Thu, 06/02/2014 - 06:34
BPV Capital Management, has launched the BPV Low Volatility Fund, a low-fee hedged equity strategy that seeks to provide institutional investors and advisors with bond-like returns and reduced volatility compared to the S&P 500.
The BPV Low Volatility Fund will hold a broad-based equity portfolio, and the portfolio managers will employ a variety of options strategies to mitigate risk and generate potential returns.
"We are excited to welcome the Low Volatility Fund to our family of funds," says Mike West, senior partner and CEO of BPV. "After listening to our advisors describe their challenges, we determined our hedged equity strategy provided an alternative investment strategy to investments that were in fixed income or that are side-lined because of fear of volatility in the equities market."
"The long-running bull market in bonds is not necessarily over, but uncertainty is there and it's a real factor," says George Hashbarger, head of BPV sub-adviser Quintium Advisors. "Historically, the best way to handle such investment climates has been to create alternatives. Institutions and investors with assets on the side-lines may find BPVLX to be a refreshing change of pace, especially given the low fees."
Using a variety of option strategies, the fund seeks to establish downside protection while simultaneously creating income with the new fund. Collaring, the process of purchasing a put option while selling a covered call option, is one important option strategy used for the fund by helping establish a more highly focused risk/return profile.
"If interest rates continue to rise, the threat against bonds and fixed income investments may become higher than ever," says West. "The fund can also help investors reduce exposure to unhedged equity markets, especially for our clients whose assets are suffering from the effects of inflation."
BPV Capital and the BPV Family of Funds are planning additional product rollouts and a campaign to meet significant pain points for advisors and investors this year.
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