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Rating:Quant Shop Switches Subadvisors for its Long/Short Fund Not Rated 0.0 Email Routing List Email & Route  Print Print
Wednesday, January 02, 2008

Quant Shop Switches Subadvisors for its Long/Short Fund

News summary by MFWire's editors

Quantitative Investment Advisors has switched subadvisors for its Quant Long/Short Fund. Los Angeles-based Analytic Investors, LLC is the new subadvisor of the fund, which was previously managed by State Street Global Advisors. Christopher Carroll, a spokesman for Quantitative tells the MFWire that the company was looking for a smaller, more client service oriented boutique firm to manager the fund and Analytic fit that criteria well. Carroll added that Quantitative's other funds are also managed by boutique style managers and the switch will bring more consistency across the firm.


Quantitative Investment Advisors, Inc., investment manager to the Quantitative Group of Funds, has announced that it has hired Analytic Investors, LLC as sub-advisor to the Quant Long/Short Fund (USBOX/QGIAX). The Fund invests in long and short positions and currently has a 130/30 structure, also known as a short extension strategy. Analytic pioneered the short extension strategy in 2002. At five and a half years, Analytic's short extension strategy has the longest live track record.

"We are pleased to announce that Analytic is the new sub-advisor for the Quant Long/Short Fund," said Bill Umphrey, President of Quantitative Investment Advisors. "Analytic fits well with our philosophy of offering retail investors access to high caliber institutional money managers who are specialists in their fields. We look forward to working in partnership with Analytic to bring both excellent management skills and service to mutual fund investors."

Analytic uses a quantitative approach based on the investment philosophy that using a disciplined and responsive process while adapting to secular market changes should deliver consistent returns over full market cycles. The portfolio management team uses multi-dimensional quantitative models to look at over 70 characteristics affecting portfolio returns. These adaptive models take into account current market conditions and are based on the belief that understanding the persistence of investor behavior through the analysis of these factors, coupled with prudent risk controls, will deliver consistent performance.

The Quant Group of Funds was established in 1985 to provide high-net-worth clients of its sister company, U.S. Boston Capital Corporation, an alternate choice to mutual funds that were being offered at the time. Instead of attempting to hire individual managers as employees, Quantitative Investment Advisors chose to hire sub-advisors to manage the Funds. Quantitative Investment Advisors carefully selects sub-advisors that are specialists in each Fund's particular investment strategy. As a result, Quant Funds offers individual investors exposure to high caliber institutional money managers to which they may not normally have access. Quant Long/Short Fund (USBOX) had total net assets of approximately $84.1 million as of December 31, 2007. The Fund was previously sub-advised by SSgA Funds Management, Inc. Prior to November 1, 2006, the Fund did not take short positions as part of its principal investment strategy and, therefore, its prior performance may not be indicative of how it will perform using short selling as a principal investment strategy. The Fund is one of four mutual funds with management overseen by Quantitative Investment Advisors, including two domestic and two international mutual funds. The Quant Funds have two shares classes that are distributed by U.S. Boston Capital Corporation and available through broker-dealers, most major brokerage platforms and mutual fund supermarkets, and through registered investment advisors.

About Quantitative Investment Advisors, Inc.

Quantitative Investment Advisors, which began managing mutual funds in 1985, manages approximately $1.9 billion in assets (as of December 31, 2007) for the Quantitative Group of Funds. The Funds are distributed by U.S. Boston Capital Corporation, 55 Old Bedford Road, Lincoln, MA, 01773, Member FINRA/SIPC.

About Analytic Investors, LLC

Based in Los Angeles and a subsidiary of Old Mutual plc, Analytic employs 59 professionals and manages approximately $12 billion as of November 30, 2007. Since its founding in 1970, the firm's mission has been to fulfill clients' objectives through rational, systematic identification of market opportunities, while minimizing the impact of human emotions that often dominate investment decision making. Analytic manages a range of assets based on clients' mandates for relative benchmark and absolute-return-driven strategies. A unified equity valuation model drives long-only, long/short and market neutral equity strategies, while a global asset allocation model drives absolute-return GAA strategies.

Note: There is no guarantee that the use of long and short positions will succeed in limiting Quant Long/Short Fund's exposure to domestic stock market movements or other risk factors. Short selling involves certain risks. The Fund will have additional costs associated with covering short positions and a possibility of unlimited loss if the Fund must cover a short position when the value of a stock sold short increases. The Fund may borrow stocks that are sold short to make delivery to the buyer but it may not always be able to borrow a security it wants to sell short. The Fund also may be unable to close an established short position at an advantageous price, and may have to sell related long positions at disadvantageous times. A portfolio involved in short selling will likely have a high portfolio turnover rate which may result in tax consequences for investors.

(C)2008 Quantitative Investment Advisors, Inc. 

Edited by: Erin Kello


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