Alliance Capital Management LP of New York is tapping two of its hot fund managers to run a new fund. Alliance plans to offer its second value fund, the Alliance Disciplined Value Fund, according to a registration statement the fund filed with the SEC Nov. 3. The fund will be a so-called "deep value" fund, investing in the securities of companies that portfolio managers Paul Rissman and Frank Caruso believe are undervalued. Rissman and Caruso manage the Alliance Growth & Income Fund, which has four stars from Morningstar, the Chicago fund-rating firm.

Alliance, known primarily for its growth funds, is adding Disciplined Value as part of an effort to diversify its product line, according to a company spokesperson. Growth & Income is Alliance's only value fund now, the spokesperson said. Growth & Income invests in the securities of companies which are undervalued in comparison to their peers, in addition to buying the stocks of companies that pay dividends. Alliance has $317 billion in assets under management and offers 46 U.S. open-end, long-term funds.

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