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Monday, October 28, 2013

Altegris Launches a Fix Income Alt

Reported by Katie Lobosco

Altegris [profile] has launched its Fixed Income Long Short Fund.

The fund reportedly seeks to achieve total return through a combination of capital appreciation and current income, according to the company. Typically, 80 percent of its assets will be invested in long and short positions.

“Many U.S. fixed-income investors are heavily invested in long-only strategies, but recent volatility in the bond markets has been a wake-up call for investors susceptible to interest rate movements,” said Jon Sundt, president and CEO of Altegris and the Altegris Family of Mutual Funds.

Hedge fund manager RockView Management and asset manager Premium Point Investments serve as the fund's sub-advisors.

Here is the press release:
Company Press Release


New Investment Vehicle Offers Access to Long and Short Fixed Income Portfolio Managers Within a Liquid, Actively Managed Mutual Fund/i>

JOLLA, CA — October 24, 2013 — Altegris, provider of premier alternative investments, announces the recent launch of a new multi-manager, alternative strategy mutual fund, the Altegris Fixed Income Long Short Fund (FXDAX/FXDCX/FXDIX/FXDNX).   Since the Fund’s inception on February 28, 2013, it now has $55.56 million in AUM.  

The Fund seeks to achieve total return through a combination of capital appreciation and current income. Its strategy entails investing in long and short positions in a wide variety of fixed income opportunities, including high yield corporate bonds, convertibles, mortgage-backed securities as well as sovereign debt positions. The Fund is not tied to a benchmark, enabling its portfolio managers to freely move between asset classes in search of returns.  

“Many U.S. fixed-income investors are heavily invested in long-only strategies, but recent volatility in the bond markets has been a wake-up call for investors susceptible to interest rate movements,” said Jon Sundt, President and CEO of Altegris and the Altegris Family of Mutual Funds. “The Altegris Fixed Income Long Short Fund provides investors seeking fixed income diversification with a flexible, actively managed strategy with the potential for improving overall risk-adjusted returns regardless of interest rate directionality.”  

RockView Management, LLC and Premium Point Investments LP serve as the Fund’s sub-advisors. Stamford, CT-based RockView is a high yield and convertible corporate credit hedge fund manager with more than 20 years of hedging experience. New York, NY-based Premium Point is an institutional asset manager which was founded in June 2008 and engages in fundamental credit investing and relative value trading in the mortgage markets.  

“RockView and Premium Point are managers that we selected through our rigorous due diligence process.  They have tenured histories of trading and shorting across credit cycles and interest rate environments,” said Eric Bundonis, CFA, Vice President and Co-Director of Research and Investments for AltegrisAdvisors.  

Altegris has scheduled an advisor-only webinar, “Need a Fixed Income Alternative?” for Nov. 12 at 12:00 pm EST/9:00 am PST to discuss the Fund with the portfolio managers from Altegris, RockView and Premium Point. To sign up for the webinar, please call 800.828.5225  


The Fund’s investment in fixed income securities, loan obligations and derivatives subjects it to various risks including, but not limited to, market risk and volatility, credit risk, collateral risk; foreign investment risk, currency risk, prepayment risk, mortgage and real-estate sector concentration risk, liquidity risk, and interest rate risk; when interest rates rise, the value of fixed income securities typically fall. Credit risk is the possibility that an issuer will fail to pay interest and principal when due.  The credit risk and potential for default is heightened for lower quality high yield or junk bond securities.  

The Fund will engage in short selling and short position derivative activities, which are considered speculative and involve significant financial risk. Short positions profit from a decline in price so the Fund may incur a loss on a short position if the price increases.  The potential loss on an uncovered short is unlimited. Shorting strategies may also result in higher taxes and transaction costs, which reduce return.  

The use of derivatives such as futures, options, credit default swaps, and repurchase agreements involves leverage risk, tracking risk, potential for issuer or counterparty default, and higher transaction costs. Long options may expire worthless.  Leverage can magnify the fund’s potential for gain or loss.  Foreign investments may involve heightened risk due to currency fluctuations, economic and political instability, less liquidity, and differing auditing and legal standards.  These risks are magnified for emerging markets.   

The Fund is new with a limited history of operations.  The manager or sub-adviser’s judgments about the attractiveness and value of a particular security may prove to be inaccurate and may not produce the desired results.  The fund is non-diversified for purposes of the Investment Company Act of 1940, and may invest in fewer fixed income securities or smaller companies.  Performance may be more sensitive to any single market, economic, or regulatory occurrence than a more diversified fund. There is no guarantee that adequate capital will be raised or that the Fund will achieve its investment objective.  

Investors should carefully consider the investment objectives, risks, charges and expenses of the Altegris Fixed Income Long Short Fund. This and other important information about a Fund is contained in the Fund’s Prospectus which can be obtained by calling (888) 524-9441. The Prospectus should be read carefully before investing. Funds are distributed by Northern Lights Distributors, LLC, member FINRA. Altegris Advisors and Northern Lights Distributors, LLC are not affiliated.  

About Altegris

Altegris searches the world to find what we believe are the best alternative investments. Our suite of alternative investment solutions are designed for financial professionals and individuals seeking to improve portfolio diversification.  

With one of the leading research and investment groups focused solely on alternative investments, Altegris follows a disciplined process for identifying, evaluating, selecting, and monitoring investment talent across a spectrum of alternative strategies including managed futures, global macro, long/short equity, event-driven and others. As veteran experts in the art and science of alternatives, Altegris guides investors through the complex and often opaque universe of alternative investing.  

Alternatives are in our DNA. Our very name, Altegris, highlights our singular focus on alternatives, the highest standards of integrity, and a process that constantly seeks to minimize investor risk while maximizing potential returns.  

The Altegris group of affiliated companies is wholly-owned and controlled by (i) private equity funds managed by Aquiline Capital Partners LLC and its affiliates (“Aquiline”), and by Genstar Capital Management, LLC and its affiliates (“Genstar”), and (ii) certain senior management of Altegris and other affiliates. Established in 2005, Aquiline focuses its investments exclusively in the financial services industry. Established in 1988, Genstar has over $4 billion of assets under management and focuses its investment efforts across a variety of industries and sectors, including financial services. The Altegris companies include Altegris Investments, Altegris Advisors, Altegris Funds, and Altegris Clearing Solutions. As of September 30, 2013, Altegris had $2.68 billion in client assets, and provided clearing services to $671 million in institutional assets.

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