About The Firm

Independent, privately heldalternative fund platform

Orinda Asset Management is an independent, privately-held asset management firm that works exclusively with financial advisors to help lower risk in client portfolios through our alternative mutual fund platform.

The firm was founded by a group of seasoned investment professionals with significant experience in the financial services industry. The partners bring shared values and complementary skills, with expertise in the identification and selection of outstanding alternative investment managers, as well as in investor education, client servicing, and the distribution of specialized mutual funds.

Through our platform, we provide financial advisors and their clients access to liquid alternative investment solutions which are either managed internally or through strategic investment partners.

Why We Formed the Firm

We formed Orinda following the financial crisis because we believed that:

1

Investors were looking for a better way to gain true diversification in the construction of their portfolios.

2

The asset management industry was evolving.

There was a convergence between traditional and alternative asset management firms, and an increasing recognition of the opportunity to deliver liquid alternative strategies to a growing investor base.

3

Advisors acknowledged the need to access regulated, alternative investment strategies in a mutual fund format.

After decades of adherence to basic asset allocation models and a focus on relative performance, new thinking was taking hold regarding portfolio construction and the most effective way to achieve clients’ investment objectives.

Because of these transformations in the industry:

A team of experienced industry professionals with shared values, complementary skills and a common vision came together.

The firm was formed to provide efficient access to thoughtfully constructed alternative investment mutual funds for the professional investment advisor community and their clients.

Why Orinda

The Challenge: The Asset Management Industry Has Changed

Globalization of investment markets combined with technology advances have contributed to higher correlation of investment returns by various asset classes.

Large conglomerate mutual fund complexes have emerged reducing manager and fund diversification, with the 50 largest fund companies now controlling 85% of the assets according to Morningstar.

Investment structure and style preferences have changed, as passive, low-cost index funds and ETFs dominate investment portfolios to deliver low cost beta. The disappointing relative performance and higher fee levels by many active management funds over the last 10 years has accelerated this shift in investor preference.

The investor portfolio construction process has become more generic. The media’s attention on the returns of certain benchmarks to retail investors has put pressure on the portfolio allocator to be beholden to these benchmarks in the portfolio construction process. The business/career risk to the allocator of straying from the typical asset allocation mix has contributed to this generic portfolio construction process.

Observation: An Opportunity to Add Value

The changes occurring in the asset management industry today have provided an opportunity for a capacity constrained, niche manager to add value by accessing strategies or investment areas that are not being followed by larger investment firms.

Why Orinda

At Orinda, we strive to provide access to capacity-constrained niche managers and strategies that help diversify sources of risk and return in an investor’s portfolios. Our firm’s size and commitment to this area allows us to access these strategies for our advisor clients.

Firm/Partner Milestones

Begin
  • Careers Began at Liquidity Fund

    Traders for the largest Limited Partnership secondary trading desk in the country

  • Co-founded Kensington Investment Group

    Formed to capitalize on real estate securitization trend