AlphaSimplex Group is seeing its first deposits from CMG Capital Management Group today with the launch of the third fund in the CMG family. The new fund will be advisor-distributed and target at retail investors seeking exposure to global equities.
King of Prussia-based CMG is opening its Global Equity Fund with alts-specialist AlphaSimplex Group acting as subadvisor. The fund comes in A shares and I shares and will has shelf space with Fidelity/NFS, Pershing, Schwab, TD Ameritrade and Trust Company of America, among other platforms.
While AlphaSimplex is subadvisor, its role will be to manage volatility in the fund. Meanwhile, London-based Absolute Return Partners will select stocks for the mutual fund.
CMG Capital Management Group CEO Steve Blumenthal explained that the fund will invest in 50 global companies with the highest investment potential with a risk management overlay.
"We believe this is a time of profound uncertainty when tactically managed mutual funds, with proper risk
management, can help smooth out turbulence and attempt to capture upside potential," he stated.
Each of the three CMG funds features an alternatives bent.
Company Press Release
CMG Capital Management Group, Inc. Launches CMG Global Equity Fund With AlphaSimplex Group, LLC as Sub Advisor, and
Research from Absolute Return Partners, LLPM
The Fund Seeks to Generate Long-Term Growth of Capital With
Less Volatility Than Global Equity Markets
KING OF PRUSSIA, Pa., June 3, 2013 (GLOBE NEWSWIRE) -- CMG Capital
Management Group, Inc. launched the CMG Global Equity Fund on May 15.
The Fund portfolio is comprised of 50 global stocks that we believe
demonstrate consistent earnings, financial strength and a track record
of stable management and has the potential to deliver consistent long
term results. The Fund includes a risk management overlay strategy that
attempts to identify periods of high risk in global equity markets and
hedge equity exposure though active volatility management.
The Fund stock selection is based on research from Absolute Return
Partners, LLP, a London-based investment management firm. The equity
investment process follows an eight-stage empirical method of
identifying and rating the relative economic quality of 35,000
companies across 150 countries. CMG has selected AlphaSimplex Group,
LLC as the sub-advisor responsible for the Fund's active volatility
management. AlphaSimplex is a leader in bringing improved risk
management to mutual fund investing. Dr. Andrew Lo and Dr. Alexander
Healy of AlphaSimplex Group will serve as portfolio managers.
"We will select 50 global companies that we believe present the highest
investment potential and manage that portfolio with a notable stock
selection and risk management team," said Steve Blumenthal, CEO of CMG
Capital Management Group, Inc. "We believe this is a time of profound
uncertainty when tactically managed mutual funds, with proper risk
management, can help smooth out turbulence and attempt to capture
upside potential. This Fund seeks to give retail investors a global
perspective to equity investing, with the expertise of AlphaSimplex
Group and Absolute Return Partners."
"For almost a decade now, the equity selection model has demonstrated
an ability to identify high quality companies from all over the world.
Some of the current portfolio constituents, such as Apple, are very
well known companies whereas others are largely unknown to the public.
We believe that one of the great advantages of the model approach is
its ability to identify lesser known companies that share the
'corporate DNA', as we define it, with Apple and other strong global
brands -- i.e. superior earnings strength, strong balance sheet and
cash flow and a proven ability to repeat the strong financial
performance year after year," said Niels Jensen, Managing Partner of
Absolute Return Partners, LLP.
There is no guarantee that any investment will achieve its objectives,
generate positive returns, or avoid losses.
The CMG Global Equity Fund will be available to investors in two share
classes: Class A shares (Ticker:GEFAX) and Class I shares
(Ticker:GEFIX). The Fund is available on all major brokerage platforms
including Fidelity/NFS, Pershing, Schwab, TD Ameritrade and Trust
Company of America.
About CMG Capital Management Group, Inc.
Founded in 1992 by Stephen Blumenthal, CMG Capital Management Group,
Inc. is a Registered Investment Advisor specializing in Tactical
Investment Solutions. For more than 20 years CMG Capital Management
Group, Inc. has been a trusted and valuable resource for advisors
seeking proven and effective investment strategies for their clients.
Mr. Blumenthal serves as the firms' CEO and chief investment strategist
and has over 28 years of tactical and alternative investment
experience. The CMG Family of Funds was created to deliver
institutional level tactical and alternative investment solutions
within a liquid 40 Act mutual fund structure.
CMG Capital Management Group, Inc. offers investment strategies through
managed accounts, mutual funds and variable annuities that are
constructed to, provide steadier performance in all market cycles. CMG
Capital Management Group, Inc. has $424 million AUM, as of 3/31/2013,
in tactically managed accounts and mutual funds for individuals and
advisors. CMG investment strategies are also available in Variable
Annuities through Jefferson National.
CMG Capital Management Group, Inc. Background:
CMG Capital Management Group, Inc. Research and Insight:
About AlphaSimplex Group, LLC
AlphaSimplex Group, LLC is an SEC registered investment manager
specializing in risk-controlled investment strategies. AlphaSimplex was
founded by MIT professor Dr. Andrew W. Lo, a recognized authority in
the areas of risk management and quantitative and behavioral finance.
The investment philosophy of AlphaSimplex is Dr. Lo's Adaptive Markets
Hypothesis that recognizes the most successful investment models are
those that can adapt to changing market conditions and dynamics. As of
March 31, 2013, AlphaSimplex's AUM was $2.4 billion in mutual funds and
About Absolute Return Partners, LLP
Absolute Return Partners is a London based investment management
company managing over $400 million. Founded by Niels Jensen in 2002,
the firm focuses on providing bespoke alternative investment solutions
to institutional investors. Mr. Jensen has nearly 30 years of
investment banking and investment management experience. He began his
career in Copenhagen in 1984 before moving to Sherson Lehman in London
in 1986. In 1989 he joined Goldman Sachs and became co-head of its U.S.
equity business in Europe in 1992, a post he held until 1996, when he
joined Oppenheimer to manage its European business. In 1999 he rejoined
Lehman Brothers, now in charge of European Wealth Management. In 2006
he was appointed Director of Trafalgar House Trustees Limited, advising
one of the UK's leading corporate pension funds on its investment
Definitions of Terms and Indices: Hedge: Making an investment to reduce
the risk of adverse price movements in an asset. Normally, a hedge
consists of taking an offsetting position in a related security, such
as a futures contract. Active Volatility Management: Is a dynamic
overlay strategy that attempts to enhance a portfolio's risk profile by
potentially identifying periods of high risk in equity markets and
hedging equity exposure by investing in liquid futures contracts.
During periods when downside risk is deemed by the advisor to exceed
upside potential, the overlay strategy will attempt to reduce exposure
in an effort to bring downside risk to its long-term level.
Please note: The disclosure statements must be presented in a type size
at least as large as, and of a style differing from, but at least as
prominent as, that used in the major portion of the advertisement (i.e.
Bold Typeface for the Prospectus Disclosure and Bold/Italics Typeface
for the Risk Disclosure).
Investors should carefully consider the investment objectives, risks,
charges and expenses of the CMG Family of Funds. This and other
important information about the Funds is contained in the prospectus,
which can be obtained at www.cmgarsfunds.net or by calling
1866-CMG-9456. The prospectus should be read carefully before
investing. The CMG Absolute Return Strategies Fund is distributed by
Northern Lights Distributors, LLC, member FINRA.
CMG Capital Management Group, Inc., Absolute Return Partners, LLP, and
AlphaSimplex Group, are not affiliated with Northern Lights
Mutual Funds involve risk including the possible loss of principal. The
Fund's use of derivatives and futures contracts involves hedging,
leverage risk and tracking risk. Leverage through futures can magnify
the Fund's gains or losses. The Fund may invest in short futures
positions which could prevent the Fund from participating in market
gains. Derivative instruments may be used to hedge against losses,
however these positions can potentially offset gains. The Fund may be
required to segregates assets or enter into offsetting positions in
connections with investments in derivatives but these may not limit
exposure to loss.
The Fund's investment in foreign securities may be affected by changes
in exchange control regulations, application of foreign tax laws,
changes in governmental administration, economic, or monetary policy,
currency fluctuations relative to the U.S. dollar and changed
circumstances between nations. In addition to these risks, countries
with emerging markets may have relatively unstable governments, social
and legal systems that do not protect shareholders, economies based on
only a few industries, and securities markets that trade a small number
The Fund may invest more than 5% of its assets in the securities of one
or more issuers and the resulting performance may be more sensitive to
any single economic, business, political or regulatory occurrence than
that of a diversified investment company. Additionally, smaller
companies may trade less frequently and in smaller volumes, experience
higher failure rates and disproportionate price fluctuations.