Catalyst Funds, a Huntington, New York-based mutual fund company, will acquire the Exceed Defined Shield Index Fund, increasing the firm’s AUM by $28 million to $6 billion overall. The fund will be renamed as the Catalyst/Exceed Defined Shield Fund (SHIIX), but will still be managed by Joe Halpern, the founder and CEO of Exceed Investments, a fund firm based in New York City.

Jerry Szilagyi Catalyst Capital Advisors CEO

A spokesperson from Exceed did not immediately return a call for comment.

Exceed will become the fund's subadvisor, while Catalyst takes over as advisor. Halpern will manage the fund from day-to-day, and Catalyst will provide oversight, marketing, and distribution. Catalyst filed the proxy for the acquisition yesterday and shareholders are expected to vote on the deal on July 31.

“The acquisition of the Exceed Defined Shield Fund expands Catalyst’s portfolio of distinct, alternative investment strategies with a proven track record,” states Jerry Szilagyi, CEO of Catalyst.

The new Catalyst fund uses investment strategies to limit losses during market declines while still gaining from market upswings.

“We believe these are great strategies to add to a portfolio to hedge equity risk and reduce correlation overall—particularly in light of the market being at all time highs,” Szilagyi tells MFWire.

This is the second time Catalyst has teamed up with Halpern to work on a fund. Late last year Catalyst brought Halpern on to manage the Catalyst Exceed Defined Risk Fund.  

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