MutualFundWire.com: Newly Spun-Off Pyxis Launches an Alternative Income Fund

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Tuesday, January 17, 2012

Newly Spun-Off Pyxis Launches an Alternative Income Fund

Fresh from its spin-off from Highland Capital, Pyxis Capital launched a mutual fund last week and is preparing to roll out another fund before the month ends.

Pyxis -- formerly known as Highland Funds Asset Management -- rolled out the Pyxis Alternative Income Fund on January 13 [prospectus]. The launch brings the firm's mutual fund count to 21.

Dallas-based Pyxis hired Anchor Capital Management Group, Inc. as the fund's sub-advisor. Anchor also sub-advises the Pyxis Alpha Trend Strategies Fund.

"One thing we learned in 2008 is that credit markets aren't always non-correlated to the overall market," said Joe Dougherty, president of Pyxis Capital, in an interview.

"In 2009, we started thinking of a long-short credit strategy that could work in a mutual fund wrapper," he said.

Pyxis is offering four share classes of the fund. Expense ratios are 305 basis points for A shares, 370 bps for C shares, 320 bps for R shares and 270 for Y shares.

The fund is available through some wirehouses and independent broker-dealers.

Meanwhile, Pyxis is continuing to broaden its product line. The investment management firm plans to launch a natural resources fund before January ends.

Pyxis spun off from Highland Capital on December 15. The Highland mutual fund family rebranded to Pyxis on January 9.

Company Press Release

PYXIS CAPITAL LAUNCHES ALTERNATIVE INCOME FUND

Anchor Capital Management Group Will Serve as Sub-Advisor

Dallas, TX – January 17, 2012 – Pyxis Management, L.P. ("Pyxis Capital") today announced the launch of the Pyxis Alternative Income Fund (ticker: HHFAX). Anchor Capital Management Group, Inc. ("Anchor Capital") will serve as the fund’s sub-advisor.

The Pyxis Alternative Income Fund invests both long and short across securities benchmarked to high yield corporate bonds, such as ETFs. Unlike traditional long only fixed income strategies, this fund seeks to profit from both rising and falling prices, while maintaining low correlation to traditional benchmarks and minimizing volatility through active hedges. The fund is expected to be classified in the Morningstar® Nontraditional Bond category.

"The Pyxis Alternative Income Fund offers mutual fund investors a strategy that until recently was typically only available through exclusive hedge funds and large institutional accounts," said Joe Dougherty, President of Pyxis Capital. "Adding this option to our family of funds will help us serve the unique needs of our growing client base of investment advisors and individuals who are looking beyond the limitations of a typical fixed income fund."

The Pyxis Alternative Income Fund will benefit from Anchor Capital’s deep experience and proprietary technical analysis. The firm’s proprietary strategy and methodology, which will be deployed in the Pyxis Alternative Income Fund, has been in place since 2007.

"With interest rates at historic lows, investors are rethinking their fixed income strategies," said Eric Leake, Anchor Capital Chief Investment Officer and Co-Portfolio Manager of the Pyxis Alternative Income Fund. "With our focus on capitalizing on short, intermediate and long term trends, we provide a liquid alternative to traditional fixed income investing for today's volatile markets."

About Anchor Capital Management Group, Inc.

Launched in 1994, Anchor Capital Management is an employee-owned Registered Investment Advisor based in Irvine, California, with more than $265 million under management and advisement. The firm specializes in Alternative Fixed Income and Global Long/Short Equity strategies, and offers hedge funds, funds and privately managed accounts nationwide for clients that include funds of funds, pension funds, investment advisors and private investors.

About Pyxis Capital

Pyxis Capital L.P., headquartered in Dallas, TX, is a SEC-registered investment advisor with approximately $3 billion in assets under management across 20 funds. It is one of the one of the most respected and experienced alternative investment managers serving the registered product market. As a manager of managers, Pyxis Capital is dedicated to identifying and retaining best in class asset managers to serve as sub-advisers to its funds. The Pyxis Capital funds complex, which spun off of Highland Capital Management at the beginning of 2012, includes a diverse set of investment strategies—from broad-based equity and fixed income investments to alternative strategies including long/short and trend following as well as alternative credit strategies. For more information, go to www.pyxisais.com.

Investors should consider the investment objectives, risks, charges and expenses of the Pyxis Funds carefully before investing. Please call 1-877-665-1287 or visit www.pyxisais.com for more information on the Funds. Please read the prospectus carefully before you invest.

Securities may be offered through NexBank Securities, Inc., an affiliate of Pyxis Capital Management, L.P. NexBank Securities, Inc. is a FINRA member firm.