Cozad Small Cap Value Fund
Cozad Small Cap Value Fund will seek long term capital appreciation by investing domestic small cap stocks, with an anticipated holding period of 12-18 months. The underlying strategy calls for portfolio rebalancing every three or four months and, if the signals are right, it might “liquidate investment positions and hold the proceeds in money market funds, other highly liquid obligations or the electronically-traded iShares Russell 2000 Value Index Fund.” The manager will be David Wetherell of Cozad Asset Management. This represents the conversion of a hedge fund of the same name but they have not yet released that fund’s track record. The initial expense ratio is 1.55%and the minimum initial investment is $2,500.
Dodge & Cox Global Bond Fund
Dodge & Cox Global Bond Fund will seek a high rate of total return consistent with long-term preservation of capital. They target a diversified portfolio of investment grade bonds and have the power to hedge the portfolio. The fund will be managed by Dodge & Cox’s seven-person Global Bond Investment Policy Committee. This portfolio operated as a hedge fund (their term: “a private fund”) from December 2012 until its conversion in May 2014. In 2013 the fund made 2.6% while its benchmark, the Barclays Global Aggregate Bond index, lost 2.6%. The initial expense ratio is 0.60% and the minimum initial investment is $2,500, reduced to $1,000 for IRAs.
Lazard Emerging Markets Income Portfolio
Lazard Emerging Markets Income Portfolio will seek total return consistent with the preservation of capital by investing in currencies, debt securities, and derivative instruments and other investments that are economically tied to emerging market countries. A key driver of performance will be the intention to invest in very short term securities and higher-yield debt. The managers will be Ardra Belitz and Ganesh Ramachandran. Both have been managers on Lazard’s EM income team for more than a decade. The initial expense ratio is 1.20 %and the minimum initial investment is $2,500.
Lazard Fundamental Long/Short Portfolio
Lazard Fundamental Long/Short Portfolio will seek capital appreciation with a hope for principal preservation by investing, long and short, in a mostly domestic equity portfolio. They describe themselves as “relative value” investors looking to invest in “companies with strong and/or improving financial productivity that have attractive valuations.” They will at the same time short the stock of firms with “deteriorating fundamentals, unattractive valuations or other qualities warranting a short position.” The fund might be anywhere from 100% long to 25% net short. The managers will be a team led by Dmitri Batsev. The initial expense ratio is 1.95%and the minimum initial investment is $2,500.
Payden Strategic Income Fund
Payden Strategic Income Fund will seek total return combined with income generation that is consistent with preservation of capital by investing globally in pretty much anything that might generate income, from US dividend-paying stocks to EM bonds and convertibles. They anticipate investing in both developed and developing markets and in both investment grade and high-yield debt. The manager will be Michael Salvay, CFA, a Managing Principal at Payden. The initial expense ratio is 0.80%and the minimum initial investment is $100,000, though it’s likely that lower minimum shares will become available through the various fund supermarkets.
Vertical Capital Innovations MLP Fund
Vertical Capital Innovations MLP Fund will seek long-term capital appreciation and current income through a diversified portfolio of investments in infrastructure and master limited partnerships. They intend to pay out a regular, consistent dividend at a range approximating what they receive from the MLPs. One red flag is that the fund, like many MLP funds, will not be organized as a typical open-end mutual fund; but instead will be organized as and taxed as a corporation. The managers will be Michael D. Underhill and Susan L. Dambekaln of Capital Innovations, LLC. The initial expense ratio is 1.75%for Advisor class shares and the minimum initial investment is $1,000.
Vertical Capital Lido Managed Volatility Fund
Vertical Capital Lido Managed Volatility Fund will seek capital appreciation while seeking to limit short term risk. It will be a fund of funds, investing in 8-12 funds that give it the best risk-adjusted performance. They’ll target volatility of 30-70% of the S&P 500s. Stocks, bonds, domestic, global, emerging, options, futures, long, short. The manager will be Jason Ozur of Lido Advisors. The prospectus doesn’t offer any documentation of Mr. Ozur’s success in executing this strategy. The initial expense ratio is 1.75%and the minimum initial investment is $1,000 for Advisor class shares which carry a sales load.
Whitebox Unconstrained Income Fund
Whitebox Unconstrained Income Fund will seek a high level of total return and low portfolio volatility. Their universe is anything that produces income. Their plan is to use three broad strategies: (1) dynamically allocating between asset classes; (2) seeking the best investments in each class through bottom-up research; and (3) from time to time, hedge the portfolio. The fund will be managed by the usual gang. The initial expense ratio is 1.67%and the minimum initial investment is $5,000, reduced to $1,000 for tax-deferred accounts.
