Thursday, December 03, 2009
Al Frank Makes a Buy
Reported by Neil Anderson, Managing Editor
Al Frank Asset Management
just upped its assets under management to almost $1.1 billion. On Tuesday the Laguna Beach, California-based value mutual fund and separately managed account manager confirmed its purchase of Innealta Portfolio Advisors
for an undisclosed sum. A quant shop, Innealta boasts more than $650 million in AUM and specializes in tactically managed portfolios of ETFs. (Al Frank had more than $423 million in AUM on October 30.)
founded Innealta in 2007 after serving as chief investment officer of now-defunct XTF Global Asset Management. He takes the post of CIO of Al Frank and will continue to manage Innealta's tactical portfolios of ETFs.
"This acquisition marks our most recent step in an aggressive plan for building a boutique provider of world class investment expertise and solutions for the evolving needs of advisors and individual investors," stated Jeff Montgomery
, Al Frank's CEO.
Company Press Release
LAGUNA BEACH, CA--(Marketwire - December 01, 2009) - Al Frank Asset Management (AFAM), one of the oldest, private boutique money managers in the country, is pleased to announce today that it has acquired Innealta Portfolio Advisors, LLC, one of the industry's fastest growing, active money managers. Innealta is a quantitative asset management firm specializing in the creation and tactical management of Exchange Traded Fund (ETF) portfolios. The acquisition significantly expands AFAM's offerings for select financial advisors seeking specialized services and innovative investment strategies.
"We are very excited to expand the AFAM platform with Innealta's unique approach to tactically managing portfolios. This acquisition marks our most recent step in an aggressive plan for building a boutique provider of world class investment expertise and solutions for the evolving needs of advisors and individual investors," said Jeff Montgomery, Chief Executive Officer of AFAM. "We are building a firm focused on delivering platinum level services to discerning advisors and high net worth clientele."
Innealta has over $650 million in managed assets, increasing AFAM's total managed assets by more than 100% to nearly $1.1 billion. In the past 12 months, AFAM has added a significant number of large distribution partners who will now benefit from the Innealta ETF portfolios.
Innealta manages multiple portfolio strategies based on a proprietary econometric model developed by Founder Dr. Jeff Buetow, Ph.D., CFA. Offerings include tactical risk-based strategies, a tactical fixed-income strategy, and a set of country and sector rotation strategies. Dr. Buetow will serve as Chief Investment Officer of Innealta, which will operate as a separate and distinct division of AFAM. The acquisition will create no changes to the construction methodology or the operations of the tactical ETF portfolios and Dr. Buetow will continue to manage them.
"Innealta's rapid growth created the need for access to a top-notch support infrastructure, including the addition of a dedicated and experienced leadership team," said Scott Silverman, AFAM's Senior Vice President for Business Development. "The combination of Innealta and AFAM will allow Dr. Buetow to focus exclusively on managing portfolios, product customization, and innovative thinking. At the same time, it positions the firm to capitalize on the future of the asset management business. The definition of risk has forever changed in the minds of investors. Innealta's approach addresses this new reality and facilitates the movement of money between asset classes, for example, from equities to fixed income, in turbulent market environments."
Prior to founding Innealta in 2007, Dr. Buetow, 47, was CIO for XTF GAM, LLC. He also served as a Senior Portfolio Manager at Portfolio Management Consultants and Director of Research and Product Development at Atlantic Asset Management, LLC. In addition, Dr. Buetow was Vice President of Curriculum Development for the Association for Investment Management and Research. Dr. Buetow was also the Wheat First Professor of Finance and Director of the Quantitative Finance program at James Madison University. Dr. Buetow has published numerous articles in academic and practitioner journals and recently completed two books on term structure modeling and interest rate contingent claim valuation. Dr. Buetow holds a Ph.D. in Finance and Econometrics from Lehigh University. He also has a M.S. in Finance from the University of Texas at Dallas.
"AFAM brings an exceptionally strong management team, as well as incredible distribution skill and resources, that Innealta can leverage as it continues to grow," said Dr. Buetow, CIO of Innealta. "Our mission in combining with AFAM is to continue assisting clients with strategies that both preserve and enhance wealth. We believe in delivering innovative products that harness the benefits of ETFs and provide investors with exposure to multiple asset classes and investment styles in highly liquid, low cost portfolios."
To request more information, or to speak to a member of the AFAM team, please contact Katrine Winther-Olesen at 973-400-1341or email@example.com.
About Al Frank Asset Management (AFAM)
Founded in 1977, Al Frank Asset Management, Inc. is an independent registered investment advisor with over $423 million in assets under management (as of October 30, 2009). AFAM offers separately managed accounts and two proprietary mutual funds. Their value-oriented investment philosophy, based on the core tenets of selection, diversification and patience, is designed to meet the long-term investment goals of individuals, institutions, family offices and retirement plans. AFAM is also the editor and publisher of The Prudent Speculator. The newsletter was ranked #1* (not adjusted for risk) for the past 15, 20 and 25 years, according to The Hulbert Financial digest (as of September 30, 2009).
Al Frank Asset Management, Inc. is an Investment Adviser, registered with the Securities & Exchange Commission and notice filed in the State of California and various other states. For more information, please visit www.alfrank.com.
About Innealta Portfolio Advisors
Innealta Portfolio Advisors, LLC is an asset manager specializing in the active management of portfolios of Exchange Traded Funds. Innealta's competitive advantage is its quantitative investment strategy driven by a proprietary econometric model created by the company's founder. The company's focus is to capitalize on the attractive market environment for ETFs, tactical strategies, and low cost portfolio alternatives. For more information, please visit www.innealtaportfolioadvisors.com.
A newsletter's Hulbert Financial Digest's Ranking is based on an average of its several portfolios in the event it recommends more than one (and includes portfolios that the letters have discontinued). Through 09/30/09, The Prudent Speculator is ranked #1* out of 66, 43 and 21 newsletters monitored for 15, 20 and 25 years, respectively. Hulbert currently monitors over 160 investment newsletters. For more information about The Hulbert Financial Digest, go to hulbertdigest.com. Each investment decision you make should be determined with reference to the specific information available for such investment, and not based upon the success of past recommendations.
Exchange-Traded Funds (ETFs) are securities that trade actively throughout the day on an exchange and that are designed to track the aggregate price changes of the individual securities owned by the fund.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Past performance is not a guarantee of future results.
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