Wasatch Global Investors announced today the launch of the Wasatch Long/Short Alpha Fund (WALSX/WGLSX). The Fund will typically purchase U.S. common stocks (“long” equity positions) in what Wasatch believes are promising companies and sell short those stocks (“short” equity positions) in companies it expects to underperform.
Under normal conditions, the Fund intends to maintain a net long exposure to the market (measured as the market value of the long positions minus the short positions). The goal is to allow the Fund to benefit from a rising market while still affording some protection from a falling market. The Fund will have the flexibility to invest in companies across all market capitalization levels but expects to invest a significant portion of the portfolio in small- and mid-sized companies.
Mick Rasmussen, Lead Portfolio Manager of the Fund, said, “In developing the Wasatch Long/Short Alpha Fund, we have applied Wasatch’s classic fundamental, bottom-up investment analysis with increased support from our internally developed quantitative signals and tools. As a result, we believe we can capture stock-specific alpha with reduced market risk.”
| Fund Inception Date: October 1, 2021 |
|Fund Name||Share Classes||Portfolio Management|
|Wasatch Long/Short Alpha Fund||Investor – WALSX|
Institutional – WGLSX
|Mick Rasmussen, CFA, Lead Portfolio Manager|
About Wasatch Global Investors
Wasatch Global Investors is a 100% employee-owned investment manager founded in 1975 and headquartered in Salt Lake City, Utah. Named after the nearby Wasatch Mountain Range, the firm brings unparalleled experience to U.S. and international micro-, small- and mid-cap investing with a culture that emphasizes collaboration, excellence and intellectual curiosity. Wasatch had $39.8 billion in assets under management as of August 31, 2021. Wasatch Global Investors is registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940.
Equity investing involves risks, including potential loss of the principal amount invested.
Short selling incurs significant unique risks, including potentially unlimited downside risk, high short-sale related expenses, and unavailability of securities to sell short, among others, all of which could negatively impact the performance of the Fund. Additionally, the Fund may not be able to borrow the securities it intends to sell short
Because the Fund invests in both long and short equity positions, the Fund has overall exposure to changes in the value of securities, which far exceeds the value of the Fund’s assets. This may magnify gains and losses and increase the volatility of the Fund’s returns. Investment in the Fund will involve market risks associated with different types of investment decisions than those made for a typical “long only” fund. There is no guarantee that the use of long and short positions will succeed in limiting the Fund’s exposure to market movements, sector-swings or other risk factors.
Being non-diversified, the Fund can invest a larger portion of its assets in the stocks of a limited number of companies than a diversified fund. Non-diversification increases the risk of loss to the Fund if the values of these securities decline..
Portfolio holdings are subject to risk and may change at any time. Securities in the Fund are generally added to the portfolio as long or short positions based upon security rankings provided by multi-factor quantitative models and on fundamental analysis of securities. The reliance on quantitative models entails unique risks, including the risk that a model may be limited or incorrect, that the data on which a model relies may be incorrect or incomplete and the risk that the Advisor may not be successful in selecting companies for investment or determining the weighting of particular stocks in the Fund’s portfolio. The Advisor will generally sell a security if, among other things, the rankings provided by the quantitative models decline and/or research analysis reveals a deterioration of the company fundamentals.
The COVID-19 health pandemic has negatively affected and may continue to affect the economies of many nations, individual companies, and the global securities markets. This has impacted and may continue to impact the issuers of the securities held by the Fund.
The Wasatch Long/Short Alpha Fund’s investment objective is long-term growth of capital.
An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus, containing this and other information, visit wasatchglobal.com or call (800) 551-1700. Please read it carefully before investing.
Wasatch Funds are distributed by ALPS Distributors, Inc. (ADI). Eric Bergeson is a registered representative of ADI. ADI is not affiliated with Wasatch Global Investors.
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