The TCW Group has partnered with Gargoyle Investment Advisor to offer its first alternative mutual fund, the TCW | Gargoyle Hedged Value Fund (TFHIX / TFHVX).
In conjunction with the offering of this Fund, TCW has formed TCW Alternative Funds, a new family of alternative mutual funds.
The TCW | Gargoyle Hedged Value Fund, which is advised by TCW and sub-advised by Gargoyle, seeks long-term capital appreciation with lower volatility than a stand-alone stock portfolio. The Fund aims to achieve this outcome through a combination of buying undervalued stocks and selling overpriced index call options. The Fund has a three-year track record1 as a mutual fund and carries a five-star rating from Morningstar within the Long/Short Equity category. Since inception, the TCW | Gargoyle Hedged Value Fund (I Share) has provided attractive risk-adjusted results, outperforming the S&P 500 index by 4.6 per cent on a net annualised basis with 8 per cent lower volatility.
“Alternative mutual funds are one of the fastest growing segments of the mutual fund marketplace. We believe that demand will continue to increase in the coming years as investors seek sources of uncorrelated returns in their investment portfolios,” says Jess Ravich (pictured), Group Managing Director and Head of Alternative Products at TCW. “TCW is committed to delivering industry-leading investment solutions to our clients, and we are very pleased to partner with Gargoyle given their expertise, track record, and consistent approach to portfolio management.”
The TCW | Gargoyle Hedged Value Fund is managed by Gargoyle co-founders and managing partners Joshua B. Parker and Alan L Salzbank. Both Messrs. Parker and Salzbank have extensive experience in equity and options investing. Earlier in their careers, both were members of and options market-makers on the American Stock Exchange. Parker holds an undergraduate degree from Yale University and a Juris Doctorate from New York University School of Law. Salzbank holds an undergraduate degree in economics from the Wharton School and an MBA from New York University.
“The Gargoyle team is very excited to be working with TCW, given the firm’s strong reputation in investment management, operational excellence and dedication to delivering high quality alternative products to investors,” says Parker. “Investors understand the importance of reducing volatility in their portfolios for their long-term investment strategy, and we believe the TCW | Gargoyle Hedged Value Fund, with its recognised track record, can serve as an enhancement to an equity allocation for a broad range of investors.”