Risk management: Mutual funds aims to protect investors from downside
By Amy Nolan, The Knoxville News-Sentinel, Tenn. | |
McClatchy-Tribune Information Services |
"In 15 months, worst-case scenario, we will be at
West describes the mutual fund family -- which he expects to keep expanding -- as bringing complicated investment strategies that he and his partners have used to manage their own wealth, as well as that of family and friends, "to the masses."
"We protect investors from the downside," he says of the funds, which seek single-digit returns. "Our products solve problems, and let people sleep at night."
Combined, two of the funds -- the
With trading agreements on 21 platforms, West is assembling a management and marketing team to pitch the funds to advisers and is preparing to launch more funds managed by "best- -in-class advisers."
To fund that growth,
West declined to talk about the private offerings, citing fear of violating
Managing wealth
West returned to
West set up Northshore Management in
Joining him was
Hashbarger, CEO of
"In 2008, we had a lot of friends who were coming to us and were having terrible results and didn't really know what to do," Hashbarger says. "They were literally asking, 'Will you take a look at my portfolio and tell me what you think.'
"In 2009, BPV formed, and we had individual clients for about 2 1/2 years," he says. "Then, we realized we had something pretty special and took our strategies and launched them in a mutual fund format."
The document-shredding business was sold to workplace services giant
The mutual funds employ sophisticated strategies that Hashbarger says are essentially what Northshore applied to individual investors' accounts.
The fund seeks an annualized return of 3 to 5 percent.
The targeted return is between 5 and 7 percent, he says.
"Neither of our funds fit very well in a traditional
The third fund,
Building infrastructure
BPV's management team has worked the past two years getting approval for listing on multiple trading platforms. West says many waived their requirements that a fund had to have been in operation for three years.
Adds Hashbarger, "BPV now has essentially national distribution relationships with all the major players."
The firm is in the process of vetting other asset managers for new funds, its leaders say.
"There is a much bigger vision for BPV than just the three funds that are currently here," Hashbarger says. "There will be additional strategies that will be launched and managed by different subadvisors, and it's likely that you will see new funds that are managed by my firm."
West's partners include former University of
BPV doubled its employees to 30 in 2013, and added two in 2014. But not all additions jelled. A
"We defend our culture and our purpose, and everyone on the team has to fit," Floyd said when asked to comment on the executive's departure.
While details on new funds are still in development, West says they will include much the same philosophy as the others: a focus on targeted returns and risk management.
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