Mutual funds

Cognios Capital launches market neutral large cap mutual fund

Cognios Capital has launched the Cognios Market Neutral Large Cap Fund, the firm’s inaugural mutual fund which aims to provide individuals and institutions with an investment product previously reserved for hedge fund clients.

The investment strategy of the fund aims to outperform the S&P 500 Index over time by purchasing and selling short large capitalisation US equities through its proprietary ROTA/ROME valuation method.

“In times of unpredictable and volatile markets, investors are seeking long-term performance regardless of market conditions and a management team they can trust,” says John Brandmeyer, chief executive officer of Cognios Capital. “The goal of this new mutual fund is to give retail investors access to a proprietary long/short equity strategy. Strategies of this type have generally only been available to institutions and wealthy individuals through hedge funds.”

The fund differs from traditional long-only mutual funds by employing risk management techniques, such as the use of hedging through short sales. This hedging strategy has the potential to limit the downside risk of the portfolio, as well as the potential to generate alpha for the fund. Additionally, the fund is uniquely indexed to the S&P 500, whereas most market neutral funds are indexed to treasury bills.

“There is increasing demand from retail investors for expertise in alternative investment management, particularly for investment options that are liquid and less correlated to broader equity markets,” says Jon Angrist, chief investment officer of Cognios Capital. “Our new long/short mutual fund approach responds well to these demands and offers a new strategy for retail investors to diversify their portfolios.”

The no-load fund offers two classes of shares – an investor class (COGMX) and an institutional class (COGIX). The minimum investment is USD1,000 for the investor class and USD100,000 for the institutional class. Investors generally may meet the minimum investment amount for the institutional class by aggregating multiple accounts within the fund, if desired. There is no subsequent investment minimum. The fund launched with an initial USD10m of seed capital from management.

The Wealth Adviser Awards 2013 for the top wealth manager and service providers will be held in London towards the end of Q1 2013. Please click here to nominate your product/firm.

Further reading



Upcoming events

3 days 12 hours from now - Kuala Lumpur
3 days 12 hours from now - California
4 days 12 hours from now - Las Vagas

Upcoming training

Mon, 10/11/2014 (All day) - London
Mon, 10/11/2014 (All day) - London
Thu, 13/11/2014 (All day) - London