MutualFundWire.com: 361 Capital Ups its Mutual Fund Count to Three

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Friday, January 13, 2012

361 Capital Ups its Mutual Fund Count to Three

Alternative investment shop 361 Capital [profile] unveiled a pair of mutual funds last month. The launch of the 361 Long/Short Equity Fund and the 361 Managed Futures Strategy Fund brings the number of 361 mutual funds to three.

Tom Florence
361 Capital
CEO

"We wanted to offer the strategies we've been managing in a simple and easily accessible vehicle," said 361 Capital CEO Tom Florence in an interview.

"People are looking for more liquid and transparent alternative investment vehicles," he added.

The managed futures fund was seeded with $10 million and the long/short fund was seeded with $5 million.

The 361 Managed Futures Strategy Fund carries expense ratios of 263 basis points for A shares and 238 bps for I shares. [prospectus]

As for the Long/Short Equity Fund, expense ratios are 246 bps for A shares and 221 bps for I shares.[prospectus]

Denver-based 361 Capital entered the mutual fund business in 2010 with the rollout of the 361 Absolute Alpha Fund.

361 Capital sells its offerings solely through intermediaries. Josh Vail, who serves as national investment specialist, leads a team of four hybrid wholesalers.

Meanwhile, 361 Capital is working on a "first of its kind product in the alternative space" and is looking for a distribution partner, Florence confided.

361 Capital hopes to bring the product to market in the second half of the year. 361 Capital has yet to determine whether the product will be in a mutual fund format or another investment vehicle.

Company Press Release

361 Capital Launches Two New Mutual Funds
361 Long/Short Equity Fund and 361 Managed Futures Strategy Fund

DENVER--361 Capital, a provider of alternative investment portfolios to institutions, financial intermediaries, and high-net-worth investors, today announced the launch of two mutual funds built on two of the firm’s existing alternative strategies, the 361 Long/Short Equity Fund and the 361 Managed Futures Strategy Fund.

The new funds are intended to complement the firm's existing market neutral mutual fund, the 361 Absolute Alpha Fund, offering advisors additional alternative investment strategies for their clients.

"Our philosophy begins with the belief that alternative investments have a place in most investment portfolios," said Tom Florence, CEO of 361 Capital. “Providing access to two more of our proprietary strategies through liquid mutual funds will allow investors and their advisors to utilize alternatives in their asset allocation models."

New Funds Based On Proven Strategies

The 361 Long/Short Equity Fund (Class A Shares: ALSQX and Class I Shares: ALSZX) seeks to outperform the S&P 500 Index and the HFRX Equity Hedge Index with lower volatility and lower correlation. The Fund employs a strategy that seeks to evaluate and replicate the returns of long/short hedge fund strategies through the use of ETFs. 361 Capital has previously been managing the long/short equity strategy in a separate account portfolio.

The 361 Managed Futures Strategy Fund (Class A Shares: AMFQX and Class I Shares: AMFZX) seeks positive absolute returns that have a low correlation to the returns of the broad stock and bond markets. The Fund attempts to track the firm’s proprietary 361 Capital Systematic Index, a rules-based index that generates counter-trend signals based on a combination of medium-term price and volume trends on the equity markets. With its actively-managed futures strategy, the Fund’s goal is to capitalize on both up and down moves in various markets. 361 Capital has been offering a similar counter-trend strategy in a hedge fund form.

"We're convinced that alternatives will play a greater role in most investment portfolios as investors and their advisors become more educated on how to best use them," says Mr. Florence. "Our single focus is to create alternative investment products that will help meet that need."

To assist advisors and their clients in understanding and utilizing different alternative strategies, 361 Capital has created the "361 Alternatives Education Center." The AEC can be accessed through 361 Capital's website.

About 361 Capital

361 Capital is a Registered Investment Advisor focused on managing portfolios of alternative investments that preserve capital in volatile markets through proven risk management strategies. Founded in 2001, the Denver-based firm launched its first mutual fund--the 361 Absolute Alpha Fund--in 2010. In addition to its current suite of mutual funds, the firm manages portfolios that replicate hedge funds and hedge fund indexes using simple ETFs. 361 Capital's products are distributed through investment advisors and institutions.