A firm founded by the co-founders of Absolute Investment Advisers has leapt into the '40 Act world with a product designed to hedge against inflation via six sub-advisors.

This firm is North Peak Asset Management, which is run by a team that includes Michael Hanus and Alec Petro, both co-founders of Absolute. Other members of the team include Brian Chen (who had been Absolute's lead quant analyst), Tripp Neville, and Cory Pavlik

Absolute is a Boston-based $4.3 billion investment management firm that runs a family of absolute return mutual funds.

North Peak's first foray into mutual fund territory is the Inflation Hedges Strategy fund, which is a multi-asset class, multi-manager mutual product designed to provide current income and real (after inflation) total returns.

According to the company, the fund primarily invests in asset classes that are sensitive to increases in inflation, such as commodities, global natural resource equities, bank loans and inflation linked bonds (such as Treasury Inflation-Protected Securities).

It is run by six specialist sub-advisors: Wellington Management Company; Parametric Portfolio Associates; Mellon Capital Management Corporation; Commodity Strategies AG; City of London Investment Group and The Boston Company Asset Management.

Before launching North Peak, Hanus was a vice president at Wellington Management, and before that was a senior vice president at Pyramis Global Advisors, where he was responsible for the firm’s Hedge Fund business and was responsible for the design, development and launch of Pyramis’ Long/Short, Market Neutral and 130/30 investment strategies.

Here is the press release:

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Company Press Release

North Peak Asset Management Introduces Inflation Hedges Strategy Fund

  (April 15, 2013; Duxbury, MA)  North Peak Asset Management has announced the launch of its Inflation Hedging mutual fund, the Inflation Hedges Strategy fund (tickers:  INHIX, INHRX), a multi-asset class, multi-manager mutual fund, designed to provide current income and real (after inflation) total returns. The Fund primarily invests in asset classes that are sensitive to increases in inflation, such as commodities, global natural resource equities, bank loans and inflation linked bonds (such as Treasury Inflation-Protected Securities) using six specialist sub-advisors: Wellington Management Company, LLP; Parametric Portfolio Associates, LLC; Mellon Capital Management Corporation; Commodity Strategies AG; City of London Investment Group and The Boston Company Asset Management, LLC.

  Michael Hanus, Portfolio Manager of the Inflation Hedges Strategy fund comments, “We believe inflation is the greatest risk to a portfolio and many investors are not adequately prepared. Historically, inflation has been persistent; it also tends to come as a shock rather than gradually. Independent research indicates that investors should consider allocating  10% to 20% of a portfolio’s assets to inflation sensitive asset classes in order to address the threat that unexpected increases in inflation poses to investor portfolios. 

  He added, “We’ve chosen six specialist institutional investment firms as sub-advisors that normally can only be accessed by pension funds, endowments and foundations.”

  Inflation Hedging mutual fund, the Inflation Hedges Strategy fund (tickers:  INHIX, INHRX) is available on over 250 domestic platforms, including Schwab, Fidelity® FundsNetwork® and Pershing or can be purchased directly from www.NorthPeakAM.com or by calling 1-855-294-7538.

  About North Peak Asset Management North Peak Asset Management is an independent SEC-Registered Investment Adviser that builds institutional-quality, risk-based investment solutions for financial professionals. The firm was founded in 2011 by Michael Hanus and Alec Petro who, along with co-Portfolio Manager Brian Chen, were co-Founders of Absolute Investment Advisers (AIA), a $4.3 billion investment management firm that runs a family of Absolute Return mutual funds.

    Mutual Funds involve risks including the possible loss of principal.  There is no that any investment will achieve its objectives, generate positive returns or avoid losses.

  The Fund may invest in derivatives, commodities, futures, options, swaps, structured notes, and natural resource investments, exposing the Fund to additional risks including increased volatility, lack of liquidity, and possible losses greater than the Fund’s initial investment as well as increased transaction costs

  The Fund may also invests in fixed income and inflation indexed securities could lose value due to interest rate changes or deflation, and are subject to price shifts, prepayment, credit risks and market expectations.  Investments in foreign fixed income issuers involve increase risk due to adverse issuer, political, regulatory, currency, market, or economic development and may become less liquid and difficult to value and result in loss. 

  Investors should carefully consider the investment objectives, risks, charges and expenses of the Inflation Hedges Strategy Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained at www.northpeakam.com or by calling 855-294-7538. The prospectus should be read carefully before investing. The Inflation Hedges Strategy Fund is distributed by Northern Lights Distributors, LLC, member FINRA. 0815-NLD-4/5/2013

  North Peak Asset Management, LLC., is not affiliated with Northern Lights Distributors, LLC.

  Fidelity and FundsNetwork are registered service marks of FMR LLC

 

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