Catalyst is grabbing the bull by the horns again in the alt space.

This time, the New York firm has filed with the SEC to launch the Catalyst/EquityCompass Share Buyback Fund.

The fund will invest in stocks of companies that have announced share buybacks.

According to founder and chief executive Jerry Szilagyi, the buyback fund is a "'follow-on' to the success we have had with our “Insider” funds which purchase stock of companies where corporate insiders have been purchasing their own company shares."

The product is also being launched in conjunction with the EquityCompass Strategies which created and maintains a share buyback index currently being used for structured note products, according to Szilagyi. However, the fund will not be following the index, it will be an actively managed version of the share buyback strategy, he told MFWire.

Catalyst uses its insider trading strategy in a number of funds:

Long-only funds:

  Catalyst Insider Buying Fund (INSAX & INSCX): Large-cap equity focused on companies with significant corporate insider buying

  Catalyst Value Fund (CTVAX, CTVCX & CTVIX): Small/Micro-cap deep value equity using an insider buying research overlay

  Hedged and Long/Short funds:

  Catalyst Strategic Insider Fund (STVAX & STVCX): Hedged equity portfolio driven by corporate insider knowledge and complemented by premium income and volatility management from writing covered call options on equity indexes

  Catalyst Insider Long/Short Fund (CIAAX & CIACX): Market neutral Long/Short equity with long positions in companies with significant corporate insider buying activity and short positions in companies with significant corporate insider selling

The launch follows the September unveiling of the Catalyst Hedged Futures Strategy. 

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