AlphaCentric Premium Opportunity Fund Class I (HMXIX)

Overview

The fund, under the guidance of Mount Lucas Management LP as the investment sub-advisor, aims to meet its investment objective through the implementation of two main strategies: the Traditional Component Strategy and the Alternative Component Strategy. This fund operates with the flexibility to invest across a broad spectrum, without limitations on capitalization, geographic region, credit quality, or the maturity of debt instruments. It stands out due to its willingness to invest in below investment-grade debt securities, also known as junk bonds, and even in securities that are currently in default. One noteworthy aspect of this fund is its non-diversified status, allowing it to potentially concentrate its investments more than a diversified fund might.

Products and Services

• Traditional Component Strategy

  This strategy focuses on investing in a mix of assets that typically includes stocks, bonds, and cash. The objective is to provide a balanced approach to achieving the fund's investment goals, leveraging the potential growth of stocks and the stability of bonds and cash. This traditional approach is designed for investors seeking a combination of growth, income, and preservation of capital.

• Alternative Component Strategy

  Contrasting the Traditional Component Strategy, the Alternative Component Strategy looks to diversify the fund's investments beyond conventional markets. This may include investments in assets such as real estate, commodities, and other non-traditional assets. The goal here is to offer investors exposure to different markets that may behave independently from traditional stocks and bonds, potentially providing a hedge against market volatility and enhancing returns.

• High-Yield Investments

  As part of its broad investment mandate, the fund is open to investing in below investment-grade debt instruments, commonly referred to as 'junk bonds'. These high-yield investments often offer the potential for higher returns in comparison to investment-grade securities at the expense of higher risk, including the risk of default. This strategy is geared towards investors who are willing to take on a higher level of risk for the chance of greater returns.

• Investment Flexibility

  The fund's investment strategy is characterized by its lack of restrictions regarding the capitalization of investments, geographical regions, credit quality, and debt maturity. This flexibility allows the Sub-Advisor to pursue opportunities across a broad spectrum of securities worldwide, adapting to changing market conditions and leveraging opportunities that arise, regardless of the market segment or economic cycle.