Palm Beach Gardens, FL
Long / Short Equity
Dakota began working with Otter Creek in December 2013, in conjunction with the launch of its mutual fund product. Dakota has raised over $400mm in assets for the fund and regards it as one of the truly distinct long/short alternative mutual funds in the market today.
You can visit Otter Creek’s website for more information or visit Otter Creek on Dakota Pages and view current and historical marketing and diligence documents.
Otter Creek has been managing a long/short strategy since 1991. Keith Long has been PM since inception and Tyler Walling has been co PM since 2012. The firm manages $125mm, of which 10% of capital is partners of the firm. The strategy's approach is to invest in roughly 30 - 35 long ideas and 30 - 35 short ideas, and the firm’s positions are primarily U.S. based. The strategy has the flexibility to invest across the capital structure, and throughout the history of the firm the net exposure has vacillated between -5% to 30% net long. The biggest annual drawdown since inception is -4%, and in times of distress in the markets the firm’s strategy has proven to generate positive returns.
The firm has six employees and is based in West Palm Beach, Florida.
OTTRX is a classic long/short alternative fund where the portfolio is driven by fundamental research which incorporates macro observations expressed through liquid securities such as common stock, fixed income, and options.
The strategy has exhibited extremely low correlation to stock and bond indexes throughout the funds history. The return stream has historically lowered allocators’ portfolio standard deviation when added as a diversifying strategy.
Given Otter Creek’s asset size, the portfolio team has the ability to invest in opportunities as they arise due to changes in market sentiment and liquidity. For example, in the first quarter of 2020, the portfolio team was able to identify multiple opportunities in senior fixed income securities and invested approximately 30% the portfolio in such opportunities.
The strategy is designed to be a diversifier in either equity or fixed income portfolios with a degree of convexity which is rare in a historically net long strategy.
Otter Creek has weathered an imperfect environment for their strategy which is defined as historically low bands of market volatility and interest rates, yet the strategy has generated positive returns.
If you would like to learn more about Otter Creek, call Tim Dolan at (314) 853-0801 or email Tim at email@example.com.
The Otter Creek Long/Short Opportunity Fund is distributed by Quasar Distributors, LLC. MUTUAL FUND INVESTING INVOLVES RISK. PRINCIPAL LOSS IS POSSIBLE. For Standardized Performance and Fund Holdings click here. Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance on the fund may be lower or higher than the performance quoted. Fund holdings and/or sector allocations are subject to change at any time and are not recommendations to buy or sell any security. The Fund's investment objectives, risks, charges and expenses must be considered carefully before investing. The statutory and summary prospectus contain this and other important information about the investment company, and may be obtained by calling 1-855-681-5261 or visiting www.ottercreekfunds.com. Read carefully before investing.