The 361 Absolute Alpha Fund has lowered its management fee from 165 basis points to 125 bps, effective Oct. 1, Money Management Executive has learned.

In addition, the fund has also dropped all five of its subadvisors including: SouthernSun Asset Management, Newsouth Capital Management, Brc Investment Management, Tributary Capital Management and Elessar Investment Management, according to data from Morningstar.

Tom Florence, chief executive officer of 361 Capital, told MME that the firm is now managing the fund in-house with the help of its partner Lighthouse Partners, a fund of hedge funds, which took a minority stake in 361 in March. “We think we can provide investors with better returns and product,” he said.

The $22 million, which launched in March 2010, is down 1.54% year to date through Sept. 24.

In addition, Florence said that the firm’s 361 Long/Short Equity Fund, which attempts to replicate the returns of long/short hedge fund strategies, is no longer leveraging “multiple sources to identify strategies and individual securities that are demonstrating a persistency in performance, both long and short,” according to its mandate. Instead, Florence said the fund is tapping Lighthouse’s resources and data to build a long/short strategy.

He also mentioned that the 361 will introduce a new alternative fund in early 2013 but declined to further comment on its initiative.

 

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