Catalyst Launches 2 Alternative Mutual Funds

Nov 17 2014 | 1:31pm ET

Huntington, New York-based Catalyst Funds has launched two new liquid alternatives mutual funds.

The Catalyst Time Value Trading Fund and Catalyst/Princeton Hedged Income Fund employ strategies used in hedge funds run by the portfolio managers.

“We are proud to make these sophisticated strategies, previously only available via hedge funds, available to all investors in the form of mutual funds,” said Catalyst CEO Jerry Szilagyi in a statement. “The introduction of these funds continues Catalyst’s tradition of offering distinctive strategies for investors, with a focus on the liquid alternative and alternative income spaces.”

Managed by Gerald Black and Jeff Dean, the Catalyst Time Value Trading Fund primarily writes short-term call and put options on S&P 500 Index futures, and invests in cash and cash equivalents—including high-quality, short-term fixed income securities. While options investments will focus mainly on S&P 500 Index futures, it may include other futures markets such as agricultural products, metals, currencies, interest rates and other financial instruments, as well as equity and other financial indices. The fund also buys and sells futures contracts themselves, and buys options as hedging vehicles and to seek incremental gain.

The Catalyst/Princeton Hedged Income Fund, managed by Munish Sood, primarily invests in fixed income securities in a range of products including: floating rate bank loans, agency and non-agency mortgage backed securities, asset backed securities, corporate bonds, debt securities of the U.S. and foreign governments and their agencies, certificates of deposit and other money market instruments. The Fund will hedge by actively shorting instruments linked to various indices and invest in various derivative instruments, including options and swaps, to manage short term market volatility risk, credit risk and interest rate risk.

The new funds increase Catalyst Funds’ liquid alternative funds to a total of 10 funds.

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