Another hedge fund has been shepherded into '40 Act territory, thanks to Catalyst Capital Advisors
The firm, headed by chief executive Jerry Szilagyi
, filed with the SEC
for permission to launch the Catalyst Hedged Futures Fund
The objective of the fund is capital appreciation and capital preservation in all market conditions, with low volatility and low correlation to the US equity market. It aims to accomplish this by buying and selling options and option spreads on stock index futures. In this way, the managers plan to profit in three ways, premium collection, volatility trading, and trend following under certain circumstances.
The strategy has a seven year track record as a hedge fund. Since its December 2005 inception date, the fund has generated an average annualized return of 21.51 percent with no down years compared to a 3.84 percent annualized return for the S&P 500 Index.
The move follows Catalyst's recent hiring of George Amrhein
as head of business development. The firm is also seeking internal and external wholesalers
Szilagyi told MFWire
that Catalyst is continuing research on expanding its product line, including hedge funds for transition into '40 Act land:
We are trying to provide unique products that are uncorrelated to the equity and fixed income markets that provide a level of risk management and volatility management. George actually identified this area as an opportunity for us, so we are looking for hedge funds that are out there have interesting and successful investment stories.
Catalyst is marketing these funds as products that offer hedge strategies with lower minimums, more liquidity and daily transparency.
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