Envestnet | PMC Offers Long/Short Equity Strategies via SMAs

Envestnet | PMC, the Portfolio Management Consultants group of Envestnet, Inc., now provides the advisors it serves with access to long/short equity strategies available on the Envestnet platform through separately managed accounts (SMAs).

"With market valuations reaching all-time highs, the timing couldn't be better for bringing institutional-quality, thoroughly vetted hedge fund strategies to financial advisors—at lower minimums and within products that are ideally designed for their clients," said Bill Crager, President of Envestnet.

"Access to boutique managers with strong alpha-generating characteristics enables the Envestnet | PMC team to craft portfolios that have greater potential to deliver alpha-driven, risk-managed returns. This capability to optimize the active-management component of a well-diversified portfolio reinforces Envestnet | PMC's position as a leader in active and passive portfolio construction."

PMC seeks to offer access to multiple alpha-generating long/short equity strategies spanning market capitalizations, geographic regions, market sectors, and investment styles through SMAs, and is actively looking to build out its lineup.

Investors can potentially enhance portfolio diversification and mitigate exposure to volatility by allocating to multiple strategies.

PMC currently offers three long/short equity strategies as SMAs. These SMAs are distinguished by:

• Transparency: All investment strategies are held in brokerage accounts registered under the name of the investor, and all securities are directly owned and transparent to the investor. This transparency allows advisors to perform extensive analytics on a strategy at any time.
• Liquidity: Envestnet | PMC offers largely liquid strategies, and investors are free to increase or reduce the capital allocated to their managed accounts at any time.
• Lower Minimums: Most of the strategies require a minimum investment of $250,000, which is much lower than the minimums set by the majority of traditional hedge funds.  

The single- and multi-manager long/short equity strategies currently on the Envestnet platform include:

"Long/short equity strategies have historically outperformed equity markets since 1990, while reducing downside risk, and we are proud to be able to offer these hedged approaches through the same type of SMA platform that large institutional investors have been able to take advantage of in recent years—but with lower minimums and greater control, liquidity, and transparency for individual investors," said Brandon Thomas, CIO of Envestnet | PMC.

"By providing access to sophisticated strategies that seek to mitigate broader equity volatility across portfolios through SMAs on our platform, we can help advisors demonstrate crucial value for their clients."