The Fund stated by its name, specializes in mergers and acquisitions (M&A) investing in companies that are the subject of a deal, such as a merger, takeover or buyout. When these deals are announced, there is an opportunity for “merger arbitrage,” the act of investing in a merger or acquisition target and holding the stock until the deal closes. This strategy aims to capitalize on the spread between the price of the targeted company following the announcement and the deal price upon closing.

Investing in a fund that specializes in mergers and acquisitions may offer distinct advantages to investors. One, M&A activity continues to be robust. Two, an M&A fund tends to have a lower correlation to the overall stock market and may be less impacted by bear markets than a typical equity fund. Deal volume is the primary influence on the returns of the arbitrage portion of the fund, and that may rise or fall in recession, as hard times may prompt industry consolidation. Three, merger arbitrage is not a strategy for the do-it-yourself investor. It is the full-time occupation of professional investment managers who specialize in arbitrage. It takes expertise, industry resources for research and analysis, and plenty of time and money, as the road to success lies in the ability to capitalize on many small returns over time. For these reasons, a mutual fund offers investors an excellent avenue to the world of arbitrage.

The Fund focuses its investment strategy in merger and acquisition arbitrage to achieve total returns that are attractive to investors seeking positive returns in various market conditions without excessive risk of capital. The Fund focuses on securities involved in announced mergers and acquisitions in order to achieve a positive return not correlated to the overall market by capturing the spread between the purchase price and the ultimate acquisition price on specific equity investments