Thanks to an acquisition, Schooner Investment Group [profile] just launched its second mutual fund. Last year Philadelphia-based Schooner inked a deal to snap up Nakoma Capital Management's Nakoma Absolute Return Fund [see MFWire.com, 9/1/2011], and today Schooner officially launched the new fund out of the old. The new offering, the Schooner Global Absolute Return Fund (SARIX) is PMed by research and quantitative strategies director Brian Chen and senior partner Alec Petro.
Company Press Release
Schooner Offers Multi-Asset Class Investment Option With the Launch of its New Global Absolute Return Fund
Absolute Return Mutual Fund veterans join the Schooner team to manage new offering
PHILADELPHIA, Feb. 28, 2012 -- Schooner Investment Group continues to target lower-risk fund strategies that aim to perform well in unpredictable markets with the launch of its second mutual fund, The Schooner Global Absolute Return Fund (Ticker: Ticker::SARIX), a multi-asset class fund providing both long and short exposure to domestic and international equities, fixed income, currencies and volatility. Schooner continues to build its alternative mutual fund business with SARIX joining the firm's flagship, hedged equity mutual fund, The Schooner Fund (Ticker: Ticker::SCNAX). SARIX is one of a handful of absolute return mutual funds that is global in scope, including exposure to emerging markets, and several asset classes.
Portfolio managers Alec Petro and Dr. Brian Chen, head up the SARIX team. Co-founders of Absolute Investment Advisors, a $4 billion family of absolute return mutual funds, this veteran duo has experience managing both hedge funds and absolute return mutual funds. Petro, a Senior Partner with Schooner, calls on his more than 25 years of portfolio management experience in his decision-making process. Dr. Chen, Director of Research and Quantitative Strategies with the Firm, applies the same discipline to his work in investment strategies as he did when obtaining his Ph.D. in electrical engineering and computer science, with a minor in finance, from MIT.
In an effort to offer a high level of diversification, the Portfolio Managers attempt to use investment strategies that do not move in tandem with the equity and fixed income markets, which comprise the bulk of most investors' portfolios. SARIX offers an alternative to advisors who are looking for investment opportunities with a history of low correlation to traditional stocks and bonds.
In an attempt to create consistent asset growth over time, Dr. Chen describes SARIX as a fund in which "positions are dynamically adjusted to reflect the rapidly changing market conditions that exist today, with the goal of producing a low, stable level of volatility. In an environment where many investors are avoiding heavy investments in equities, SARIX provides an alternative that is actively risk managed."
SARIX provides exposure to the same sources of return commonly seen with hedge funds, but in the more investor friendly mutual fund structure.
For more information, contact Schooner at 781.934.8525 or visit www.schoonermutualfunds.com.
The Fund will invest in derivatives, including futures, swaps and forward foreign currency contracts, which may be more volatile than investments directly in the underlying securities, involve additional costs and may involve a small initial investment relative to the risk assumed. In addition, derivatives are subject to futures risk, swap agreement risk, liquidity risk, interest rate risk and credit risk. Exposure to commodity markets through investments in commodities futures contracts may subject the Fund to greater volatility than investments in traditional securities. Changes in foreign currency exchange rates will affect the value of what the Fund owns and the Fund's share price. The Fund invests in foreign securities which involve political, economic and currency risks, greater volatility and differences in accounting methods. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer term debt securities. Short selling involves the risk of potentially unlimited increase in the market value of the security sold short, which could result in potentially unlimited loss for the Fund. Because the Fund invests in ETFs, it is subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of an ETF's shares may trade at a discount to its net asset value ("NAV"), an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact a fund's ability to sell its shares. The Fund is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, the Fund is more exposed to individual stock volatility than a diversified fund. This investment may not be suitable for all investors. Investments in absolute return strategies are not intended to outperform stocks and bonds during strong market rallies.
Before investing, carefully consider the Fund's investment objectives, risks, charges, and expenses. Please see the prospectus containing this and other information. To obtain a prospectus please visit www.Schoonermutualfunds.com and download a copy or call (866)-724-5997. Please read it carefully before investing.
Diversification does not assure a profit nor protect against loss in a declining market.
References to other mutual funds should not to be interpreted as an offer of these securities.
Correlation is a statistical measure of how two securities move in relation to each other.
The Schooner Global Absolute Return Fund is distributed by Quasar Distributors, LLC.