Wasatch Launches Long/Short Alpha Fund
Wasatch Global Investors has launched the Wasatch Long/Short Alpha Fund (WALSX/WGLSX) on October 1, 2021. This fund aims to achieve long-term capital growth by purchasing U.S. common stocks while taking short positions in underperforming companies. It maintains a net long exposure, allowing it to benefit from market upswings while providing some protection during downturns. The fund intends to focus on small- and mid-cap companies, using both fundamental analysis and proprietary quantitative tools to assess investments. Risks include significant losses from short selling and market volatility.
- Launch of Wasatch Long/Short Alpha Fund (WALSX/WGLSX) could attract investors.
- Utilization of quantitative models and fundamental analysis may enhance investment decisions.
- Focus on small- and mid-cap companies aligns with current market trends.
- Short selling poses risks of unlimited losses and high expenses.
- Non-diversified nature increases potential for significant losses.
- Reliance on quantitative models carries the risk of inaccuracies.
Under normal conditions, the Fund intends to maintain a net long exposure to the market (measured as the market value of the long positions minus the short positions). The goal is to allow the Fund to benefit from a rising market while still affording some protection from a falling market. The Fund will have the flexibility to invest in companies across all market capitalization levels but expects to invest a significant portion of the portfolio in small- and mid-sized companies.
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Investor – WALSX Institutional – WGLSX
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About
Risks
Equity investing involves risks, including potential loss of the principal amount invested.
Short selling incurs significant unique risks, including potentially unlimited downside risk, high short-sale related expenses, and unavailability of securities to sell short, among others, all of which could negatively impact the performance of the Fund. Additionally, the Fund may not be able to borrow the securities it intends to sell short
Because the Fund invests in both long and short equity positions, the Fund has overall exposure to changes in the value of securities, which far exceeds the value of the Fund’s assets. This may magnify gains and losses and increase the volatility of the Fund’s returns. Investment in the Fund will involve market risks associated with different types of investment decisions than those made for a typical “long only” fund. There is no guarantee that the use of long and short positions will succeed in limiting the Fund’s exposure to market movements, sector-swings or other risk factors.
Being non-diversified, the Fund can invest a larger portion of its assets in the stocks of a limited number of companies than a diversified fund. Non-diversification increases the risk of loss to the Fund if the values of these securities decline..
Portfolio holdings are subject to risk and may change at any time. Securities in the Fund are generally added to the portfolio as long or short positions based upon security rankings provided by multi-factor quantitative models and on fundamental analysis of securities. The reliance on quantitative models entails unique risks, including the risk that a model may be limited or incorrect, that the data on which a model relies may be incorrect or incomplete and the risk that the Advisor may not be successful in selecting companies for investment or determining the weighting of particular stocks in the Fund’s portfolio. The Advisor will generally sell a security if, among other things, the rankings provided by the quantitative models decline and/or research analysis reveals a deterioration of the company fundamentals.
The COVID-19 health pandemic has negatively affected and may continue to affect the economies of many nations, individual companies, and the global securities markets. This has impacted and may continue to impact the issuers of the securities held by the Fund.
The Wasatch Long/Short Alpha Fund’s investment objective is long-term growth of capital.
An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus, containing this and other information, visit wasatchglobal.com or call (800) 551-1700. Please read it carefully before investing.
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CONTACT INFORMATION:
p: (801) 533-0777 / eric@wasatchglobal.com
MEDIA CONTACT:
p: (414) 322-9311 / jody@lowecom.com
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FAQ
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