MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Categories

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Morningstar, Day One: RiverPark Strategic Income in registration

David_Snowball
edited June 2013 in Fund Discussions
David Sherman of Cohanzick, manager of RiverPark Short-Term High Yield (RPHYX), is set to manage a new fund. By all appearances it will be much more aggressive and flexible that RPHYX but will still be an exceptionally cautious take on risky asset classes.

Per the SEC filing: "RiverPark Strategic Income seeks high current income and capital appreciation consistent with the preservation of capital by investing in both investment grade and non-investment grade debt, preferred stock, convertible bonds, bank loans, high yield bonds and income producing equities." But the bonds must be Money-Good; that is, in the worst case, they can be held to maturity and the issuer will be in a position to redeem them at full value. Up to 35% of the fund might be foreign fixed-income and up to 35% might be dividend paying equities. $1000 minimum, 1.25% opening e.r.

Comments

  • Old_JoeOld_Joe
    Interesting... let's watch that one.

    Aside: Sold your soul for a couple of warm cookies, did you? Hell, even Faust made a better deal than that!
  • CharlesCharles
    I like the fund manager. Do not like that RiverPark wants $1M for discount on ER. Aston does same thing.
  • Old_JoeOld_Joe
    Reply to @Charles: Maybe we need to pool our assets- open an "MFO" account! I nominate you to keep track of the whole thing, though.:-)
  • CharlesCharles
    Reply to @Old_Joe: Ha! As treasurer? Never thought I'd see the day...and still don't. I bet I'd make a pretty good caddy for the MFO Golf Club. A better fit to my investment skills.
  • andrei
    SEC link to this fund:

    http://www.sec.gov/Archives/edgar/data/1494928/000139834413002852/fp0007459_485apos.htm
  • AndyJ
    Reply to @Charles: Isn't one of the Ten Commandments "Never volunteer to be treasurer of anything"? Well, unless Edmund Dantes asks you to watch his chest o' jewels ...
  • David_Snowball
    Reply to @Old_Joe: Rented!
  • InvestorInvestor
    Close one fund to start another. RPHYX is closing on June 21st.
  • David_Snowball
    Reply to @Investor: Hmmm ... not exactly.

    Mr. Sherman has been clear from Day One that RPHYX is a limited-capacity strategy. Depending on market condition and whether we was willing to add strategies to the portfolio, he had $600M - $1B of capacity and wanted to close the strategy early enough to maintain room for growth after closure. I've reported that intention several times and warned, a couple months ago, that he was approaching the capacity limit. I even believe he discussed it on our conference call, but I'd have to go back and listen again to be sure.

    Sherman has also been reflecting on other strategies for at least a year and a half. Short-term high yield is a small part of what Cohanzick does in its private client accounts and David has been fairly clear that he was willing to look at other value-aded strategies - that is, places where Cohanzick seems to have a competitive edge - for a possible second fund.

    That said, it's entirely likely that the timing of the announcements is not coincidental. (You'd have to be dim and credulous to believe that and I'm not both.)

    David
Sign In or Register to comment.