Catalyst Completes Conversion Of Auctos Hedge Fund
By DailyAlts Staff The Catalyst/Auctos Multi-Strategy Fund (MUTF: ACXAX ) was formally converted from a hedge fund to a ’40 Act alternative mutual fund on August 17. The fund conversion was the result of Catalyst’s acquisition of Auctos, which also included the latter’s separately managed account (“SMA”) business, as covered by DailyAlts in a July 29 article . Similar to most other managed futures funds, the Catalyst/Auctos Multi-Strategy Fund’s investment objective is capital appreciation without correlation to global equity markets. It pursues this end by means of a two-pronged managed futures strategy consisting of: Long and short positions on futures contracts; and Holding cash and cash equivalents. Examples of sectors where the fund invests include stock indices, currencies, interest rates, metals, energy, livestock, soft commodities, and grains. Catalyst Capital Advisors, the fund’s investment advisor, makes investment decisions on the basis of its proprietary investment program. All positions are structured with mathematical limitations designed to anticipate all market scenarios, and the fund’s portfolio diversified across several markets and systems. Unlike most new alternative funds, the Catalyst/Auctos Multi-Strategy Fund’s past as a hedge fund provides it with a seven-year track record, depicted below: “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,” said Catalyst CEO Jerry Szilagyi. “This Fund is another example of Catalyst’s commitment to providing ‘intelligent alternative’ investment strategies.” The Catalyst/Auctos Multi-Strategy Fund is the fourth hedge fund Catalyst has converted to a ’40 Act liquid alternative. The Catalyst Hedged Futures Strategy Fund (MUTF: HFXAX ), one of Catalyst’s other converted hedge funds, was in the top 12% of funds in Morningstar’s Managed Futures category for the first half of 2015 Shares of the Catalyst/Auctos Multi-Strategy Fund are available in A (ACXAX), C (MUTF: ACXCX ), and I (MUTF: ACXIX ) classes; with respective net-expense ratios of 2.19%, 2.94%, and 1.94%. The minimum initial investment for all share classes is $2,500. For more information, download a pdf copy of the fund’s prospectus . Past performance is not necessarily predictive of future performance.