The folks at a Minneapolis area liquid alts asset manager are teaming up with a familiar quintet of allies to power their newest open-end mutual fund.
| Kevin Michael Kinzie LoCorr Fund Management, LoCorr Distributors CEO | |
Yesterday,
Kevin Kinzie, CEO of Excelsior, Minnesota-based
LoCorr Funds [
profile],
unveiled the
launch of the
LoCorr Hedged Core Fund. LoCorr Fund Management, LLC serves as the new fund's investment advisor, and the new offering also includes five subadvisors:
Graham Capital Management, L.P. (GCM);
Millburn Ridgefield LLC, with its
Diversified Program;
Nuveen Asset Management, LLC;
R.G. Niederhoffer Capital Management, inc., with its
Smart Alpha Program; and
Revolution Capital Management, LLC.
The LoCorr Hedged Core Fund's inception date was July 10. It comes in two flavors: A shares (LHEAX), with a $2,500 minimum initial investment, a maximum up front load of 575 basis points, a maximum deferred load of 100bps, and an expense ratio of 224bps; and I Shares (LHEIX), with a $100,000 minimum initial investment, no up front or deferred loads, and an expense ratio of 199bps. Both expense ratios bake in a 16bps fee waiver promised through April 30, 2026.
The new mutual fund is powered by a trio of principal strategies: a commodities strategy, a fixed income strategy, and a managed futures strategy. The Fund's PM team includes:
Peterr Agrimson, PM at Nuveen;
Harvey Beker, co-chairman of Millburn;
Pablo Calderini, president and chief investment officer of GCM;
Jon Essen, chief financial officer of LoCorr;
Barry Goodman, co-CEO and executive director of trading at Millburn;
Sean Katof, senior vice president at LoCorr;
Michael Mundt, principal and chief compliance officer of Revolution;
Roy Niederhoffer, founder of his eponymous shop;
Theodore Robert Olson, principal of Revolution;
Tony Rodriguez, PM at Nuveen;
Grant Smith, co-CEO and CIO of Millburn; and
Kenneth Tropin, chairman of GCM.
Kinzie puts the launch in the context of rising "advisor demand for '40 Act structure mutual funds with the abilityto provide diversification and deliver a differentiated return stream."
"As advisors build a strategic allocation ot low-correlating strategies, we are excited to add the Hedged Core Fund to our lineup," Kinzie states.
The LoCorr team notes that the new LoCorr Hedged Core Fund's underlying managers are a combination of the managers powering LoCorr's two most popular funds: the $1.68-billion-AUM
Macro Strategies Fund and the $873-million-AUM
Long/Short Commodities Strategy Fund.
The new fund's other service providers include:
Cohen & Company, Ltd. as independent accounting firm;
Quasar Distributors, LLC as distributor and principal underwriter;
Thompson Hine LLP as counsel; U.S. Bancorp Fund Services, LLC (dba
U.S. Bank Global Fund Services as administrator, dividend disbursing agent, fund accountant, shareholder servicing agent, and transfer agent; and U.S. Bank, N.A. as custodian. 
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