLC and its affiliates ("Genstar"), and (ii) certain senior management of Altegris and other affiliates. Established in 2005, Aquiline focuses its investments exclusively in the financial services industry. Established in 1988, Genstar focuses its investment efforts across a variety of industries and sectors, including financial services. The Altegris companies include Altegris Investments, Altegris Advisors, Altegris Funds, and Altegris Clearing Solutions. Altegris has 110 employees who are 100% focused exclusively on alternative investments. As of December 31, 2013, Altegris had $2.49 billion in client assets, and provided clearing services to $623 million in institutional assets.
[i] American Assets Investment Management, LLC (doing business as AACA and referred to herein as "AACA")
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