https://www.sec.gov/Archives/edgar/data/1355064/000158064224006059/alphstrategic-497.htm497 1 alphstrategic-497.htm
AlphaCentric Strategic Income Fund
Class A: SiiaX Class C: SiicX Class I: SiiiX
(the “Fund”)
October 7, 2024
This information supplements certain information contained in the Prospectus, Summary Prospectus and Statement of Additional Information for the Fund, each dated August 1, 2024.
______________________________________________________________________________
Effective on or about November 1, 2024, the Fund’s name will change to “AlphaCentric Real Income Fund”.
Effective on or before November 5, 2024, AlphaCentric Advisors LLC intends to retain CrossingBridge Advisors, LLC (“CrossingBridge”) as the new investment sub-advisor to the Fund, subject to approval by the Board of Trustees of the Fund. CrossingBridge is a boutique investment firm specializing in corporate credit, with an emphasis on high yield debt and opportunistic credit. CrossingBridge manages over $3.2B in assets across nine funds and includes a management team of nine investment professionals with an average of 20+ years of investment experience. The Fund’s investment strategy and focus on real estate related securities will remain intact. Additional information regarding the sub-advisory services provided to the Fund will be made available on or before November 5, 2024.
Effective on or before November 5, 2024, Goshen Rock Capital, LLC will no longer serve as the investment sub-adviser of the Fund.
* * * * *
You should read this Supplement in conjunction with the Prospectus, Summary Prospectus and Statement of Additional Information for the Fund, each dated August 1, 2024, which provide information that you should know about the Fund before investing. These documents are available upon request and without charge by calling the Fund toll-free at 1-844-ACFUNDS (1-844-223-8637) or by writing to 4221 North 203rd Street, Suite 100, Elkhorn, Nebraska 68022.
Please retain this Supplement for future reference.
Comments
If it were a start-up, perhaps I could understand. But now?
Share holder friendly is not something that comes to mind with funds associated with Jerry Szilagyi.
Thanks for sharing, Shadow, like you do.
Licensed financial professionals are restricted from posting a lot on social-media. In fact, whatever they post may become part of the records they must keep for the SEC and FINRA. For any business related information, they have to operate with KYC rules - and anonymous discussion boards are sort of nonstarters.
So, DS' hesitation to post at MFO and Big Bang may not be related at all to this new Alphacentric and CrossingBridge fund management deal. BTW, it must be a very fresh news as a web search on "Alphacentric CrossingBridge" only produces a link for this MFO OP by @TheShadow.
I am not saying anything YBB did not say, but I thought we should let DS feel welcome to post here and answer posters questions as and when he feels like doing.
FWIW, OP says, "The Fund’s investment strategy and focus on real estate related securities will remain intact."
https://alphacentricfunds.com/funds/siiix/
I will delete that sentence so it doesn't discourage the CB team from visiting.
I don't worry to much about this fund. Sold it late in 2021 and never used it after that. Since late 2012 it lost a lot and haven't rebounded much while other funds in the same space came back.
https://alphacentricfunds.com/funds/siiix/
It is up only 9.3% (YTD - see under Current Fund Performance table). The table above shows YTD 11.08% as of 9/30. So, this fund lost 1.8% in the first week of this month.
Further, as mentioned in one of the above posts above, as a registered investment adviser CrossingingBridge is regulated on where/ how it can conduct work related business. We don’t always see posts on message boards, and posting on a messaging board requires multiple steps of approval from the Firm’s Compliance team on how/what can be said about the Funds on such forums and Social Media in general as its not an approved method of communication and can be considered Fund marketing.
For those speculators, there is nothing hidden in content or timing. I continue to encourage direct communication. One way is to e-mail [email protected] Another would be call (914) 741-1515.
If David Snowball wants to arrange a special Zoom call with MFO participants, we can schedule an hour of Q&A on CrossingBridge and our activities.
As for the AlphaCentric announcement, should CrossingBridge be successfully appointed as sub-advisor, we intend to apply our investment process for the specific asset/industry class as similar fashion as all our offerings. Further, we would not take on a client or Fund if we thought it would be dilutive to existing clients or not meet our competency.
Catalyst, Rational, AlphaCentric all seem like asset gathers. Really high er. Front loads. 12b-1 fees. Multiple share classes.
I came across Szilagyi back in 2017 profiling AlphaCentric Income fund. I absolutely loved Tom Miner and the folks at subadvisor Garrison Point, but I was skeptical of their association with Szilagyi's organization.
An excerpt:
Focusing on IOFIX, the adviser pays 0.33% “other” (mostly administrative and servicing). The remaining 1.16% “management fee” (after a 0.01% acquired fund fee) is then split between AlphaCentric and Garrison Point, or 0.58% each. Since another Jerry Szilagyi company “MFund Services LLC,” also gets paid to manage the overall trust, Szilagyi’s firms appear to receive more fee from the fund than GPC does.
Interestingly, AlphaCentric is listed along with Eventide, Pinnacle and Advisory Research as a strategic partner in a firm called Multi-Funds, which describes itself as “A Premier Marketing, Consulting and Distribution Firm.” While this channel may indeed have helped bring attention to IOFIX, allowing the sub-adviser to focus on its strategy and portfolio management … what it loves to do, Multi-Funds hasn’t helped other funds in the AlphaCentric family achieve anywhere near the assets attracted by IOFIX.
Jerry Szilagyi also runs Catalyst Funds, a collection of “Intelligent Alternatives … We understood that the market did not need another traditional family of mutual funds … we endeavor to offer unique investment products to meet the needs of discerning financial advisers and their clients … specialized strategies seeking to produce income and equity-oriented returns while attempting to limit risk and volatility.” There are 28 Catalyst Funds comprising $6.2B in AUM. Average age just under 5 years. Most come in three classes, including those imposing 4.75% front-loads and 12b-1 fees. Average fees: 1.76% (oldest share class, 2.01% all share classes).
When you stood-up CrossingBridge, it just seemed like a horse of a different color.
You're always 10 steps ahead of everybody else in the room, which puts me 20 steps back and surely missing something.
Or, simply being a Pollyanna.
But Szilagyi's brand also ran into regulatory issues, granted he's in good company, but still:
SEC Charges Portfolio Manager and Advisory Firm with Misrepresenting Risk in Mutual Fund
The Securities and Exchange Commission today announced charges against a New York-based investment adviser for misleading investors about the management of risk in a mutual fund. Catalyst Capital Advisors LLC (CCA) and its President and Chief Executive Officer, Jerry Szilagyi, agreed to pay a combined $10.5 million to settle the charges. The SEC also filed a complaint in federal district court in Madison, Wisconsin, against Senior Portfolio Manager, Edward Walczak, for fraudulently misrepresenting how he would manage risk for the fund.
https://www.sec.gov/newsroom/press-releases/2020-21
Fund That Lost $700 Million on Bearish Bets Fined for Misleading Investors
Catalyst Capital Advisors and CEO Jerry Szilagyi settled regulatory probes, will pay $10.5 million
A mutual-fund manager that lost 20% with wrong-way bets against the stock market agreed to pay $10.5 million to settle regulatory claims that it misled investors about its procedures for limiting losses.
Catalyst Capital Advisors LLC and its chief executive, Jerry Szilagyi, settled the regulatory probes Monday without admitting or denying wrongdoing. The Securities and Exchange Commission and the Commodity Futures Trading Commission also both filed civil fraud lawsuits against Edward Walczak, the portfolio manager who ran the Catalyst Hedged Futures Strategy Fund.
https://www.wsj.com/articles/fund-that-lost-700-million-on-bearish-bets-fined-for-misleading-investors-11580167076
I'll post more later on the Catalyst, Rational, and AlphaCentric families.
Four funds. Four Great Owls. I know of no other family that can make that claim.
All four have beaten their category peers since launch. So, 100% on our family score card metric ... only a handful of families can claim that, like Dodge & Cox.
Total AUM = $1.3B.
Average er = 0.89%.
All no load.
All no 12b-1 fee.
Min initial buy: $5K.
Extremely impressive accomplishment.
Six funds. Zero Great Owls. Two Three Alarm funds.
Only two of six have beaten their peers since launch.
Total AUM = $0.6B.
Average er, oldest share class = 1.63%.
Average er, all share class = 2.05%.
Max er, 3.02%.
Min er, 1.40%.
Each fund has three share classes.
12 of 18 have 12b-1 fees as high as 1.00%.
6 of 18 have front loads as high as 5.75%.
With fees like these, it's not hard to understand why this family underperforms.
How will CrossingBridge fare in this environment?
When I googled his name , it show Jan. 2020,filed . Feb. 2022 judgement granted.
Thanks , just filling in a few missing blanks.
Derf
Hmmm, just a guess ... 0.91% * $40.7M = $370,370 per year.
Not bad!
Now, I see the difficulty in merging them is the ER. The higher AUM RSIIX is at 0.98% while CBRDX is at 0.91%.
Yahoo Finance, ENDI https://finance.yahoo.com/quote/ENDI/
Website https://www.endicorp.com/
Edgar/SEC 10-K, ENDI https://www.sec.gov/ix?doc=/Archives/edgar/data/1908984/000149315224012465/form10-k.htm
"ITEM 1. BUSINESS
Overview
During the year ended December 31, 2023, ENDI Corp. operated through the following four reportable segments:
● CrossingBridge Operations - this segment includes revenue and expenses derived from the Company’s investment advisory and sub-advisory services offered through various SEC registered mutual funds and an exchange-traded fund (“ETF”) through CrossingBridge Advisors, LLC;
● Willow Oak Operations - this segment includes revenue and expenses derived from the Company’s various joint ventures, service offerings, and initiatives undertaken in the asset management industry through Willow Oak Asset Management, LLC and its subsidiaries;
● Internet Operations - this segment includes revenue and expenses related to the Company’s sale of internet access, e-mail and hosting, storage, and other ancillary services through Sitestar.net, Inc.; and
● Other Operations - this segment includes any revenue and expenses from the Company’s nonrecurring or one-time strategic funding or similar activity that is not considered to be one of the Company’s primary lines of business, and any revenue or expenses derived from the Company’s corporate office operations, as well as expenses related to public company reporting, the oversight of subsidiaries, and other items that affect the overall Company."