Catalyst Funds Launches Two New Liquid Alternative Funds

Oct 1 2015 | 1:22pm ET

Liquid alternatives specialist Catalyst Funds has added two new strategies to its lineup of alternative mutual fund products. 

The first fund, named the Catalyst IPOx Allocation Fund, primarily invests in the common stocks of newly listed U.S. companies and will trade under the symbol OIPAX. The new fund will purchase stocks both at the time of the listing and in post-IPO trading, in companies across market capitalizations.

OIPAX’s portfolio is spit between two components, the Core Long Component and the Dynamic Component, each of which will utilize a distinct investment strategy. The Core Long Component will replicate the IPOX U.S. 100 Index, which is a value-weighted price index measuring the performance of the top 100 companies ranked quarterly by market capitalization in the IPOX U.S. Composite Index. The Dynamic Component will invest in 30-70 IPOs not included in the index, focusing on securities believed to be valued attractively relative to their price-to-sales multiples.

The second fund is the Catalyst Hedged Commodity Strategy Fund (CFHAX), which will typically invest in call and put options on physical commodity futures contracts, as well as short-term fixed income securities such as U.S. Treasury securities. Positions may be long or short in these options, and investments will be diversified across various commodity sectors including, but not limited to, agriculture, energy and metals. Positions will typically be held for under one year and will include cash and cash equivalents.           

Managed by the same investment team that guides the successful Catalyst Hedged Futures Strategy Fund, CFHAX's strategy will not generally depend on predictions of commodity market directions, and aims to produce returns uncorrelated with those of global equity or commodity markets. Sector allocations are based on option volatility pricing, seasonal dynamics and technical indicators. 

“The addition of OIPAX and CFHAX to Catalyst’s diverse portfolio of mutual funds is part of our continued expansion to offer investors ‘intelligent alternative’ investment products,” commented Jerry Szilagyi, CEO of Catalyst Funds, in a statement. 

“We believe these investment strategies offer investors a distinct approach with a strong upside, particularly in the current market where traditional investments are clouded with uncertainty,” he added.

Catalyst offers a range of strategies and liquid alternative products in mutual fund form with the goal of producing income and equity-oriented returns while seeking to control risk and volatility.

The company’s 27 distinctive funds, including four hedge funds that were converted into mutual fund products, encompass a wide spectrum of investment approaches including dynamic equity, hedged strategies, alternative income and global equity. Based in Huntington, NY, Catalyst has more than $2 billion in assets under management.

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