Forward Launches New Growth Fund With Long/Short Equity Strategy Focused on Disruptive Technologies
New mutual fund makes existing hedge fund strategy available to mainstream investors
SAN FRANCISCO, Feb. 2, 2012 /PRNewswire/ -- Forward Management, LLC ("Forward") has announced the launch of the Forward Endurance Fund (FENIX), an equity mutual fund that seeks growth and positive absolute returns by investing both long and short in companies affected by disruptive technologies.
The fund invests with a strategy similar to that employed by the Forward Endurance limited partnership launched in March of 2011. The fund focuses on transformative, global growth opportunities, identifying what we believe to be 'winners' and 'losers' across a variety of industry sectors. Currently, these sectors include: technologies across mobile, Internet and cloud computing; energy and related areas such as clean tech and energy efficiency; and international emerging markets. The fund is authorized to invest in publicly traded equities globally, including initial public offerings (IPOs).
Portfolio manager for the fund is David Readerman, CFA, a 28-year industry veteran who has been immersed in the worlds of equity research, investment banking, and venture funding since the early days of Microsoft and Apple. He is supported by a dedicated senior analyst and draws on the resources of other specialized Forward portfolio teams in areas such as infrastructure and small-cap equity as he identifies and researches investment themes.
"Globalization has dramatically compressed the time period between introduction and mass adoption of new technologies. Moreover, this process of technology adoption appears to be occurring independent of macroeconomic events," said Readerman. "What's often overlooked is that this process not only creates enterprise value, but also destroys it, so change is expressed in both long and short investment opportunities. During the dot-com run-up between 1998 and 2000, most investors missed the opportunity in business models that were superseded by others and simply went away."
The Endurance team's investment process blends deep, fundamental analysis of companies, including face-to-face meetings with management, with modeling of product performance and stock valuation. In researching trends, analyzing stocks, and seeking access to IPOs, the team draws on Readerman's extensive network of contacts in the venture capital and investment banking communities.
The Endurance fund launch advances the continuing expansion of Forward's alternative fund lineup. Over the past three years Forward has built a set of 16 alternative mutual funds, separate account strategies and private funds representing more than $3.1 billion out of Forward's total of $5.1 billion in assets under management (as of December 31, 2011). Under the heading of "alternative," Forward includes products that either provide exposure to alternative asset classes, such as real estate, commodities, and frontier markets, or apply alternative techniques, such as hedging and long/short investing, to equity and fixed-income strategies. Forward ranked among the top 20 U.S. asset managers in terms of alternative asset flows between January 1 and November 30, 2011, according to Strategic Insight.
"Many of Forward's alternative funds are designed to help investors dampen volatility, cope with high correlations, and find new income sources in a low-yield environment. With its focus on transformational technology trends, the Endurance fund reminds us that growth opportunities still abound in this era of accelerating global change," said J. Alan Reid, Jr., CEO of Forward. "The fund's long/short strategy lets investors take advantage of those opportunities while keeping a lid on volatility."
Readerman joined Forward after a seven-year tenure at Marsico Capital Management, where he was a senior investment analyst with research responsibilities in global equity portfolios spanning technology, energy, consumer, and industrial sectors. He was previously a founding partner with Thomas Weisel Partners Group, Inc., and earlier led the software and Internet teams at Montgomery Securities. His twenty years of sell-side experience included stints with Shearson Lehman Hutton and Smith Barney. He is a Chartered Financial Analyst and holds an MBA in Finance from New York University's Leonard N. Stern School of Business. He is a member of the San Francisco Society of Security Analysts.
About Forward Management, LLC
Investors today are seeking new tools and strategies to help them achieve their goals and manage risk. Forward is an asset management firm that is helping to meet and anticipate those needs with an extensive set of diverse, ever-evolving solutions. Providing broad access to innovative strategies once available only to the largest and most sophisticated investors, we are helping to lead the industry in a new direction. As of December 31, 2011, Forward manages $5.1 billion in mutual funds, separate account strategies and limited partnerships. More information on Forward Management and the Forward Funds can be found at www.forwardmgmt.com.
Please consider the objectives, risks, charges and expenses carefully before investing in the fund. A prospectus with this and other information may be obtained by calling (888) 312-4100 or by visiting www.forwardfunds.com. Please read carefully before making a final investment decision.
The Forward Endurance Long/Short Fund seeks to provide long-term growth of capital.
Enterprise value is a measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is calculated as market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents.
Alternative strategies typically are subject to increased risk and loss of principal. Consequently, investments such as mutual funds which focus on alternative strategies are not suitable for all investors.
There are risks involved with investing, including loss of principal. Past performance does not guarantee future results, share prices will fluctuate, and you may have a gain or loss when you redeem shares.
Foreign securities, especially emerging or frontier markets, will involve additional risks including exchange rate fluctuations, social and political instability, less liquidity, greater volatility, and less regulation. Investing in smaller companies generally will present greater investment risks, including greater price volatility, greater sensitivity to changing economic conditions and less liquidity than the securities of larger, more mature companies.
Alan Reid is a registered representative of ALPS Distributors, Inc. Forward Funds are distributed by ALPS Distributors, Inc. ALPS Distributors, Inc., is not affiliated with Forward Management or Kanter and Company.
Forward Funds are distributed by ALPS Distributors, Inc. Separately Managed Accounts and related investment advisory services are provided by Forward Management, a federally regulated Investment Advisor.
Not FDIC Insured | No Bank Guarantee | May Lose Value
Contact: Victoria Odinotska
Kanter & Company
SOURCE Forward Management, LLC