Catalyst Funds, an alternative-focused mutual fund company, has launched the Catalyst/Stone Beach Income Opportunity Fund (IOXAX), a conversion of the Stone Beach Special Opportunity Fund, a hedge fund.
Now available as a mutual fund product, the fund utilises the same strategy as its hedge fund predecessor and is Catalyst’s third conversion of this kind.
“The Catalyst/Stone Beach Income Opportunity Fund’s hedge fund predecessor offered a proven strategy that we are proud to now bring to mutual fund investors,” says Jerry Szilagyi, CEO of Catalyst Funds. “The addition of IOXAX to Catalyst’s product offerings continues our tradition of providing investors with a variety of liquid alternative strategies to complement a diversified portfolio.”
IOXAX seeks to generate high current income and superior returns over time while actively hedging to minimize declines during adverse market conditions. The Fund focuses on delivering monthly dividend income derived from investments in mortgage-backed securities (MBS), including U.S. agency and non-agency residential MBS, commercial mortgage-backed securities (CMBS) and other related instruments. Investments may include pass through and structured securities, such as fixed, floating and inverse floating rate collateralized mortgage obligations (CMOs) as well as interest-only and principal-only MBS. The Fund, which will be managed by David Lysenko and Ed Smith, employs an actively managed hedged strategy to limit declines in the net asset value of the portfolio in adverse market conditions.
