NEWPORT BEACH, Calif., June 30, 2016 (GLOBE NEWSWIRE) — LongTail Alpha LLC today announced that Janus Capital Group Inc. has taken a minority interest in the firm. The terms of the investment agreement were not disclosed.
Founded in early 2016, LongTail Alpha focuses on adding value to portfolios during volatile markets, especially during periods in which unanticipated events create large market moves, both up and down. The firm intends to run at least two investment strategies, a “OneTail Hedge” strategy and a “TwoTail Alpha” strategy. These strategies may be run in separately managed accounts for clients or in funds. LongTail Alpha’s “OneTail Hedge” strategy will seek to manage downside risk of investment portfolios during large market shocks. The market-neutral “TwoTail Alpha” strategy seeks to benefit from extracting value from the tails of the probability distributions embedded in asset prices. The strategy invests in options, futures, swaps and other derivatives, in addition to a wide variety of cash securities across all asset classes.
“Most market participants have been conditioned over two and a half decades of falling inflation, low volatility and central bank effectiveness into thinking about investing in a specific way,” said Dr. Vineer Bhansali, Founder and Chief Investment Officer of LongTail Alpha. “We believe that many of these macroeconomic conditions have already changed, and we are in the early years of a multiple decade environment in which very different techniques for portfolio construction will be necessary for building more robust portfolios. This is an area that LongTail Alpha specializes in, and this collaboration is a natural and critical step in bringing our experience and expertise to our clients.’’
About LongTail Alpha LLC
LongTail Alpha was founded in early 2016 by Vineer Bhansali, following his departure from PIMCO in December of 2015. LongTail Alpha believes that sustained portfolio performance comes from expecting the unexpected, and from positioning portfolios to earn yield while maintaining convexity. The firm bases its investment decisions on a proprietary framework based on academically rigorous research, positioning for both “left-side” or negative tail risks and “right-side” or positive tail risks, and by optimizing performance by combining market positions and risk allocation across asset classes. LongTail Alpha is a member of the National Futures Association and is registered with the U.S. Commodity Futures Trading Commission, and operates as an independent entity in Newport Beach.
About Janus Capital Group Inc.
Janus Capital Group Inc. (JCG) is a global investment firm dedicated to delivering better outcomes for clients through a broad range of investment solutions, including fixed income, equity, alternative and multi-asset class strategies. It does so through a number of distinct asset management platforms, including investment teams within Janus Capital Management LLC (Janus), INTECH Investment Management LLC (INTECH), Perkins Investment Management LLC (Perkins) and Kapstream Capital Pty Limited (Kapstream), in addition to a suite of exchange-traded products. Each team brings distinct asset class expertise, perspective, style-specific experience and a disciplined approach to risk. Investment strategies are offered through open-end funds domiciled in both the U.S. and offshore, as well as through separately managed accounts, collective investment trusts and exchange-traded products. Based in Denver, JCG has offices located in 12 countries throughout North America, Europe, Asia and Australia; the firm had complex-wide assets under management and ETP assets totaling $191.3 billion as of March 31, 2016.
Investing involves risk, including the possible loss of principal and fluctuation of value. There is no assurance that the investment process will consistently lead to successful investing. Any portfolio risk management process discussed includes an effort to monitor and manage risk which should not be confused with and does not imply low risk or the ability to control certain risk factors.
Derivatives involve risks in addition to the risks of the underlying securities, including gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. No investment strategy can ensure a profit or eliminate the risk of loss.
CONTACT: Media contact: Seth Lubove Sitrick [email protected] (310) 788-2850