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Rating:CMG Creates a Simple Relationship to Find Alpha Not Rated 0.0 Email Routing List Email & Route  Print Print
Tuesday, June 4, 2013

CMG Creates a Simple Relationship to Find Alpha

News summary by MFWire's editors

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: http://www.cmgwealth.com/

CMG Capital Management Group, Inc. Research and Insight: http://www.cmgwealth.com/research-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 separate accounts.

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 strategy.

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 Distributors, LLC.

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 of issues

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.

Edited by: Sean Hanna, Editor in Chief

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