The Gotham Total Return Fund (the “Fund”) is an allocation strategy that invests in underlying Gotham mutual funds. The underlying fund allocations will be rebalanced according to our assessment of market conditions to manage both net exposure and beta. The Fund seeks long-term capital appreciation by investing in underlying Gotham mutual funds and in doing so aims to outperform the investment returns of top ranked university endowments over a full market cycle, which includes bull (rising) and bear (falling) markets.
Investment Strategy & Process
Gotham's proprietary equity research and risk controls are used to select long and short stock portfolios from a diverse market capitalization universe.
The Co-CIOs and their team of equity analysts employ Gotham’s proprietary analytical framework to evaluate stocks within the coverage universe on measures of absolute and relative value.
The long portfolios of the underlying funds are rebalanced daily to weight most heavily those stocks that are priced at the largest discount to Gotham's assessment of value. In general, as a company appears cheaper its weight in the portfolio increases.
Similarly, the short portfolios of the underlying funds are rebalanced daily to weight most heavily those short positions selling at the largest premium to Gotham's measures of value.
Risk for the underlying funds are managed by limiting concentration in anyone company, industry or sector. In addition, gross and net exposures are managed daily to remain within carefully defined ranges.
Allocations amongst underlying Gotham mutual funds are based on market conditions.