"The Massachusetts-based firm, which runs private strategies like hedge funds and alternative-flavored ETFs, believes there's a market correction coming, and the fund is a chance for institutional investors to "successfully invest on the short-side of the market," a fund document states. "We felt it was an opportune time to bring back the concept," said Jeff Landle, the chief investment officer of the firm, which grew out of a family office for wealthy founders of other asset managers. "This is a way for investors to get a hedge on their downside with experts," said Landle, a former executive at European asset managers HVB Alternatives and Hardt Group, as well as Connecticut-based Commonfund."
"In 2007, Little Harbor introduced this strategy for the first time in the hopes of taking advantage of a market downturn. The bet proved prescient as the global financial crisis tanked markets, and the strategy, which started with just $6 million, swelled to more than $100 million before it was shuttered in 2011 after making "outsized returns" during the market downturn, according to Landle. Landle declined to share performance figures due to SEC marketing rules."
Little Harbor Advisors, an asset manager with $250 million under management, is reprising a short-seller-only strategy it first launched in 2007. The firm expects a market correction and plans a fund that could raise more than $100 million. The previous incarnation began with $6 million and grew to over $100 million before closing in 2011 after making "outsized returns" during the global financial crisis. The revived strategy will allocate to four external short-selling funds—Orso Partners, Kingsford Capital, Contrarian Alpha Management, and Teixeira Partners—and three internal portfolio managers who trade for Little Harbor. Jeff Landle, chief investment officer, described the fund as a way for investors to hedge downside with experts.
Read at Business Insider
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