Recon Capital, an investment firm and exchange traded fund (ETF) provider has expanded its product offerings by partnering with Crow Point Partners, a boutique investment manager with a long track record in global equity, alternative, and specialty fixed income strategies, to offer the Crow Point Dividend Plus Fund.
“Today, with yield and volatility curves at historic lows, investors face an inordinate amount of assymetric risk. Investment management firms need to provide products to help them. We believe GDPIX does that,” says Peter DeCaprio, the CEO and co-founder of Crow Point. The Crow Point Dividend Plus Fund is comprised of three strategic sleeves: a rules-based global long/short equity portfolio, which is the majority of the fund’s invested assets; a short duration, high-quality floating-rate bond sleeve; and a dynamic options overlay for additional income.
According to Garrett Paollela (pictured), CEO of Recon Capital and the fund’s adviser, says: “Closed-end funds could be an ideal structure for long/short strategies and the market is long overdue for this distinct product.”
The long/short strategy seeks to create a short portfolio that minimises income and reinvests those short proceeds into a long portfolio that maximises income,” Paollela adds, “The closed-end fund structure gives a manager more flexibility than an open-end fund in constructing a long/short portfolio that results, for investors, in a balance between higher yields and risk mitigation.”
“We are excited to be working with Crow Point to use our expertise in options to deliver distinct and practical solutions for today’s yield buyer,” Paollela says. “Crow Point has a very experienced team ideally suited for this product. Managing duration exposure is a skill set that income investors will need in the years to come, and we are pleased to present a product that does that.“
Paollela adds: “Recon Capital is committed to using our operational infrastructure to deliver market-driven, value-added products that strive to meet the evolving needs of global investors and this product embodies that notion.