RiverNorth Capital, a specialist in quantitative and qualitative closed-end fund trading strategies, has launched a new mutual fund, the RiverNorth/DoubleLine Strategic Income Fund, which will be sub-advised by DoubleLine Capital LP.
"RiverNorth specialises in opportunistic closed-end fund investment strategies that offer an alternative to conventional modes of investing," says Patrick Galley, RiverNorth’s Chief Investment Officer. "Our new mutual fund is designed to capitalise on market inefficiencies in both closed-end funds and the fixed-income markets in partnership with one of the best fixed income managers in the business. We’re very excited to work with DoubleLine, whose strategies complement our alpha-oriented approach."
The RiverNorth/DoubleLine Strategic Income Fund’s investment objective seeks to achieve current income and overall total return. The Fund’s portfolio managers are Mr. Galley; Stephen O’Neill, Portfolio Manager of RiverNorth; and Jeffrey Gundlach, CEO and Chief Investment Officer of DoubleLine. The fund is an open-end mutual fund and was opened to new investors on December 30, 2010.
The fund’s assets will be allocated among three principal strategies: Tactical Closed-end Fund Income, Core Fixed Income and Opportunistic Income. The amount allocated to each strategy may change depending on RiverNorth and DoubleLine’s assessment of market risk, security valuations, market volatility and the prospects for earning income and total return. RiverNorth manages the Tactical Closed-end Fund Income strategy, while DoubleLine manages the Core Fixed Income and Opportunistic Income strategies.
The Tactical Closed-end Fund Income strategy will primarily invest in income producing closed-end funds. The Core Fixed Income strategy will invest in a variety of fixed income instruments using active management of asset class exposure and will monitors the duration of the securities allocated to the strategy to seek to mitigate the strategy’s exposure to interest rate risk. The Opportunistic Income strategy will invest in fixed income instruments. The term "opportunistic" is used to indicate that portion of the Fund allocated to this strategy that will be invested when certain market conditions exist that offer potentially attractive risk adjusted returns.
"DoubleLine is excited to team up with RiverNorth on a mutual fund designed to deliver superior risk-adjusted returns through three complementary strategies," says Gundlach. "RiverNorth’s disciplined investment process and opportunistic philosophy are consistent with DoubleLine’s focus on active risk management and security selection. We look forward to a strong partnership."
