Global Macro Fund Launched03.27.2014
Catalyst Funds, an alternative-focused mutual fund company, has launch its 17th mutual fund, Catalyst Macro Strategy Fund (MCXAX).
MCXAX, which will make investments in a wide variety of asset classes with the goal of capital appreciation to achieve positive returns in all market conditions. is sub-advised by Castle Financial & Retirement Planning Associates Inc., a New Jersey corporation, whose chief executive, Al Procaccino, serves as MCXAX’s senior portfolio manager.
Based on market conditions, investments may take a long or short position in assets such as individual stock options, index options, financial futures and exchange traded funds (ETFs).
“We’re as close to a hedge fund as a ’40 Act vehicle can get,” said Procaccino. “We have a lot of latitude. We can go into any sector. We can use ETFs, individual securities, mutual funds, and we can even go short. If there’s a black swan event, we can hedge in different ways.”
Jerry Szilagyi, CEO of Catalyst Funds, said that Procaccino had been using some of the Catalyst Funds in his clients’ portfolios. “He was intrigued with what we were doing in terms of our fund offerings, and has been using this macro strategy approach in his clients’ accounts,” he said.
Szilagyi added, “He thought it would be a good idea to be able to offer that strategy in mutual fund structure. It will be a lot easier for him to implement the strategy across his hundreds of private accounts as opposed to trying to implement it individually in each account.”
Catalyst distributes its funds on a wholesale basis, meaning it markets to financial advisors who then use its funds in their clients’ portfolios. “Financial advisors are more and more gravitating towards the use of alternative type strategies, so there’s been a lot of growth in that area,” said Szilagyi.
MCXAX’s investments will tactically allocate among securities using both fundamental and technical analysis, focusing mainly on investments within the global equity markets. MCXAX will invest in other asset classes primarily to manage risk and hedge exposure to the equities market. MCXAX will also focus on companies involved in corporate events including spin-offs, share buybacks and corporate insider trading activity.
As a macro strategy fund, MCXAX’s investments are equity securities with market capitalizations over $200 million as well as fixed income securities including: US Treasury securities, corporate bonds, foreign fixed income securities and those of emerging markets.
Catalyst Funds currently offers 17 funds that provide various strategies with the goal of producing income- and equity-oriented returns while controlling risk and volatility.
“We have a pretty broad range of products,” said Szilagyi. “Some of them are traditional equity funds and fixed income funds. Most of our funds have some kind of a more distinctively unique strategy to them. For example, one of our large cap equity funds is called the Insider Buying Fund, which invests in companies where corporate insiders, CEOs, CFOs, board members are buying their company stock with their own money.”
Another equity fund that Catalyst launched last year is the Share Buyback Fund, which invests in companies that have announced share buybacks. “Even within more of our traditional assets classes, we try to have a more unique approach to the strategy, either event-driven or something more alternative.”
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