Catalyst Launches Hedged Commodity Fund And IPO Fund
Alternative specialist Catalyst Funds launched a pair of mutual funds on October 1: The Catalyst Hedged Commodity Strategy Fund (MUTF: CFHAX ), an alternative commodity fund, and the Catalyst IPOx Allocation Fund (MUTF: OIPAX ). As indicated by their respective names, the Hedged Commodity Strategy Fund provides investors with hedged exposure to a broad range of commodities, while the IPOx Allocation Fund invests in the stock of new public companies. Catalyst CEO Jerry Szilagyi says the new funds offer investors “intelligent alternative” investment products. “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 said, in an October 1 press release. Hedged Commodity Fund The Catalyst Hedged Commodity Strategy Fund gains exposure to commodities by investing in call and put options on physical commodity futures contracts. Positions may be long or short, and may include “high-quality short-term” fixed-income securities, especially two-year (and under) Treasurys, in addition to traditional commodities. The fund’s investments will be diversified across agricultural products, energy, and metals, and positions will typically be held for less than a year. Allocations will be determined on the basis of options volatility pricing, seasonal dynamics, and technical indicators. The fund’s strategy was designed to be independent of commodity-market direction and to produce returns that are uncorrelated with global equity and commodity-market returns. It will be managed by the same investment team that manages the Catalyst Hedged Futures Strategy Fund (MUTF: HFXAX ), and it will implement a similar investment strategy. IPOx Allocation Fund The Catalyst IPOx Allocation Fund invests specifically in U.S. IPOs. The fund will purchase stocks at and shortly after their IPOs, and it will diversify its investments across market-capitalizations. The fund’s strategy will consist of two components: Core Long and Dynamic . The former will track the IPOX U.S. 100 Index, which is a value-weighted index of the 100 largest U.S. IPOs. The latter will invest in 30 to 70 IPOs believed to be “valued attractively” and not included in the Index. For more information, visit catalystmf.com .