Seeking to accelerate the growth of its business, James Alpha Advisors announced it has entered into a strategic partnership with Easterly, which has acquired a minority equity interest in the boutique asset management firm known for its flagship James Alpha Global Real Estate Investments Fund (JARIX). The boutique also offers 11 other funds, managed by a combination of in-house professional teams and subadvisors.
“Easterly is providing growth capital and operational expertise that will enable us to drive growth, improve operational efficiencies, develop new markets and enhance our client experience,” said Kevin R. Greene, Managing Partner of James Alpha Holdings, the holding company parent of James Alpha Advisors.
“The investment by Easterly will enable James Alpha Advisors to generate greater scale, broaden our product line and expand distribution, all of which are critical to accelerating the firm’s growth,” said Greene. “We are acquiring more than just an equity investment: We are gaining substantial new capabilities that will enhance our long-term competitiveness.”
As part of the agreement, Easterly’s Darrell Crate will become CEO of James Alpha Advisors and partner with James S. Vitalie, who steps down as CEO but remains President, reporting to Crate.
James Alpha Advisors will also create a new Board of Directors comprised of major shareholder Denis J. Nayden, Crate, and Greene, who will serve as Chairman of the Board.
“We are in an increasingly complex and competitive industry landscape. Darrell Crate has a proven track record in building scale and improving the performance of asset management firms, beginning when he joined the leadership team at Affiliated Managers Group more than two decades ago and continuing through his leadership of Easterly,” said Nayden. “He brings tremendous value to our firm.”
“Our suite of funds is designed to offer opportunities in all market environments, including today’s demanding climate,” said Vitalie. “Easterly’s contributions of resources and expertise will enable us to capitalize on the opportunities in these markets to better serve our clients.”
James Alpha Advisors: Great Opportunities
James Alpha Advisors has an offering of funds across the credit, equity, REIT and other specialty asset classes.
The offering is led by the James Alpha Global Real Estate Investments Fund (JARIX), which has Lipper Leader ratings of 5 for Total Return and Consistent Return (Lipper Leader rating as of 5/31/2020, Category: Global Real Estate out of 131 funds), has been ranked in the top decile of its category by Morningstar for one, five and 10 years and is rated four stars by Morningstar (Three and Five year Morningstar rating as of May 31, 2020. Based on total returns. Category: Global Real Estate. Number of funds in category: 1-year: 181, 3-year: 165, 5-year: 145, 10-year: 88).
The flagship fund is sub-advised by industry veteran Andrew J. Duffy of Ranger Global Real Estate Advisors, who has more than 20 years of REIT expertise. “I’m delighted with Easterly’s investment in James Alpha Advisors,” said Duffy. “The resources, operating expertise and investment savvy Easterly brings to the table will open up new opportunities for us. I’m especially pleased to work with Darrell Crate, who brings to bear his own experience in real estate through his chairmanship of Easterly Government Properties.”
Other funds among the firm’s alternative offering include the James Alpha Structure Credit Value Fund (JSVIX), which seeks yields competitive with the high-yield market but with lower volatility and risk. The fund is sub-advised by Jay Menozzi and Boris Peresechensky of Orange Investment Advisors. “Given the current economic outlook, the structured credit market offers unique potential, and the investment by Easterly will enable us to expand the platform and take advantage of opportunities in the market,” said Menozzi.
James Alpha Advisors offers other alternative products, including the James Alpha Managed Risk Domestic Equity Fund (JDIEX), rated four stars by Morningstar and sub-advised by EAB Investment Group (Three year Morningstar rating as of May 31, 2020. Based on total returns. Category: Options-based out of 117 funds). “The Managed Risk Domestic Equity Fund focuses on managing through periods of market volatility, which we believe makes it effective during periods such as this one,” said Edward Boll, EAB CEO and advisor to the fund. “Easterly’s investment will help us communicate this message.”
In addition, James Alpha Advisors offers the dynamic beta suite of products which seek to deliver the risk/return and diversification benefits of hedge funds in a daily liquid mutual fund format.
Added Crate, “We see James Alpha Advisors as having significant opportunities for growth, and will support the team with the resources and management and distribution expertise it needs to maximize those opportunities. I especially look forward to working with Jim Vitalie and the firm’s senior leadership, who have made James Alpha Advisors what it is today.”
About Easterly
Easterly is a private asset management holding company that has interests in boutique investment management firms. We acquire and develop ownership stakes in select asset management businesses seeking to accelerate growth, further institutionalize their products and platforms and generate enterprise value. For more information, please visit www.easterlypartners.com.
About James Alpha Advisors, LLC
James Alpha Advisors, LLC is a boutique asset management firm focused on providing innovative liquid alternative portfolio solutions for institutional and individual investors. We serve as the advisor and distribution arm for leading alternative fund managers in the James Alpha family of mutual funds and related portfolios. We believe that investing opportunistically in higher growth, high-quality liquid global real estate companies across the market capitalization spectrum with more favorable supply-demand metrics will, over the long term, generate attractive total return with below-average levels of risk. At the end of March, James Alpha Advisors had $1.2 billion of assets under management.
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Economic conditions remain highly uncertain and fund prices may remain low or decline further for an extended period.
High yield, below investment grade and unrated high risk debt securities (which also may be known as “junk bonds”) may present additional risks because these securities may be less liquid, and therefore more difficult to value accurately and sell at an advantageous price or time, present more credit risk than investment grade bonds and may be subject to greater risk of default. Interest rate risk refers to the risk that bond prices generally fall as interest rates rise; conversely, bond prices generally rise as interest rates fall.
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