Fund Watch: BMO, JPMorgan, Active Alts, Deer Park And Hanlon

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Includes: LGSH
by: Brian Haskin

By DailyAlts Staff

In this edition of Fund Watch, new filings from:

  • BMO (NYSE:BMO) Global Long/Short Equity Fund
  • Active Alts Long/Short U.S. Equity Fund
  • JPMorgan (NYSE:JPM) Diversified Return Hedged International Equity ETF
  • Deer Park Total Return Credit Fund
  • Hanlon Tactical Dividend Momentum Fund
  • Hanlon Managed Income Fund

BMO Global Long/Short Equity Fund

On June 12, BMO Funds, Inc. filed paperwork with the Securities and Exchange Commission (SEC) announcing its plan to launch the BMO Global Long/Short Equity Fund. The fund, which will be available in investor- and institutional-class shares, as well as a pair of R classes intended for eligible retirement plans, will pursue an investment objective of capital appreciation through taking long and short positions in equity securities based in the U.S. and abroad, with at least 40% of its assets invested in non-U.S. companies.

The fund's investments will be selected using a combination of bottom-up and top-down analysis, with long investments in fundamentally strong firms with good balance sheets; and short positions in fundamentally weak firms. Jay Kaufman, Ernesto Ramos and David Rosenblatt will be the fund's portfolio managers.

Active Alts Long/Short U.S. Equity Fund

For investors more interested in domestic long/short exposure, ETF Issuer Solutions (ETFis) plans to launch the Active Alts Long/Short Equity Fund (LGSH) (an exchange traded fund, or ETF), according to a June 8 filing with the SEC. The fund's objective will be long-term capital appreciation with an emphasis on income, and it will pursue these ends by means of a bottom-up security-selection approach.

Sub-advisor Active Alts will attempt to identify large- and mid-cap companies with good management and improving fundamentals for the fund's long positions, and the opposite for its short positions. The fund's investment strategy involves keeping both gross and net exposure below 100% under normal circumstances.

A few fund details are as follows:

  • Management fee of 1.55%
  • Expense ratio of 1.85%
  • Exchange listing: NASDAQ

The fund will be managed by Brad Lamensdorf, founder of Active Alts. The firm has also filed, via ETFis, for the the Short Squeeze Fund.

JPMorgan Diversified Return Hedged International Equity ETF

On May 29, JP Morgan filed a Form N-1A with the SEC announcing its plan to launch the JPMorgan Diversified Return Hedged International Equity ETF later this year. The ETF is designed to track the FTSE Developed ex-North America Diversified Factor 100% Hedged to USD Index, which was developed to represent international stock performance with foreign-currency risk hedged out.

The ETF's holdings will be selected using a rules-based, proprietary factor methodology, with an emphasis on relative valuation, price momentum, low volatility, and specific market capitalization. Holdings may include large- and mid-cap stocks from developed countries, and equity positions are rebalanced quarterly.

Deer Park Total Return Credit Fund

Northern Lights Trust Fund filed paperwork with the SEC on June 8, announcing the intended launch of the Deer Park Total Return Credit Fund, a nontraditional bond mutual fund. Sub-advisor Deer Park Road Management - led by portfolio managers CEO Michael Craig-Scheckman and CIO Scott Burg - will pursue capital appreciation and current income by investing primarily in asset-backed securities (NYSE:ABS) backed by real estate. This includes mortgage-backed securities (MBS) of residential and commercial varieties, and may include subprime investments. Deer Park will attempt to derive portfolio returns through fundamental analysis and security selection, seeking to identify and capitalize on attractive investment opportunities in the MBS and ABS markets.

Hanlon Tactical Dividend Momentum Fund

Two Roads Shared Trust plans to launch the Hanlon Tactical Dividend Momentum Fund by August 12, according to paperwork filed with the SEC on May 29. The fund is expected to go live within 75 days of the filing date.

The Hanlon Tactical Dividend Momentum Fund seeks capital appreciation and current income, and it will pursue these ends by following a rules-based strategy that includes sector tactical overlay and ranking selection elements. The fund will track a custom index composed of stocks from each of the nine economic sectors in the U.S. economy, and it will use tactical algorithms to determine what sectors, and dividend-paying stocks within those sectors, are the most attractive stocks to buy.

Hanlon Managed Income Fund

As part of that same filing as above, Two Roads Trust also announced the pending launch of the Hanlon Managed Income Fund, which will attempt to provide current income, capital appreciation, and positive risk-adjusted returns by investing primarily in ETFs, including "long-inversed" products that mimic short-selling. The fund will use technical analysis and trend-following to tactically manage its holdings, attempting to avoid large drawdowns, and when the market signals a pending correction, the fund is designed to "go defensive."