Neuberger Berman Adds Long/Short Credit To Its Liquid Alts Lineup
By DailyAlts Staff A quarter-century ago, standard savings accounts paid enough interest to encourage people to keep their money in the bank. Times have obviously changed, and nothing could drive this point home harder than the fact some European countries saw benchmark interest rates fall below zero – into negative territory – earlier this year. In such a low-rate environment, traditional long-only bond investing isn’t much more attractive than holding cash in a low-yield savings account, especially since cash is safer than bonds – or at least it should be. Clearly, income-oriented investors need new strategies for generating current income and preserving capital, and that’s precisely what the Neuberger Berman Long/Short Credit Fund (MUTF: NLNAX ) aims to provide. Investment Approach The Neuberger Berman Long/Short Credit Fund, which was launched on June 29, pursues a fundamentally driven credit strategy involving both long and short positions. Its objective is to generate current income while managing volatility and preserving capital. Investments for the fund are selected using a multi-disciplinary approach with bottom-up company analysis, while taking the macroeconomic environment into consideration, as well. The fund’s overall strategy can be broken down into three sub-strategies: Core credit , which focuses on taking long positions in short-duration credit instruments; Alpha-seeking long/short , which involves taking directional positions in securities based on relative value and capital-structure arbitrage; and Opportunistic , which involves active and frequent trading in securities selected by the fund’s portfolio managers as attractive trading opportunities. Management The fund is managed by Rick Dowdle and Norman Milner, both of whom are Managing Directors of Neuberger Berman Management and Neuberger Berman Fixed Income, the fund’s advisor and sub-advisor. Mr. Dowdle began his career at Solomon Brothers and has 21 years of experience in the industry. Metals and mining companies, industrials, financials, and paper and forest products are his specialties. Mr. Milner is also a 21-year industry veteran. He began his career in South Africa, and his principal expertise is in emerging markets and sovereign credits. Share Information Shares of the Neuberger Berman Long/Short Credit Fund are available in A (NLNAX), C (MUTF: NLNCX ), and institutional (MUTF: NLNIX ) classes, with respective net-expense ratios of 1.57%, 2.32%, and 1.20%. Class A and C shares have an investment management fee of 1.07% a $1,000 minimum initial investment, while institutional-class shares have an investment management fee of 0.95% and a $1 million initial minimum. For more information, download a pdf copy of the fund’s prospectus .