GAAGX

About GAAGX

GMO Alternative Allocation Fund Class I is a mutual fund that specializes in delivering broad exposure to alternative investment strategies with the objective of generating positive total return and enhancing portfolio diversification. The fund pursues returns above the FTSE 3-Month Treasury Bill Index over a full market cycle by investing in a diversified mix of underlying strategies managed by GMO’s teams. These strategies encompass merger arbitrage and event-driven approaches, equity market neutral tactics, global macro positioning, relative value credit, managed volatility, and systematic put writing, among others. Distinguished by its dynamic allocation process, the fund’s management team adjusts exposures both from a top-down perspective—allocating capital by risk and opportunity—and a bottom-up approach, adapting exposures within each underlying strategy to align with alpha potential. This multi-layered allocation aims to reduce correlation with traditional asset classes, thus supporting diversification and risk management. The fund uses overlays to allow exposures beyond 100%, offering a more concentrated access to alternative alpha sources than typical fund-of-fund structures. Transparency, daily liquidity, and institutional expertise further reinforce its role as a multi-strategy solution for investors seeking to supplement core portfolios with differentiated, liquid alternative assets.