The Litman Gregory Masters Alternative Strategies Fund

 

About the fund

A fund created for risk-averse investors seeking:

  • Diversification for traditional stock and bond portfolios
  • Reduced portfolio volatility
  • Opportunity for enhanced returns relative to various measures of risk
  • Reasonable fees

Learn more about the fund

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Why we created this fund

In the years ahead, we believe there will be mediocre returns and higher volatility from stocks, and low returns from bonds. For this reason we have done extensive research to identify “alternative” strategies that we believe are not highly dependent on tailwinds from stocks and bonds to generate returns. What we found in terms of publicly available options was generally disappointing. However, we were able to identify several managers running alternative strategies whom we believe to be highly skilled, and we were able to bring them together in our own fund. This fund provides many of the important characteristics we sought, including:

  • Daily liquidity
  • Reasonable fees
  • Managers we believe have a clear edge in their strategy
  • Strong track records
  • Strategies with relatively low expected risk and correlation to traditional financial assets
  • Strategies with low correlations to one another and that collectively provide a great diversification benefit

 

Four highly skilled managers Learn more about the fund

Leveraging our experience advising our five equity funds, we've chosen four managers we believe to be highly skilled in their respective strategies.

Manager Company Strategy
Matt Eagan & team Loomis Sayles Absolute-Return Fixed-Income
John Orrico & team Water Island Capital Arbitrage Strategy
Jeffrey Gundlach DoubleLine Opportunistic Fixed-Income
Steven Romick & team FPA Contrarian Opportunity

We believe each manager brings a distinct and complementary investment style to the portfolio and a strong risk management focus. The multi-strategy structure of this fund provides the managers additional flexibility to pursue opportunities that would not otherwise be available to them in a single-strategy public fund.

 

The Litman Gregory Masters Funds monthly email provides investors a way to stay in touch with us and receive information regarding the Litman Gregory Masters Funds and investment principles in general. Topics may include updates on the funds and managers, further insights into Litman Gregory's processes, and commentary on various aspects of investing.

 
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