Catalyst Converts Auctos Managed Futures Hedge Fund Into Mutual Fund

Aug 21 2015 | 11:32am ET

Liquid alternative mutual fund company Catalyst Funds has formally converted the managed futures hedge fund it acquired when it bought Auctos Capital Management in mid-July.

The Catalyst/Auctos Multi-Strategy Fund, which carries the symbol ACXIX, was started in 2007 and originally structured as a hedge fund. The fund is Catalyst’s fourth conversion of an alternative investment fund into a mutual fund.

As a managed futures vehicle, the fund takes both long and short positions in futures contracts according to several strategies including relative value, trend following, pattern recognition and calendar spreads. 

Positions range across multiple sectors of financial and commodity futures contracts, and can vary significantly in time frames. Sectors in which the fund invests may include equity indices, currencies, interest rates, metals, energy, livestock, soft commodities and grains. 

The fund will also hold a large portion of its assets in cash, money market mutual funds and other cash equivalents, according to a Catalyst statement. Some or all of the cash equivalents may serve as margin or collateral for the fund’s investments in futures contracts.

“The launch of ACXIX comes on the heels of our acquisition of Auctos Capital Management,” said Jerry Szilagyi, CEO of Catalyst Funds, in the statement. “The success of ACXIX’s predecessor hedge fund was a key driver of this acquisition, and we are proud to bring the strategy to the mutual fund market. 

Kevin Jamali, who oversaw management of the fund before the conversion, will continue to serve as portfolio manager. 

Catalyst offers a range of strategies and liquid alternative products in mutual fund form. The company’s family of 25 funds encompasses a wide spectrum of investment approaches, including dynamic equity, hedged strategies, alternative income and global equity. The Huntington, NY-based firm has more than $2 billion in assets under management.

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