Castlemaine Funds is looking to make a big splash in the liquid alts world in 2016 and beyond. Just less than three months after filing paperwork for its first quintet of alternative mutual funds, and clearly undeterred by some high profile fund closures, the firm simultaneously launched all five funds in the final week of December, just in time to ring in the New Year:
- Castlemaine Emerging Markets Opportunities Fund (MUTF:CNEMX)
- Castlemaine Event Driven Fund (MUTF:CNEVX)
- Castlemaine Long/Short Fund (MUTF:CNLSX)
- Castlemaine Market Neutral Fund (MUTF:CNMNX)
- Castlemaine Multi-Strategy Fund (MUTF:CNMSX)
New Firm, One Portfolio Manager and Five Funds
Castlemaine LLC, the investment advisor to each fund, is based in New York City and was formed in 2015. The firm's Chief Investment Officer and Chief Compliance Officer, Alfredo Viegas, is going to be a busy man. He is the sole portfolio manager for all five funds, each of which employs a different alternative investment strategy. Four of the five funds appear to be making direct investments in securities and building alternative investment portfolios, while the fifth (the Multi-Strategy Fund) invests in a collection of other funds.
The Emerging Markets Opportunity Fund seeks high total returns with a secondary goal of generating investment income. Its investments include both long and short positions in equity and debt securities from issuers based in emerging-market countries or countries (such as Hong Kong and Singapore) with economies tied to emerging markets.
Castlemaine's Event Driven Fund pursues an objectives of capital appreciation by taking both long and short positions in equity securities, such as shares of stock and ETFs. The fund focuses on corporate events, such as mergers and bankruptcies, and combines its long/short equity positions with an options-trading strategy and up to 130% leverage.
The Long/Short Fund also pursues an objectives of capital appreciation by taking both long and short positions in equity securities and ETFs. The fund invests in both U.S. and non-U.S. equities, and may also use up to 130% leverage, although it will generally fluctuate between 50% and 80% net-long exposure.
The Castlemaine Market Neutral Fund invests in stocks, bonds, and options, with the primary and secondary objectives of total return and income generation, respectively. Its long and short positions are designed to cancel one another out on a net basis, providing "market neutral" exposure.
And finally, the Castlemaine Multi-Strategy Fund operates as a "fund of funds" across a variety of alternative strategies, including those employed by both affiliated and unaffiliated funds. The fund uses Castlemaine's "dynamic asset allocation" process in pursuit of optimal diversification and portfolio weightings that reflect prevailing market conditions. The Multi-Strategy Fund will allocate its assets to the following investment strategies:
- Long/Short Equity
- Event Driven
- Market Neutral
- Emerging Markets Long/Short
- Macro-Risk Parity
- Global Macro
- Unconstrained Bonds
- Managed Futures
- Convertible Arbitrage
- Capital Structure Arbitrage
All five funds carry an investment management fee of 1.24%, and each is currently offered in a single share class.
For more information, read the shared prospectus of all five funds.
Jason Seagraves contributed to this article.