“There are several ways to generate Alpha,” stated Mr. Torkelson. “At Matisse Funds we buy closed-end funds at significant discounts to their net asset values and then sells them once the discount narrows, as they return to favor."
Philadlephia, PA (PRWEB) May 13, 2014
At the recent Ivy Family Office Network Trends Forum, organized in Philadelphia by the Ivy Family Office Network, Bryn Torkelson, Founder, President, and Chief Investment Officer of Matisse Funds, led a panel discussion titled “Emerging Managers and Alpha Generation.”
During the discussion, Mr. Torkelson addressed the importance of investing in Closed-End Funds (CEFs). He particularly underscored how currently the CEF market is characterized by historically wide levels of discounts. He explained that this presents investment managers with very attractive investment opportunities, pointing out that selective CEFs investing in Master Limited Partnerships/Energy, Real Estate Investment Trusts (REITs) and Utilities offer compelling valuations at their current prices.
“There are several strategies to generate Alpha,” stated Mr. Torkelson. “The one we particularly favor at Matisse Funds is to buy Closed-End Funds at significant discounts to their net asset values and then sells them once the discount narrows, as they return to favor. This is a proven, successful strategy.”
Mr. Torkelson explained that because of its limited size—only $260 billion—the CEFs market is not as popular and well known as that of traditional mutual funds. Consequently, it remains a small and misunderstood market that does not attract much institutional attention.
“Our investment approach and quantitative screening allows us to capitalize on alpha sources not available in traditional investment vehicles, such as ETFs or open-end mutual funds,” added Torkelson. “The success of our strategy hinges on our ability to continually substitute in our portfolio securities with the best attributes with those securities who are less discounted.”
The panel led by Mr. Torkelson, included Michael Staton of Learn Capital, Steven Simmons of Sideris Capital Partners, Barry Gladstein of Cross Ledge Investments & Bill Haddad of Reed Smith.
Mr. Torkelson founded Deschutes Portfolio Strategies, the adviser to Matisse Funds in 1997. In 2002, he launched the Matisse Absolute Rate of Return Fund. Prior to that, he was senior vice president, managing partner, and perennial Chairman's Club member at Dain Bosworth, Inc. (a former NYSE company). He started his investment career at Smith Barney Harris Upham in Seattle.
About Matisse Funds
Based in Lake Oswego, OR, Matisse Discounted Closed-End Fund Strategy is designed to take advantage of market inefficiencies in the Closed-end Fund market, and to provide institutional investors with long-term outperformance coupled with less risk and lower correlation to the overall stock market. For more information, visit http://www.matissefunds.com or call (855) 210-3001
About The Ivy Family Office Network Forum
The Ivy Family Office Network Forum, IvyFON, provides an ongoing dialogue for family offices to support high-value education and information on trends for family office investing, structure and operational excellence. Attendees gain practical strategies and solutions to achieve both short and long-term objectives. The program features off-the-record, peer-to-peer discussions in a non-commercial setting, in-depth and highly interactive sessions.
IvyFON, is a leading peer to peer global family office network with several hundred family offices attending events around The Americas every year. Some of the more than 2,000 past speakers include most of the top 10 largest asset allocating consultancies, pre-eminent alternative investment funds, leading institutional investors, best-in-class asset management professionals, family office subject matter experts and world-class family offices.
Forum sessions are multi-format and cross-disciplinary covering a range of family office centric topics.
IvyFON originates from one of the United States’ oldest and largest alternative investment networks, the IvyPlus network. IvyPlus originated as a peer to peer private equity, real estate and hedge fund network consisting of Ivy League and comparable school alumni as well as meritorious participants in the program. The group includes New York City and Los Angeles deal networks across multiple disciplines including private equity, health care and real estate. More than 15,000 investment, family office and institutional investment professionals have attended forums globally.
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