CMG has shortened the list of subadvisors on its CMG Absolute Return Strategies Fund
, dropping Anchor Capital Management
, and Howard Capital Management
. The changes were disclosed in an SEC filing
and confirmed by CMG.
CMG CEO Steve Blumenthal
that Howard and AIFS were removed from the fund earlier this year, and that Anchor's position was just recently reduced. The three managers had collectively managed 13 percent of the fund, which according to Morningstar has around $60 million in AUM
Blumenthal elaborated on the reasons CMG removed each of the three subadvisors. AIFS used a Treasuries-trading strategy that Blumenthal said was "in a challenging position" in teh curent market. Howard was removed due to the management's style drift. And Anchor used a high-yield strategy that Blumenthal said "we didn't feel added value on top of what we were already doing" with its own high-yield strategy.
Blumenthal said that the fund has reallocated the fund's management to the four existing strategies, each of which manage 24 percent of the fund's assets. Traub
manages the currency trading portion, Scotia
the equities strategy, System Research
the Treasury long/short strategy, and CMG manages a high-yield bond portion in-house.
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