NEW YORK, NY--(Marketwired - March 27, 2017) - Westchester Capital Management ("WCM"), Investment Adviser to the $3.8 billion WCM Alternatives mutual fund family, announced today the launch of an investor share class for the WCM Alternatives: Event-Driven Fund (WCERX). The new share class provides an additional access point for investment advisors seeking strategies designed with the goal to provide enhanced returns with low volatility in any market environment.
The WCM Alternatives: Event-Driven Fund utilizes a global, multi-event strategy which seeks to generate alpha from multiple sources prioritized by risk-adjusted metrics. The Fund has the flexibility to opportunistically invest in a variety of sectors, structures and strategies.
"Our decision to introduce a new investor share class is a response to client demand as advisors continue to seek access to uncorrelated investment strategies that aims to provide stable returns with limited exposure to equity and debt market movements," said Roy Behren, co-Portfolio Manager and Managing Member of WCM.
"Westchester Capital Management is a pioneer in liquid alternative mutual funds. We have strategically expanded our lineup of alternative investment offerings over the past few years and have broadened our offerings in both the open-end mutual fund and sub advisory space with large institutional players. We are excited to continue to provide investors with alternative investment options that come from over 30 years of our alternative investment experience," noted Michael Shannon, co-Portfolio Manager and Managing Member of WCM.
About Westchester Capital Management
Westchester Capital Management (WCM) is a registered investment adviser focusing on delivering innovative event-driven investment strategies targeted at financial advisers and their high-net-worth clients. WCM manages approximately $3.8 billion in assets through a variety of vehicles, including mutual funds, hedge funds, and variable insurance products. The Firm, based in Westchester County, New York, specializes in alternative investment strategies, and in 1989 launched the industry's first liquid alternative mutual fund dedicated to merger arbitrage. More information regarding WCM can be found at www.westchestercapitalfunds.com.
Before investing in the WCM Alternatives: Event-Driven Fund, carefully consider its investment objectives, risks, charges and expenses. For a prospectus or summary prospectus containing this and other information, please call 800.343.8959. Please read it carefully before investing.
Mutual fund investing involves risk. Principal loss is possible. Merger-arbitrage and event-driven investing involves the risk that the adviser's evaluation of the outcome of a proposed event, whether it be a merger, reorganization, regulatory issue or other event, will prove incorrect and that the Fund's return on the investment will be negative. Investments in foreign companies may entail political, cultural, regulatory, legal, and tax risks different from those associated with comparable transactions in the United States. The frequency of the Fund's transactions will vary from year to year, though merger arbitrage portfolios typically have higher turnover rates than portfolios of typical long-only funds. Increased portfolio turnover may result in higher brokerage commissions, dealer mark‐ups and other transaction costs. The higher costs associated with increased portfolio turnover may offset gains in the Fund's performance. The Fund may enter into short sale transactions for, among other reasons, purposes of protecting against a decline in the market value of the acquiring company's shares prior to the acquisition completion. If the price of a security sold short increases between the time of the short sale and the time the Fund covers its short position, the Fund will incur a loss. The amount of a potential loss on an uncovered short sale transaction is theoretically unlimited. Debt securities may fluctuate in value due to, among other things, changes in interest rates, general economic conditions, industry fundamentals, market sentiment and the financial condition of the issuer, including the issuer's credit rating or financial performance. Derivatives may create leverage which will amplify the effect of the performance of those instruments on the Fund and may produce significant losses. The Fund's hedging strategy will be subject to the Fund's investment adviser's ability to assess correctly the degree of correlation between the performance of the instruments used in the hedging strategy and the performance of the investments in the portfolio being hedged. Securities rated below investment-grade (and unrated securities of comparable credit quality), commonly referred to as "high-yield" or "junk" bonds, have speculative characteristics and generally have more credit risk than higher-rated securities. As a non-diversified fund, the Fund has a greater potential to realize losses upon the occurrence of adverse events affecting an issuer in its portfolio. The Fund's investments in smaller and medium-sized companies carry more risks than investments in larger companies. Companies with small and medium size market capitalization often have narrower markets. The fund has no operating history to evaluate and may not attract sufficient assets to achieve or maximize investment and operational efficiencies.
The WCM Alternatives: Event-Driven Fund is distributed by Quasar Distributors, LLC.
Definition: Correlation is a statistical measure of how two securities move in relation to each other.