RiverNorth Capital Management has launched the RiverNorth/DoubleLine Strategic Opportunity Fund, a closed-end fund that opportunistically invests in fixed income securities and tactically invests in closed-end funds.
The fund debuted on 28 September on the NYSE under the symbol OPP.
RiverNorth serves as the fund’s investment adviser and DoubleLine Capital serves as sub-adviser to the fund.
“We are extremely excited to again partner with DoubleLine to add another unique multi-manager strategy to RiverNorth’s existing portfolio of closed-end fund offerings,” says Patrick Galley (pictured), RiverNorth’s chief investment officer. “The fund will leverage RiverNorth’s and DoubleLine’s long performance track records across market cycles and history of working together to capitalise on market inefficiencies in both the closed-end fund and fixed income markets.”
The fund seeks to achieve its investment objective of current income and overall total return by allocating among two principal investment strategies: the Tactical Closed-End Fund Income Strategy, managed by RiverNorth, and the Opportunistic Income Strategy, managed by DoubleLine.
The fund has flexibility to strategically allocate between these two strategies in order to select the best relative opportunities in different market environments. The fund will provide diversification across numerous fixed income asset classes with careful regard to balancing credit and interest rate risk.
“The team at DoubleLine is very pleased to extend our strategic relationship with RiverNorth into our first jointly-managed closed-end fund,” says Jeffrey Gundlach, CEO and chief investment officer of DoubleLine. “As with our open-end fund collaboration, the new closed-end fund brings together complementary investment strategies. Our respective teams have experience not only in bottom-up security selection but also in working successfully together to manage sector allocations to tap undervalued and avoid overvalued market segments.”
The fund raised gross proceeds of approximately USD210 million in its initial public offering of shares of common stock and, should the underwriters exercise the over-allotment option in full, which may or may not occur, the fund will raise gross proceeds of approximately USD242 million.
