Deutsche Bank and Natixis tap US fund managers for equities funds
Deutsche Bank and Natixis are using the expertise of US-based fund managers in the launches of two Ucits-compliant, American large- and mid-cap equities funds.
Natixis Global Associates is using the talent at its affiliate US boutique Harris Associates to launch a US Value fund, focused on the mid- and smaller sections of the US share markets.
Deutsche Bank is planning to put a long-biased fund from American hedge fund manager Omega Advisors, focused mainly on these parts of the US markets, on its Ucits platform next month.
Deutsche’s offering, the DB Platinum Omega fund, will be on the German bank’s Ucits platform in December, and follows other Ucits funds there run by US managers such as John Paulson, Millburn Ridgefield Corporation and Traxis Partners.
The manager of the latest fund is Leon Cooperman, chairman and CEO of $5.8bn management firm Omega. Before founding Omega in 1991, Cooperman was chairman and CEO of Goldman Sachs Asset Management.
Tarun Nagpal (pictured), Deutsche Bank’s European head of fund derivatives, said: “Partnering with hedge fund veteran Leon Cooperman represents another key milestone for Deutsche Bank and is testament to our investors that dbalternatives will strive to provide access to the world’s leading hedge fund managers in Ucits.”
Meanwhile, the Harris Associates Concentrated US Value fund will be distributed to UK investors by Natixis.
It will be run by lead manager Robert Levy, chief investment officer for US equities, and Mike Mangan and Edward Loeb, both portfolio managers at Harris Associates.
They will invest in shares of about 20 large- and mid-cap US companies. It will aim for long-term capital growth.
Harris Associates seeks companies trading at substantial discounts to its estimate of their intrinsic value, with good managers who use growing free-cash flow intelligently. Natixis today explained Harris uses “a private-equity approach to publicly traded stocks” in estimating their value.
Hervé Guinamant, president and CEO of Natixis Global Associates International, said: “We believe that the Harris Associates Concentrated US Value Fund offers excellent potential for strong long-term performance, thanks to the rigorous process for selecting US value stocks and the greater potential impact on returns from its concentrated structure.
“In these challenging economic times, the Harris approach allows investors to think past short-term market movements and build durable US equities exposure.”