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Only what I found on Google and in the prospectus. A "hedge-like" fund that doesn't short; a rookie manager with 3 years experience as an analyst; a company that's not had this kind of fund before, that also hasn't produced excitingly positive equity funds for several years; investing in an area with dull returns ("The Morningstar MSCI Event-Driven Index was up just 1.17% year-to-date" from a 10-9-2013 article linked below.) http://online.wsj.com/news/articles/SB10001424052702304773104579266713330051196 www.investmentnews.com/article/20131009/FREE/131009898
Only costs $2.5K for a taste; the market eventually rises, and maybe Arvind Navaratnam is the next Peter Lynch. Or, maybe Fido whelped another dog.
The prospectus looked like a "go anywhere, buy anything" fund, so I would match its future performance against FPA Crescent (even with its bloat) to see if it can be called successful. At least it does reduce its expenses when it performs poorly, but it has the option of changing its comparator apparently without a shareholder vote. I'd only use fun money at this time.
Event-driven investing (things like merger arb) is never going to be more than a single. A double is a very good year. However, it is (usually) a single in good years and bad. To me, I guess it's a bond/cash alternative. It is not a core part of a portfolio. Those still interested should consider Arbitrage Event-Driven.
I have not looked at the prospectus, but if this is anything like most Event Driven funds, those expecting stock-like returns on a good year are going to be disappointed (possibly significantly so.)
Reply to @scott: Not necessarily arguing, but Gabelli in more than one of his very good and steady funds (not just singles) has explicitly stated their investment philosophy to be event-driven. So your conclusion overstates the matter perhaps. Soviero (FLVCX; always aiming for doubles at the least) not dissimilarly. I concur in the take that it would be best not to go all in.
Comments
http://online.wsj.com/news/articles/SB10001424052702304773104579266713330051196
www.investmentnews.com/article/20131009/FREE/131009898
Only costs $2.5K for a taste; the market eventually rises, and maybe Arvind Navaratnam is the next Peter Lynch. Or, maybe Fido whelped another dog.
The prospectus looked like a "go anywhere, buy anything" fund, so I would match its future performance against FPA Crescent (even with its bloat) to see if it can be called successful. At least it does reduce its expenses when it performs poorly, but it has the option of changing its comparator apparently without a shareholder vote. I'd only use fun money at this time.
I have not looked at the prospectus, but if this is anything like most Event Driven funds, those expecting stock-like returns on a good year are going to be disappointed (possibly significantly so.)
Merry Christmas
Ted