LOS ANGELES--(Aristotle Capital Management, LLC (“Aristotle”), a registered investment adviser under the Investment Advisers Act of 1940 on behalf of institutional and high net-worth clients, today announced the introduction of the Aristotle/Saul Opportunity Fund, its first open-ended mutual fund. The objective of the Fund is to seek to maximize long term capital appreciation and income from investments in stocks and other securities, including foreign securities, regardless of market direction. At its “core,” the Fund strives to be a global “unconstrained” strategy. The institutional, no-load share class will trade under the symbol ARSOX.)--
“We are pleased to offer the Aristotle/Saul Opportunity Fund to the open-ended mutual fund marketplace. This 'strategy' previously was only available in the private partnership arena. We feel the timing is excellent for such a product given the rapidly and ever-changing economic conditions across the globe”
The Fund employs its actively managed, “go-anywhere” strategy with a fundamental, bottom-up approach to security selection. It focuses on high quality, structurally good businesses with sustainable competitive advantages that are believed to be trading at significant discounts to Aristotle’s estimate of fair value. The Fund utilizes a strategic approach to enhancing Alpha and managing risk and is believed to also be positioned with sufficient flexibility to take advantage of perceived market dislocations as they may arise, including sector/stock overvaluation, fixed income/equity pricing differentials, and possibly specific security/indices and/or exchange traded funds disparities.
The Fund is managed by industry veteran Howard Gleicher, CEO and Chief Investment Officer of Aristotle. Commencing in July 2006, Mr. Gleicher served as the sole manager of a private fund with substantially the same investment objective and strategy as the Fund, in his capacity as Chief Executive Officer and Chief Investment Officer at Metropolitan West Capital Management, LLC (“MetWest Capital”). Mr. Gleicher was the strategist for MetWest Capital’s Large Cap Intrinsic Value, International Value, and Global Intrinsic Equity strategies. He also served as a senior analyst with MetWest Capital’s investment team. Mr. Gleicher departed MetWest Capital in October 2010 and continued to manage the private fund at Aristotle, commencing in November 2010. Prior to co-founding MetWest Capital, Mr. Gleicher served as principal, portfolio manager and Investment Policy Committee member with Palley-Needelman Asset Management, Inc. and as vice president and equity portfolio manager with Pacific Investment Management Company. Mr. Gleicher holds Bachelor of Science and Master of Science degrees in Electrical Engineering from Stanford University, and an MBA from Harvard Business School and is a Chartered Financial Analyst.
“The origin of the Aristotle/Saul Opportunity Fund investment process stems from a gift many years ago from my grandfather, Saul Schechter, a successful real estate investor and entrepreneur, to his grandchildren. His intent was to see that the gift was managed in a manner that would provide for the recipients and their families for many generations to come, with no limitations as to how that portfolio was to be invested. We hope to maintain that spirit and purpose of creating a Fund that stands the test of time,” stated Howard Gleicher.
“We are pleased to offer the Aristotle/Saul Opportunity Fund to the open-ended mutual fund marketplace. This 'strategy' previously was only available in the private partnership arena. We feel the timing is excellent for such a product given the rapidly and ever-changing economic conditions across the globe,” commented Steve Borowski, President of Aristotle.
About Aristotle Capital Management, LLC
Aristotle Capital Management, LLC ("Aristotle") is a registered investment adviser under the Investment Advisers Act of 1940. The firm employs a fundamental, bottom-up research process to drive investments, and offers a selection of U.S. and International equity investment solutions to institutional and high net-worth clients. Visit www.aristotlecap.com.
An investment in the Fund is subject to risks and you could lose money on your investment in the Fund. The principal risks of investing in the Fund include, but are not limited to, investing in foreign securities, emerging markets, short sales, derivatives, below investment grade bonds, convertible securities, and ETFs.
Foreign securities have additional risks including currency rate changes, political and economic instability, lack of comprehensive company information, less market liquidity, less efficient trading markets, and differing auditing controls and legal standards. Investments in emerging markets involve even greater risks.
The use of short sales and ETFs may cause the fund to have higher expenses than those of other equity funds. Short sales are speculative transactions and involve special risks, including a greater reliance on the investment team's ability to accurately anticipate the future value of a security. The Fund's losses are potentially unlimited in a short sale transaction. The Fund's use of short sales and futures contracts leverages the Fund's portfolio. The Fund's use of leverage can make the Fund more volatile and magnify the effect of any losses. There is no assurance that a leveraging strategy will be successful.
The Fund may invest in derivatives which can be highly volatile, illiquid, difficult to value, and changes in the value of a derivative may not correlate with the underlying securities or other securities held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives' original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gain or result in losses by offsetting positive returns in other securities the Fund owns.
Alpha is a measure of the portfolio’s risk adjusted performance. When compared to the portfolio’s beta, a positive alpha indicates better-than-expected portfolio performance and a negative alpha worse-than-expected portfolio performance.
Please consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus or summary prospectus that contains this and other information about the Fund is available by calling 1.866.661.6691 or visit aristotlefunds.com and should be read carefully prior to investing.
The Aristotle/Saul Opportunity Fund is distributed by Grand Distribution Services, LLC, located at 803 West Michigan Street, Milwaukee, WI 53233.