AlphaCentric Converts Hedge Fund to Mutual Fund

Dec 20 2016 | 7:42pm ET

Liquid alternative provider AlphaCentric has announced the conversion of an options-focused hedge fund managed by Theta Capital Partners managing director Russell Kellites to a mutual fund format. 

The new fund, named the AlphaCentric Hedged Market Opportunity Fund, trades under the symbol HMXIX and utilizes the same option strategy as its hedge fund predecessor.

It employs a systematic, rules-based options strategy that includes premium collection, volatility trading and trend following to make long and short investments in call and put options on instruments that reflect the S&P 500 and its volatility.

The fund’s approach is based on using an algorithm developed via artificial intelligence programs to analyze market data, the company said. The investment strategy seeks to mitigate risk by staggering position maturity dates and utilizing exchange-traded options guaranteed for settlement.

The new fund retains Kellites as portfolio manager, as its hedge fund predecessor.

“The AlphaCentric Hedged Market Opportunity Fund gives investors access to a proven equities-based options strategy with low volatility and low market correlation,” said Jerry Szilagyi, CEO of AlphaCentric. “HMXIX's strong track record is a perfect complement to the AlphaCentric family, having generated a 12.32% annualized return since 2011.”

Founded in 2014, AlphaCentric offers five hedge-fund-like strategies in a mutual fund format, providing investors transparency and daily liquidity with lower fees and minimums than many hedge funds. 


In Depth

Q&A: Decathlon Capital On Revenue-Based Alternative Lending

Oct 30 2017 | 3:49pm ET

The explosion in private credit activity since the end of the financial crisis is...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Saxby: Not All EBITDA Is Created Equal

Nov 30 2017 | 8:02pm ET

Record levels of dry powder are driving competition among private equity firms to...