9 Apr 2010
Armored Wolf, the west coast US macro fund operator, has been named an investment sub-advisor to a commodity strategy fund run by Eaton Vance, a major US mutual fund operator. The move is part of a trend for traditional mangers to engage hedge funds via sub-advisory deals to access the experience of absolute return mangers.
John B. Brynjolfsson, chief investment officer and a managing director of Armored Wolf, is co-managing the fund. He is a veteran PIMCO manager who helped launch and grow PIMCO’s real return platform while serving as a portfolio manager for several of its mutual funds, including a commodity strategy fund which became the largest in its class.
The Eaton Vance Commodity Strategy Fund is to seek total returns primarily through exposure to commodities-related investments backed by long and short positions in fixed income securities. The fund utilizes a strategy that seeks broad-based commodity exposure and incremental alpha sourced primarily from three active strategies.
It will initially seek to generate returns comparable to the benchmark Dow Jones-UBS Commodity Index Total Return with moderate volatility around the Index. Initially, the fund’s alpha versus the benchmark will come primarily from commodity-linked derivative instruments, global inflation-linked bonds and emerging markets bonds.
Eaton Vance, founded in 1924, is one of the oldest investment management firms in the US, and manages over $160 billion. Armored Wolf is an investment manager pursuing a global macro strategy emphasizing real assets.
John B. Brynjolfsson, chief investment officer and a managing director of Armored Wolf, is co-managing the fund. He is a veteran PIMCO manager who helped launch and grow PIMCO’s real return platform while serving as a portfolio manager for several of its mutual funds, including a commodity strategy fund which became the largest in its class.
The Eaton Vance Commodity Strategy Fund is to seek total returns primarily through exposure to commodities-related investments backed by long and short positions in fixed income securities. The fund utilizes a strategy that seeks broad-based commodity exposure and incremental alpha sourced primarily from three active strategies.
It will initially seek to generate returns comparable to the benchmark Dow Jones-UBS Commodity Index Total Return with moderate volatility around the Index. Initially, the fund’s alpha versus the benchmark will come primarily from commodity-linked derivative instruments, global inflation-linked bonds and emerging markets bonds.
“John and his team at Armored Wolf bring extensive expertise in managing commodities related investments to the management of the Eaton Vance Commodity Strategy Fund,” said Payson Swaffield, chief income investment officer at Eaton Vance. “John is regarded as one of the leading authorities on commodity-based and real return investing.”
“Rising inflation can negatively impact investors who have not positioned their portfolios appropriately,” Swaffield said. “Commodities are among the major asset classes that possess the ability to provide some inflation protection for investors,” said Brynjolfsson.
Eaton Vance, founded in 1924, is one of the oldest investment management firms in the US, and manages over $160 billion. Armored Wolf is an investment manager pursuing a global macro strategy emphasizing real assets.
