In 2020, EAM bought a controlling interest in James Alpha Advisors LLC, a liquid-alternatives investment shop, and subsequently rebranded it as Easterly Funds LLC. Easterly CEO Darrell Crate's ultimate goal is to model Easterly after his former employer Affiliated Managers Group, which takes ownership stakes in small asset managers and often distributes their funds. In 2021, EAM bought two value-investing shops, Levin Capital Strategies and Snow Capital, and adopted Snow's two mutual funds.
However, Crate inherited a lot of problems from James Alpha, including a confusing corporate structure, a lineup full of tiny and lackluster funds, and high fees. In 2021, the Easterly funds came under the control of a new fund board chaired by Crate, which began to lower expenses and rationalize the lineup. Between 2021 and 2023, the board liquidated nine of the 12 former James Alpha funds, leaving a compact lineup of five stable funds with seasoned managers.
Those moves have been encouraging, but expenses remain on the high side, and the new, compact fund lineup doesn't include any standouts. Much of the heavy lifting is done, but there's plenty more to do before Crate's vision can be realized.