MutualFundWire.com: Kinzie Unveils a 2-Strategy, 4-Subadvisor MF
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Tuesday, February 4, 2025

Kinzie Unveils a 2-Strategy, 4-Subadvisor MF


Kevin Kinzie and his team are partnering with a quartet of asset managers to power a new, two-strategy open-end, liquid alts mutual fund.

Last week, Kinzie, CEO of LoCorr Funds [profile], unveiled the launch of the LoCorr Strategic Allocation Fund. Minneapolis-based LoCorr Fund Management LLC serves as the new fund's investment advisor, while there are four subadvisors: BH-DG Systematic Trading LLP, Crabel Capital Management LLC, P/E Global LLC, and Morgan Stanley's Parametric Portfolio Associates, LLC [profile].

The LoCorr Strategic Allocation Fund's inception date was January 8. It comes in two flavors: A shares (LSAAX), with a minimum initial investment of $2,500, an up-front load of up to 575 basis points, a deferred load of up to 100bps, and an expense ratio of 184bps; and I shares (LSAIX), with a minimum initial investment of $100,000, no load, and an expense ratio of 159bps. (Both expense ratios bake in a 19bps fee waiver promised through April 30, 2026.)

The new fund is powered partly by a tax-managed U.S. equity strategy (handled by the team at Parametric) and partly by futures strategies (including trend following) (handled by the teams at BH-DG, Crabel, and P/E). The fund's ten-person PM team includes:
  • Jon Essen, chief financial officer of LoCorr;
  • David Gorton, chief investment officer of BH-DG;
  • Sean Katof, CIO of LoCorr;
  • Curt LaChappelle, portfolio manager at LoCorr;
  • Jennifer Mihara, head of equity fund management at Parametric;
  • Warren Naphtal, president and CIO of P/E;
  • Michael Pomada, president and CEO of Crabel;
  • David Souza, Jr., co-head of research at P/E; and
  • Gordon Wotherspoon, head of equity SMA at Parametric.


    • Kinzie describes the new fund as being powered by "a next-generation strategy diversifying equity risk by combining tax-managed equities and managed futures to position the portfolio for better risk-adjusted returns."

    "With markets at all-time highs, we have seen a growing appetite for strategies that can profit if the current equity bull market continues but can also potentially mitigate the downside if we enter a bearish environment," Kinzie states.

    The LoCorr Strategic Allocation Fund is a series of the LoCorr Investment Trust. The fund's other service providers include: Cohen & Company, Ltd. as independent accounting firm; ACA Foreside's Quasar Distributors, LLC as distributor; 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.


    Printed from: MFWire.com/story.asp?s=69485

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