The fund investing in asset classes with low correlations to traditional stocks and bonds will seek long-term capital appreciation for the investors, claims the US firm.
Investing in securities, derivatives and other financial instrument, the fund’s primary long and short investment target will be futures and forward contracts.
Contrary to traditionally lower volatility investments funds, the fund uses high volatility to diversify away from equity-centric exposure and maximize returns, claims the company.
Salient chief investment officer Lee Partridge said, "This is the latest step in our strategy to bring cost-effective and rules-based alternative investment solutions to a wide variety of investors."
The fund tracks alternative betas for providing positive returns and diversification over the long term, and non-traditional market exposures based on chronic investor biases which can be used to generate potential return streams.
Leveraging a quantitative systematic investment process, the fund sets overall allocation based on how each portfolio sleeve interacts with the other sleeves, according to the asset management company.
Salient Partners, an $18bn investment management firm, identifies and develops better strategies to assist eradicate unrewarded risk, decrease investing costs and concentrate on the fundamental drivers of returns to deliver the full potential of all markets to investors.
