Sterling Capital Funds Launches New Long/Short Equity Fund
CHARLOTTE, N.C., Jan. 28, 2014 /PRNewswire/ — Sterling Capital Funds is pleased to announce the launch of its new Sterling Capital Long/Short Equity Fund, adding to its lineup of 21 mutual funds offering investors access to virtually every asset class and sector.
The fund focuses on long-term capital appreciation by allocating capital to external long/short equity managers. The fund is managed by L. Joshua Wein, CAIA, and James C. Willis, CFA, and will offer Class A, C and Institutional shares.
“We believe there are a variety of advantages offered to clients with this fund,” said Wein, co-portfolio manager based in Raleigh, N.C. “The liquid exposure to long/short equity, a multi-manager approach and the ability of Sterling Capital Management, as investment adviser, to monitor underlying portfolio exposures are among the advantages offered.”
The fund will target four investment management firms that will each sub-advise an allocated percentage of the fund with all assets custodied centrally. The fund’s structure allows capital to be allocated/re-allocated and rebalanced as needed.
While the fund focuses primarily on sector-specific managers, the team will also selectively allocate to managers with multi-sector approaches.
“This multi-manager approach draws upon the resources and manager search-and-selection expertise of Sterling Capital’s Advisory Solutions team,” said Willis, co-manager of the fund with Wein. “Through an extensive investment and operational due diligence process, we are seeking skilled managers with clearly differentiated approaches to equity research, risk management and portfolio construction.”
The initial sub-advisors selected for the fund are Cummings Bay Capital Management based in Dallas; Gator Capital Management in Tampa, Fla.; Lucas Capital Management in Red Bank, N.J.; and Sanborn Kilcollin Partners in Chicago.
Wein has investment experience since 1995. He is a graduate of Emory University with a bachelor’s degree in finance. He received his MBA from Vanderbilt University. He is a CAIA charterholder.
Willis has investment experience since 1996. He is a graduate of Rice University with bachelor’s degrees in economics and political science. He received his MBA from Georgetown University. He is a CFA charterholder.
Risk Considerations
Mutual fund investing involves risk including the possible loss of principal value. The fund may invest in derivatives, (futures, options, swaps). On occasion the fund may sell covered call and put options. Selling covered call options limits the fund’s opportunity to profit from an increase in the price of the underlying stock above the exercise price, but it continues to bear the risk of a decline in the stock. To the extent that the investment advisor misjudges current market conditions, the fund’s volatility may be amplified by its use of short sales and derivatives, and by its ability to select sub-advisers to allocate assets. Short sales by a fund theoretically involve unlimited loss potential since the market price of securities sold short may continuously increase.
Sterling Capital Management LLC is a registered investment advisor founded in 1970. Sterling is an independently operated subsidiary of BB&T Corporation, one of the nation’s largest financial services holding companies. Headquartered in Charlotte, N.C., with offices in Raleigh, N.C.; Atlanta, GA.; Washington, D.C.; Richmond, VA; Virginia Beach, VA and San Francisco, Calif., Sterling has more than $45 billion* in assets under management overseen by 98 investment and client services professionals. Sterling provides investment management services to a diversified group of clients including corporate, public, healthcare, private clients, endowment, foundation, insurance, sub-advisory, and managed investment pools in 40 states and 10 countries worldwide.
*As of December 31, 2013
Investment advisory services are available through Sterling Capital Management LLC, a separate subsidiary of BB&T Corporation. Sterling Capital Management LLC manages customized investment portfolios, provides asset allocation analysis and offers other investment-related services to affluent individuals and businesses. Securities and other investments held in investment management or investment advisory accounts at Sterling Capital Management LLC are not deposits or other obligations of BB&T Corporation, Branch Banking and Trust Company or any affiliate, are not guaranteed by Branch Banking and Trust Company or any other bank, are not insured by the FDIC or any other government agency, and are subject to investment risk, including possible loss of principal invested.
You should consider the investment objectives, risks, charges and expenses of Sterling Capital Funds carefully before investing. A prospectus with this and other information may be obtained at 800-228-1872 or www.SterlingCapitalFunds.com. The prospectus should be read carefully before investing.
The funds are distributed by Sterling Capital Distributors, LLC.
SOURCE Sterling Capital Management LLC