Hedge Fund-of-Funds Manager Launches a Third Mutual Fund
Reported by Katie Lobosco
Palmer Square Capital Management[profile], a manager of hedge fund-of-funds partnerships and alternative investments, launched its third mutual fund.
The Palmer Square Fountain Short Duration High Income Fund will reportedly be managed by Palmer Square's fundamental credit team and the firm's majority-owned affiliate Fountain Capital.
The fund will invest in short-duration, high-yield fixed, variable or floating rate debt securities, according to the Kansas-based company.
"We believe that high-yield securities with short maturities are often overlooked and inefficiently priced. These inefficiencies provide us with an opportunity to generate attractive returns with less risk than the broader high-yield market," said Doug Campbell, managing principal of Fountain Capital.
See the press release below:
Company Press Release
Palmer Square Capital Management Launches Third Mutual Fund
The new fund leverages a long, successful history of managing high-yield credit strategies almost exclusively for institutions
LEAWOOD, Kan., Oct. 15, 2013 -- Palmer Square Capital Management today announced that it has launched its third mutual fund. Palmer Square's Fountain Short Duration High Income Fund will be managed on a day-to-day basis by Palmer Square's fundamental credit team and the firm's majority-owned affiliate, Fountain Capital (Fountain) and overseen by Palmer Square.
"Over the last several years, there's been a strong demand for credit-related investments with the ability to produce income and solid risk-adjusted returns in various market and interest rate environments," said Christopher D. Long, President of Palmer Square Capital Management. "Leveraging a 23-year history of managing high-yield investments, our fundamental credit team has had great success meeting investor objectives across market cycles. This institutional history, track record and experience provides an exceptional foundation upon which to launch a fund that is specifically designed to meet the income needs of financial advisors and their clients."
The new fund will focus on generating income for investors by investing in short-duration, high-yield fixed, variable or floating rate debt securities. The investment team will seek to identify securities of companies with improving credit fundamentals in attractive industries, with a constant focus on managing downside risk.
According to Doug Campbell, Managing Principal of Fountain Capital Management, "We believe that high-yield securities with short maturities are often overlooked and inefficiently priced. These inefficiencies provide us with an opportunity to generate attractive returns with less risk than the broader high-yield market. We've been successfully managing this strategy for institutions for 14 years and are looking forward to bringing the same strategy to a wider range of investors through a mutual fund product."
The new fund will complement Palmer Square's existing lineup, which already includes two mutual funds – the Palmer Square Absolute Return Fund (PSQIX/PSQAX), a multi-strategy credit solution, and the Palmer Square SSI Alternative Income Fund (PSCIX/PSCAX) – as well as the firm's multiple private investment funds, many of which are focused on opportunistic credit.
Montage Investments, Palmer Square's parent company, will manage the distribution of the new mutual fund product. According to Gary P. Henson, CFA, CFP®, president and Chief Investment Officer of Montage Investments, "This fund has the unique distinction of providing investors access to a management team that has a 14-year history of managing short duration high-yield almost exclusively for institutional clients. I'm looking forward to adding it to the Montage lineup, as I believe it will enhance our goal of delivering distinct investment solutions to a wide range of investors."
About Palmer Square Capital Management Palmer Square Capital Management provides investment advisory services and manages portfolios of structured corporate credit, corporate credit and various hedge fund strategies for a diverse set of clients across institutional, family office, registered investment advisory firms and broker-dealers.
About Montage Investments Montage Investments provides institutional-caliber investments to investors and the financial professionals who serve them. Through a family of independent asset managers, unified by deep market insight and fundamental research, Montage offers alternative investment solutions across the spectrum of asset classes and strategies that include mutual funds, closed-end funds and separate accounts. Collectively, Montage Investments managed $18 billion as of September 30, 2013.
You should consider the funds' investment objectives, risks, charges and expenses carefully before investing. For a prospectus, or summary prospectus, that contains this and other information about the Funds, call 866-933-9033 or visit our website at www.palmersquarefunds.com. Please read the prospectus or summary prospectus carefully before investing.
Past performance does not guarantee future results.
Mutual fund investing involves risk. Principal loss is possible. Investments in high-yield bond funds involve additional risks. The fund principally consists on high-yield corporate debt securities, which are rated below investment grade. The price of such investments may react more to the ability of the company to pay interest and principal when due than changes to interest rates. They have greater price fluctuations and are more likely to experience a default than investment grade securities. Reduced market liquidity for these investments may occasionally make it more difficult to value them. The Fund's principal risks also include derivatives risk, leverage risk and foreign securities risk which can subject the Fund to price fluctuations not found in funds without these risks. The Fund is non-diversified and may concentrate its holdings in the securities of fewer issuers than that of a diversified fund.
The Palmer Square funds are distributed IMST Distributors, LLC.