Neuberger Berman selected The Boston Co., Cramer Rosenthal McGlynn, GAMCO Asset Management, Levin Capital Strategies, MacKay Shields, Sound Point Capital Management, Turner Investments and Visium Asset Management as subadvisers for the Neuberger Berman Absolute Return Multi-Manager Fund, which was launched by the firm Monday.
In a telephone interview, David Kupperman, a managing director with Neuberger Berman's hedge fund-of-funds team, said the firms, which run liquid strategies that don't employ a lot of leverage, will manage separate accounts for the mutual fund, with the Neuberger team dynamically overseeing asset allocation.
Mr. Kupperman said the Neuberger team sees relatively attractive opportunities in the event-driven hedge fund space, and the initial lineup of hedge fund subadvisers includes two event-driven managers: Levin Capital Strategies and Visium Asset Management. Among the other managers, The Boston Co. runs a small- and midcap equity long/short strategy; Cramer Rosenthal McClynn oversees a global equity long/short strategy; GAMCO Asset Management does merger arbitrage; MacKay Shields does credit long/short; and Sound Point manages a stressed and distressed credit portfolio.
As market opportunities present themselves, Mr. Kupperman said Neuberger's team will add new subadvisers to the fund lineup.
Unlike the typical hedge fund, the mutual fund's subadvisers won't earn a performance fee, which can typically amount to 20% of investment gains; overall fees of 2.46% to 2.82% per mutual fund share class should be attractive for investors looking to garner solid returns with less volatility, Mr. Kupperman said.
