RS Investments has launched two new long/short alternative mutual funds: the RS Focused Opportunity Fund (RSFOX) and the RS Focused Growth Opportunity Fund (RSFGX).
Both funds will be available to retail and institutional investors.
“We’re focused on providing our clients with outcome-oriented solutions that are designed to limit downside risk across unpredictable markets,” says Matthew Scanlan, CEO of RS Investments. “These alternative strategies leverage our demonstrated Growth and Value alpha generation capabilities, across market caps, to construct long/short portfolios that seek to balance alpha and beta.”
The RS Focused Opportunity Fund looks to invest in companies that demonstrate attractive relative valuations, strong and stable growth, increasing return on invested capital and improving market sentiment. The RS Focused Growth Opportunity Fund invests in companies that produce sustainable earnings growth over a multi-year horizon and exhibit strong organic revenue growth, expanding margins and profitability, innovative products or services, defensible competitive advantages, growing market share and experienced management teams. Both the RS Focused Opportunity Fund and the RS Focused Growth Opportunity Fund will invest primarily in US equity securities selected by a fundamental stock selection process, and will leverage a quantitative analytical model to aid in the portfolio construction.
To spearhead this new strategy, RS Investments has appointed industry veteran Rick Brandt as Long/Short Portfolio Manager. Brandt will be responsible for overseeing the RS Focused Opportunity Fund and the RS Focused Growth Opportunity Fund. In his new role, Brandt will also work closely with the RS Growth and Value investment teams, as well as the firm’s Investment Strategy Group, to develop additional strategies.
Brandt, portfolio manager, added: “The path of returns is just as important as the returns themselves. Our Focused Opportunity funds seek to improve the client experience through optimised portfolio construction, a focus on demonstrated capabilities, and a better balance of risks.”
Brandt joins RS from Cerebellum Capital, where he was a long/short multi-strategy portfolio manager. He has more than 10 years of long/short experience in investment management and has managed portfolios at Resultant Capital Partners and Symphony Asset Management. Brandt earned his MS in Electrical Engineering and an MBA from Stanford University, as well as a BSE in Electrical Engineering from Princeton University.