The fund aims to complement a traditional equity and bond portfolio, by offering low correlation to markets, diversification across asset classes, reduced portfolio risk in down markets and the potential for strong returns
The Taylor Xplor Fund invests both long and short in a variety of asset classes, including commodities, currencies, equity indices and global interest rates.
The fund was created to meet the changing allocation needs of advisers and their clients resulting from the 2008 financial crisis, which has led to artificially low interest rates and global economic instability, said Kevin F. McDonald, chief executive of Taylor Investment Advisors, adviser to the Taylor Xplor Fund.
“Today’s investment portfolios demand investments that are uncorrelated to market, business and economic cycles, and that can perform in down markets,” said Barry F. Cronin, chief investment officer of Taylor Investment Advisors. “The Taylor Xplor Fund seeks to meet these requirements and to offer investors an ‘all-terrain vehicle’ for navigating the hazardous roads ahead.”
The Taylor Xplor Fund was created by a coalition of three investment firms. Taylor Investment Advisors is fund adviser. BlackRock is the fixed-income sub-advisor and will oversee management of the strategy’s cash portion. Xplor Capital is the trading manager.