Huntington, NY - December 31, 2013 – Catalyst Funds today announced the launch of the Catalyst/EquityCompass Buyback Strategy Fund (BUYAX). The Fund, which is the first of its kind, is based on an event-driven investment strategy by EquityCompass Strategies, a Baltimore based Investment Adviser, This strategy seeks to capture the potential short-term excess returns associated with public share buyback announcements and invests primarily in U.S. equities.
"We are thrilled to announce the launch of the Catalyst/EquityCompass Buyback Strategy Fund," said Jerry Szilagyi, chief executive officer of Catalyst Funds. "EquityCompass' quantitative-based approach to investing and their expertise and track record in investing in share buybacks is a great match for Catalyst's commitment to developing best-in-class alternative mutual fund products."
The driving strategy behind BUYAX’s investments are based on the premise that the stocks of companies that announce share buybacks can perform well on the short-term because it may signal to the market that management believes the company’s shares are undervalued. Investment decisions will be based on several factors, including: size of the buyback announcement, length of time since the announcement, price reaction to the announcement and volume of the underlying shares.
“Catalyst has a distinctive and differentiated focus on alternative, niche strategies,” commented Richard Cripps, chief investment officer, EquityCompass. “We are pleased to partner with them on this fund.”
Michael Schoonover, portfolio manager at Catalyst Funds, will serve as the Fund's portfolio manager, with Timothy M. McCann, senior portfolio manager, EquityCompass Strategies, as the Fund's portfolio management consultant. BUYAX is an open-end mutual fund.
The Catalyst/EquityCompass Buyback Strategy Fund (BUYAX) can be purchased through investment advisors, online at www.CatalystMF.com or by calling 866-447-4228. There is no guarantee that any investment strategy will achieve its objectives, generate profits or avoid losses.
About Catalyst Funds
Catalyst Funds currently offers 16 distinctive funds that provide various strategies with the goal of producing income- and equity-oriented returns while controlling risk and volatility. We offer these exclusive strategies through a team of in-house portfolio managers and boutique institutional investment management partners. At Catalyst, we strive to provide innovative strategies to support financial advisors and their clients in meeting the investment challenges of an ever changing global market environment.
Choice Financial Partners Inc., d/b/a EquityCompass Strategies (“EquityCompass”) is a registered investment adviser and a wholly owned subsidiary of Stifel Financial Corp. (NYSE: SF). EquityCompass offers a broad range of portfolio strategies based on its research-driven, rules-based investment process, which merges traditional investment theory with quantitative techniques. As of November 30, 2013, EquityCompass provided portfolio strategies with respect to assets of approximately $1.6 billion.
Investing in the Fund carries certain risks. The value of the Fund may decrease in response to the activities and financial prospects of an individual security in the Fund’s portfolio. The Fund is non-diversified and may invest a greater percentage of its assets in a particular issue and may own fewer securities than other mutual funds. The performance of the Fund may be subject to substantial short-term changes. These factors may affect the value of your investment.
Please consider the Fund’s investment objectives, risks, and charges carefully before investing. This and other important information about the Catalyst Funds can be found in the Fund’s current prospectus, which may be obtained by calling your Financial Advisor or shareholder services at 866-447-4228. Please read the prospectus carefully before investing. The Catalyst Funds are distributed by Northern Lights Distributors, LLC, member FINRA.