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Last updated on April 16, 2014 at 21:21 EDT

Newfound Research Announces Partnership with Virtus Investment Partners and Creation of “Newfound Investments”

October 4, 2012

BOSTON and HARTFORD, Conn., Oct. 4, 2012 /PRNewswire/ — Newfound Research, an independent financial technology and investment product firm that collaborates with clients to create accessible solutions rooted in quantitative integrity, today announced a partnership with Virtus Investment Partners, Inc. (NASDAQ: VRTS) to establish Newfound Investments. Newfound Investments is a new investment manager that will expand Virtus’ offerings of innovative investment solutions by adding disciplined, rules-based strategies to manage a variety of asset classes.

Newfound Research and Virtus established Newfound Investments as a new firm dedicated to offering innovative strategies that financial advisors can use to assist clients in meeting long-term financial goals. Newfound Research, which has a minority interest in the new firm, is well-known for its absolute U.S. sector exposure recommendations used by investment management companies and advisors. Virtus uses a multi-style, multiple-manager approach to offer clients access to a broad array of investment products, including the Virtus Mutual Funds.

Using Newfound Research’s proprietary tactical models, the first strategies managed by Newfound Investments will be three open-ended mutual funds called the Virtus Disciplined funds. Virtus has filed registrations with the SEC for the Virtus Disciplined Equity Style Fund, Virtus Disciplined Select Country Fund and Virtus Disciplined Select Bond Fund. Corey Hoffstein, co-founder and chief investment officer of Newfound Research, will serve as portfolio manager for the new funds.

“The foundational backbone of Newfound Research is quantitative integrity, which drives a more consistent fit between investment behavior and investor expectations,” said Corey Hoffstein. “Through collaborations with partners such as Virtus, we’re thrilled to expand our offerings in a new era of behavior-based investing.”

“With today’s changing market conditions, portfolios need to be nimble in their execution, and we believe financial advisors will welcome the opportunity to access the ‘Virtus Disciplined’ funds that use our innovative methodologies that require both quantitative depth and qualitative insight,” said Tom Rosedale, co-founder and chief executive officer, Newfound Research. “We are excited about this partnership because it combines Virtus’ product expertise and strong retail distribution capabilities with Newfound Research’s proprietary technology based on our intellectual capital.”

“We believe there is an ever-increasing demand among financial advisors to offer their clients’ portfolios that have a disciplined investment thesis and, more importantly, explainable and repeatable results,” said George R. Aylward, president and chief executive officer, Virtus. “The markets have evolved greatly over the past decade and there is a need to deliver investment solutions using rules-based tactical allocation methodologies, an area where Newfound Research continues to excel through its fresh thinking and commitment to innovation.”

About the Virtus Disciplined’ funds

Newfound Investments will employ a rules-based methodology that provides the optimal asset class exposure and holding period in three open-end mutual funds Virtus has filed for registration with the Securities and Exchange Commission. The three funds, expected to be available to investors later this year, are:

  • Virtus Disciplined Equity Style Fund. A common investor dilemma is when to shift investments between growth- and value-oriented stocks, and this fund will use the Newfound Relative Exposure Model to identify and capture relative outperformance trends between the two styles. The fund will tactically shift investments between three value-oriented and three growth-oriented exchange traded funds (ETFs) that track all market caps of the Russell indices.
  • Virtus Disciplined Select Bond Fund. Given changes in interest rates, inflation, economic conditions, and credit cycles, investors have difficulty discerning the distinct performance patterns of fixed income assets. This fund will utilize signals from the Newfound Relative Exposure Model to tactically shift between six ETFs in three fixed-income asset classes: Treasuries, Treasury Inflation-Protected Securities (TIPS), and investment grade and high-yield corporate bonds.
  • Virtus Disciplined Select Country Fund. Designed to allow international equity investors to capitalize on the significant performance disparities among non-U.S. equity markets, this fund will tactically allocate among ETFs that invest in 12 developed countries within the MSCI EAFE® index by using the Newfound Absolute Exposure Model, which generates positive or negative exposure recommendations for each country.

About Newfound Research LLC

Newfound is an independent financial technology and product innovation firm offering clients agile and accessible quantitative solutions. Since its inception in 2008, Newfound has collaborated with clients to create products rooted in quantitative integrity, requiring both quantitative depth and qualitative insight, that deliver a more consistent fit between portfolio behavior and investor expectations. Newfound’s utilities range from proprietary tactical timing models and proprietary risk measures to customized allocation techniques. For more information about Newfound, visit thinknewfound.com.

About Virtus Investment Partners

Virtus Investment Partners (NASDAQ: VRTS) is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. The company provides investment management products and services through its affiliated managers and select subadvisers, each with a distinct investment style, autonomous investment process and individual brand. Virtus Investment Partners offers access to a variety of investment styles across multiple disciplines to meet a wide array of investor needs. Its affiliated managers include Duff & Phelps Investment Management Co., Euclid Advisors LLC, Kayne Anderson Rudnick Investment Management, LLC, Newfleet Asset Management, LLC, Newfound Investments LLC , Rampart Investment Management Co., LLC, and Zweig Advisers LLC. Additional information can be found at www.virtus.com.

SOURCE Newfound Research


Source: PR Newswire