SOURCE: GL Capital Partners

FiComm Partners

September 24, 2014 09:00 ET

GL Capital Launches AdventAlts -- Research Platform and Fund Database Brings Unprecedented Alternative Investment Research to the Retail Marketplace

BOSTON, MA--(Marketwired - September 24, 2014) -

  • GL Capital announces the launch of AdventAlts, a proprietary research platform and investment fund database that houses unbiased and independent liquid alternatives data and analysis developed by GL Capital analysts.
  • AdventAlts analyzes investment funds that have previously been categorized as alternative strategies by Morningstar, Bloomberg and/or Daily Alts. Using a quantitative approach, GL Capital's research team evaluates funds based on performance characteristics, correlation with nominal GDP, sources of risk and market capitalization of the particular strategy or segment.
  • Of the 569 funds Morningstar, Bloomberg, and Daily Alts call liquid alternatives, only 191 meet AdventAlts' criteria to be classified as true alternative investments. 

GL Capital Partners, an asset manager and institutional investment advisor, today announced the launch of AdventAlts. This research platform and fund database provides financial advisers, portfolio managers, and individual investors detailed, independent analyses of investment funds that are defined as liquid alternatives by Morningstar, Bloomberg and/or Daily Alts. With AdventAlts, GL Capital Partners now offers the retail sector cutting edge research that has previously been available only to large institutions with substantial research resources.

For an investment to be classified as a liquid alternative, GL Capital asserts that the investment must exhibit returns uncorrelated with nominal GDP growth, derive risk primarily from non-systemic factors, have a sector or strategy with a total market value of less than three percent of the total addressable investment market, and be traded on a major exchange with reasonable daily liquidity. The GL Capital Partners 28-person research team creates and implements quantitative models to screen funds for these characteristics, often re-categorizes them to match the observed investment approach, and also comments on fund characteristics including volatility, expenses, and earnings, to offer insight into a liquid alternative's strategic role within a portfolio.

Of the 569 funds listed as liquid alternatives by Morningstar, Bloomberg, and/or Daily Alts, only 191 funds qualify as alternative investments according to AdventAlts. Furthermore, Morningstar's list of the top 11 alternative mutual funds by assets (see: Larson, Chris, "Hedge Funds Trounced in Liquid Alts Space, FundFire. 3 September 2014) includes seven funds that do not meet AdventAlts' liquid alternative criteria. Four of the seven disqualified funds have such a high correlation to the S&P 500 that they were automatically disqualified without further analysis. 

In today's volatile marketplace, investors are looking to alternative investments to support risk management initiatives in portfolio construction and are limited in these efforts due to the lack of information readily available on this attractive promise. AdventAlts supports this need for information by providing the retail marketplace with independent, high-level research that is free from advertorial conflict.

"As we've seen with Calpers' recently announced plan to exit hedge fund investments, the investment marketplace is changing and investors may be looking for cheaper, more flexible alternative investments," said Steve Brune, COO of GL Capital Partners. "We saw a need for unbiased, independent alternative research to help support this movement in the retail sector and have launched Advent Alts to help fulfill our mission of empowering the retail marketplace with institutional-level service and research."

Headed by Ansel Santos, the GL Capital Partners 28-person research team includes two PHD's, four CFA's, and two CFP's, who have an average of 10 years of experience in analysis of investments per analyst. The team is continuously researching and adding new funds to AdventAlts which is projected to reach 1,400 funds by the end of 2014. The platform will also house GL Capital Partners' Annual Report on Liquid Alternative Investments and additional white papers.

Dan Thibeault, Founder and President of GL Capital Partners, adds, "Registered investment advisers and individual investors are eager to enter this relatively new marketplace and should be armed with accurate information. As we began developing our research in-house, we saw the need in the retail sector for truly unbiased research on the alternative space and created AdventAlts to fill this void. We are thrilled to empower the retail sector with our findings and support retail investors' entrance into this promising marketplace."

About GL Capital Partners:

GL Capital Partners is a global asset manager and institutional investment advisor that provides liquid alternative strategies to the institutional and registered investment advisor marketplaces. Headquartered in Waltham, MA, GL Capital created and manages the GL Beyond Income Fund (ticker: GLBFX) and provides multiple managed account offerings. For more information on GL Capital Partners please visit www.glcp.com

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