Passport Capital Removed as Sub-Advisor to the Litman Gregory Masters Alternative Strategies Fund

WALNUT CREEK, Calif.—Litman Gregory Fund Advisors, LLC, an affiliate of wealth management firm Litman Gregory Asset Management, announced today that effective with the completion of the transition of assets to the remaining sub-advisors, but no later than December 31, 2017, Passport Capital, LLC will be removed as a sub-advisor and John Burbank will be removed as the portfolio manager to the Litman Gregory Masters Alternative Strategies Fund. This decision results from Passport’s intention to close their flagship hedge fund strategy to focus on more specialized strategies. Although the strategy Passport ran for the Alternative Strategies Fund had positive returns for the year, Passport’s decision to close its core fund to focus on a much narrower opportunity set reduces their ability to manage a dedicated, diversified, liquid long-short equity portfolio as part of our fund. This led to Litman Gregory’s decision to remove them. Litman Gregory will be re-allocating the capital from Passport to the remaining five subadvisors: DCI, DoubleLine, FPA, Loomis Sayles, and Water Island.

There are no immediate plans to replace Passport in the lineup. Litman Gregory remains highly confident in the remaining sub-advisors on the fund.

The updated target allocations are as follows:


PORTFOLIO MANAGER(S)/
SUB-ADVISOR
CURRENT TARGET ALLOCATION AND
TARGET ASSET ALLOCATION RANGE
STRATEGY

Stephen Kealhofer
Tim Kasta
Richard Donick
Paul Harrison
Bin Zeng
Adam Dwinells

DCI, LLC

19%
9-29%

Long-Short Credit

Jeffrey Gundlach
Jeffrey Sherman, CFA

DoubleLine Capital LP

25%
15%-35%
Opportunistic Income

Steven Romick, CFA
Brian Selmo, CFA
Mark Landecker, CFA

First Pacific Advisors, LLC

18%
8%-28%
Contrarian Opportunity

Matthew Eagan, CFA
Kevin Kearns
Todd Vandam, CFA

Loomis, Sayles & Company, L.P.

19%
9%-29%
Absolute-Return Fixed Income

John Orrico, CFA
Todd Munn
Roger Foltynowicz, CAIA
Gregg Loprete

Water Island Capital, LLC

19%
9%-29%
Arbitrage and Event Driven