Palmer Square Launches High-Yield Mutual Fund

Oct 15 2013 | 12:52pm ET

Leawood, Kansas-based Palmer Square Capital Management has launched its third mutual fund offering access to alternative strategies.

The Fountain Short Duration High Income Fund will be managed on a day-to-day basis by the firm's fundamental credit team and its majority-owned affiliate, Fountain Capital, 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, Palmer Square president, in a statement. “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.

Doug Campbell, managing principal of Fountain, said his firm has been successfully managing this strategy for institutions for 14 years and looks forward to “bringing the same strategy to a wider range of investors through a mutual fund product.”

The new fund joins Palmer Square’s existing mutual funds—the Absolute Return Fund, a multi-strategy credit solution, and the SSI Alternative Income Fund—as well as the firm’s multiple private investment funds, many of which are focused on opportunistic credit.

Palmer Square parent company Montage Investments will manage distribution of the new mutual fund.


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