New York – Northwater Capital Management Inc. announced today the launch of the Northwater Portable Alpha U.S. Bond Fund and the Northwater Portable Alpha U.S. Equity Fund. Both funds are structured as portable alpha offerings, with investors choosing a targeted market index exposure in their choice of fund — either the Lehman Aggregate Bond Index for the Northwater Portable Alpha U.S. Bond Fund and/or the S&P 500 for the Northwater Portable Alpha U.S. Equity Fund.
The active management source for each of the new funds comes from Northwater’s market-neutral fund of hedge funds portfolio. This innovative portable alpha structure targets an after-fee alpha return of 275 to 475 basis points in excess of the respective market index.
“These new funds let investors access our extensive experience in managing portable alpha mandates, but with the ease of accounting, reporting and performance attribution that a pooled fund structure provides,” says Bob Kulperger, Vice President, Northwater Capital.
Both of the new funds utilize Portfolio Platform(TM) — Northwater’s full- service policy implementation offering — to achieve derivative exposure to the target indices and the integration of Northwater’s market-neutral fund of hedge funds portfolio.
