Meeting investor demand for enhanced diversification and low-correlating return stream
MINNEAPOLIS, Aug. 22, 2024 (GLOBE NEWSWIRE) — LoCorr Funds, a leader in low-correlating alternative investments, today announced the launch of its Hedged Core Fund (LHEIX). The new Fund seeks to enhance diversification, providing a unique return stream and a more stable investing experience in today’s uncertain economic climate. By tapping into the expertise of top-tier institutional money managers with proven success in delivering low-correlating returns, the Fund provides the potential for an improved risk/return profile through strategic exposure to commodities and global macro programs.
“Advisor demand for ’40 Act structure mutual funds with the ability to provide diversification and deliver a differentiated return stream has increased with the uncertainty around inflation and the future direction of interest rates,” said Kevin Kinzie, CEO of LoCorr Funds. “As advisors build a strategic allocation to low-correlating strategies, we are excited to add the Hedged Core Fund to our lineup.”
New Fund Utilizes Proven Managers
Hedged Core Fund employs a multi-manager approach, combining systematic and discretionary strategies with the flexibility to take both long and short positions in futures contracts on more than 90 global markets, including equities, fixed income, currencies, and commodities. The Fund’s managers are a combination of the underlying managers of the Firm’s most popular funds—Macro Strategies Fund (LFMIX) and Long/Short Commodities Strategy Fund (LCSIX). These proven managers have extensive track records, some dating back decades, which have been tested through multiple market cycles. In addition, the managers have historically exhibited low correlation to each other.
Expertise in Blending Strategies
LoCorr has long advocated for combining low-correlating strategies that do not correlate to stocks and bonds or each other. These blended solutions, or sleeves, can improve a portfolio’s risk/return profile and deliver an independent sequence of returns. The firm has offered sleeves, which combine two or three mutual funds, for a decade. The Hedged Core Fund is the first mutual fund from LoCorr that blends strategies under a single ticker symbol and is systematically rebalanced among the institutional manager programs.
The Hedged Core Fund is available on Fidelity, First Clearing, Pershing, R W Baird, and Schwab platforms to name a few.
About LoCorr Funds
LoCorr Funds is a leading provider of low-correlating investment strategies, founded on the belief that non-traditional investment strategies with low correlation to stocks and bonds can reduce risk and help increase portfolio returns. LoCorr offers investment solutions that not only provide the potential for positive returns in rising or falling markets but also help to achieve diversification in investment portfolios. LoCorr Funds is headquartered in Excelsior, MN. For more information, please visit www.LoCorrFunds.com or call 1.888.628.2887.
For additional information, contact:
Jenny Brookfield, 952-767-6906
The Hedged Core Fund is a recently organized management investment company with a short operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions.
The Fund’s investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company, and it may be obtained by calling 1.855.LCFUNDS, or visiting www.LoCorrFunds.com. Read it carefully before investing.
Mutual fund investing involves risk. Principal loss is possible. The Fund invests in foreign investments and foreign currencies which involve greater volatility and political, economic and currency risks and differences in accounting methods. The Fund may make short sales of securities, which involves the risk that losses may exceed the original amount invested. Investing in commodities may subject the Fund to greater risks and volatility as commodity prices may be influenced by a variety of factors including unfavorable weather, environmental factors, and changes in government regulations. The Fund may invest in derivative securities such as futures and forwards, which derive their performance from the performance of an underlying asset, index, interest rate or currency exchange rate. Derivatives can be volatile and involve various types and degrees of risks, and, depending upon the characteristics of a particular derivative, suddenly can become illiquid. Derivative contracts ordinarily have leverage inherent in their terms which can magnify the Fund’s potential for gains or losses through increased long and short position exposure. The Fund may access derivatives via a swap agreement. A risk of a swap agreement is the risk that the counterparty to the agreement will default on its obligation to pay the Fund. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investments in Asset-Backed, Mortgage-Backed, and Collateralized Mortgage-Backed Securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments.
Diversification does not assure a profit nor protect against loss in a declining market. Correlation measures how much the returns of two investments move together over time. Past performance is not necessarily indicative of future results.
The LoCorr Funds are distributed by Quasar Distributors, LLC. © 2024 LoCorr Funds
