Name
As of 03/27/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
Vitals
YTD Return
0.8%
1 yr return
5.9%
3 Yr Avg Return
2.3%
5 Yr Avg Return
3.5%
Net Assets
$141 M
Holdings in Top 10
35.7%
52 WEEK LOW AND HIGH
Expenses
OPERATING FEES
Expense Ratio 1.38%
SALES FEES
Front Load N/A
Deferred Load N/A
TRADING FEES
Turnover 147.00%
Redemption Fee N/A
Min Investment
Standard (Taxable)
$100,000
IRA
$100,000
Fund Classification
Fund Type
Open End Mutual Fund
Name
As of 03/27/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
ACFIX - Profile
Distributions
- YTD Total Return 0.8%
- 3 Yr Annualized Total Return 2.3%
- 5 Yr Annualized Total Return 3.5%
- Capital Gain Distribution Frequency N/A
- Net Income Ratio 2.44%
- Dividend Yield 0.0%
- Dividend Distribution Frequency Monthly
Fund Details
-
Legal NameWATER ISLAND CREDIT OPPORTUNITIES FUND
-
Fund Family NameWater Island Capital-Advised Funds
-
Inception DateOct 01, 2012
-
Shares OutstandingN/A
-
Share ClassI
-
CurrencyUSD
-
Domiciled CountryUS
-
ManagerGregory Loprete
Fund Description
The Fund invests primarily in a portfolio of debt securities including corporate bonds and debentures (including high yield bonds commonly known as "junk bonds"), bank loans, convertible and preferred securities, credit default swaps and other debt instruments and derivatives that the Fund's investment adviser (the "Adviser") believes have debt-like characteristics. The Fund invests in both U.S. and foreign debt securities. The principal types of derivatives in which the Fund may invest are credit default swaps, interest rate swaps, equity swaps, futures, and options.
The Fund invests primarily in debt securities whose returns the Adviser believes will be more correlated with the outcome of specific catalysts or events rather than overall market direction. These catalysts and events include mergers, acquisitions, debt maturities, refinancings, regulatory changes, recapitalizations, reorganizations, restructurings, and other special situations. The Fund also uses a relative value approach and may express positive views on specific issuers by taking long positions in cash bonds and/or derivatives and negative views on specific issuers by taking short positions in cash bonds and/or derivatives. The Fund uses fundamental research to identify mispricings or inefficiencies in these situations and assesses their potential impact on security prices.
The Fund may engage in short-term trading strategies and may engage in short sales and invest in derivatives. The principal short-term trading strategies may at times include convertible arbitrage, merger arbitrage, and capital structure arbitrage, which are discussed below. The Fund may seek to mitigate the risk of volatility (the appreciation or depreciation of the value of a security over a period of time) and duration (the impact of interest rate changes on fixed-income securities) by engaging in short sales and/or investing in derivatives, including credit default swaps, interest rate swaps, futures, and options. The Fund may purchase or sell short equity securities or derivatives as part of a hedging strategy or hold equity positions or other assets that the Fund receives as part of a reorganization process. The Fund may, but is not required to, seek to reduce currency risk by hedging part or all of its exposure to various foreign currencies. Furthermore, the Fund may invest in exchange traded funds ("ETFs").
The Fund is not limited with respect to its portfolio maturity or duration. The Fund may invest in debt securities without regard to their credit ratings, including securities that are unrated, and in debt securities with a wide variety of terms that may vary from security to security, including but not limited to optional and mandatory prepayment provisions, fixed, variable, semi-variable, and resettable interest rates and conversion options, as well as various combinations of these terms. The Fund may hold a significant portion of its assets in cash, money market or similar cash management funds, or short-term investments for defensive purposes, to preserve the Fund's ability to capitalize quickly on new market opportunities, or for other reasons, such as because the Adviser has determined to obtain investment exposure through derivative instruments instead of direct cash investments. The Fund may also hold a significant amount of cash or short-term investments immediately after a period in which several transactions in which the Fund has invested close in a similar timeframe, yet before capital is redeployed to other opportunities.
Merger Arbitrage: Merger arbitrage is a highly specialized investment approach designed to profit from the successful completion of mergers, takeovers, tender offers, leveraged buyouts, spin-offs, liquidations, and other corporate reorganizations. The most common merger arbitrage activity, and the approach the Fund generally uses, involves purchasing debt securities of an announced acquisition target company at a discount to their expected value upon completion of the acquisition. The Fund may engage in selling securities short when the terms of a proposed acquisition call for the exchange of common stock and/or other securities. In such a case, the securities of the company to be acquired may be purchased and, at approximately the same time, an amount of the acquiring company's common stock and/or other securities as per the terms of the transaction may be sold short.
Convertible Arbitrage: Convertible arbitrage is a specialized strategy that seeks to profit from pricing inefficiencies between a firm's convertible securities and its underlying equity. The most common convertible arbitrage approach, and the strategy the Fund generally uses, matches a long position in the convertible security with a short position in the underlying common stock. The Fund seeks to purchase convertible securities at discounts to their expected future values and sell short shares of the underlying common stock in order to mitigate equity market movements. As stock prices rise and the convertible security becomes more equity sensitive, the Fund may sell short additional common shares in order to maintain the relationship between the convertible and the underlying common stock. As stock prices fall, the Fund will typically buy back a portion of shares which it had sold short. Positions are typically designed to earn income from coupon or dividend payments and net gains from the purchase and sale of the convertible securities' positions and the underlying common stocks.
Capital Structure Arbitrage: Capital structure arbitrage seeks to profit from relative pricing discrepancies between related debt and/or equity securities. For example, when the Fund believes that unsecured securities are overvalued in relation to senior secured securities, the Fund may purchase a senior secured security of an issuer and sell short an unsecured security of the same issuer. In this example the trade would be profitable if credit quality spreads widened or if the issuer went bankrupt and the recovery rate for the senior debt was higher than anticipated. It is expected that, over time, the relative mispricing of the securities may decline, at which point the position will be liquidated.
ACFIX - Performance
Return Ranking - Trailing
Period | ACFIX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 0.8% | -6.5% | 5.7% | 62.60% |
1 Yr | 5.9% | -9.3% | 24.0% | 63.99% |
3 Yr | 2.3%* | -16.7% | 18.1% | 14.15% |
5 Yr | 3.5%* | -13.0% | 15.2% | 13.32% |
10 Yr | 2.7%* | -13.4% | 6.7% | 38.62% |
* Annualized
Return Ranking - Calendar
Period | ACFIX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | 2.3% | -12.0% | 15.7% | 60.96% |
2022 | -6.0% | -31.8% | 18.4% | 13.29% |
2021 | 0.6% | -26.6% | 25.7% | 14.71% |
2020 | 3.5% | -49.2% | 18.7% | 30.57% |
2019 | 2.0% | -35.1% | 15.3% | 79.81% |
Total Return Ranking - Trailing
Period | ACFIX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 0.8% | -6.5% | 5.7% | 62.60% |
1 Yr | 5.9% | -9.3% | 24.0% | 63.99% |
3 Yr | 2.3%* | -16.7% | 18.1% | 14.15% |
5 Yr | 3.5%* | -13.0% | 15.2% | 13.32% |
10 Yr | 2.7%* | -13.4% | 6.7% | 38.62% |
* Annualized
Total Return Ranking - Calendar
Period | ACFIX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | 7.9% | -7.0% | 22.2% | 50.62% |
2022 | -2.6% | -31.8% | 21.1% | 13.29% |
2021 | 3.3% | -13.5% | 49.9% | 25.00% |
2020 | 6.8% | -28.6% | 24.1% | 36.57% |
2019 | 5.7% | -4.8% | 19.1% | 80.57% |
NAV & Total Return History
ACFIX - Holdings
Concentration Analysis
ACFIX | Category Low | Category High | ACFIX % Rank | |
---|---|---|---|---|
Net Assets | 141 M | 2.32 M | 127 B | 79.53% |
Number of Holdings | 125 | 2 | 10577 | 77.69% |
Net Assets in Top 10 | 44.4 M | -1.57 B | 65.8 B | 76.93% |
Weighting of Top 10 | 35.73% | 0.7% | 170.6% | 38.58% |
Top 10 Holdings
- Getty Images Inc 4.43%
- PDC Energy Inc 4.15%
- Morgan Stanley Institutional Liquidity Funds - Government Portfolio 3.91%
- State Street Institutional US Government Money Market Fund 3.91%
- American Tower Corp 3.86%
- SeaWorld Parks Entertainment Inc 3.26%
- Caesars Entertainment Inc 3.24%
- Triton Container International Ltd 3.14%
- Splunk Inc 3.00%
- Chobani LLC / Chobani Finance Corp Inc 2.83%
Asset Allocation
Weighting | Return Low | Return High | ACFIX % Rank | |
---|---|---|---|---|
Bonds | 91.34% | -150.81% | 203.29% | 41.73% |
Convertible Bonds | 33.50% | 0.00% | 33.50% | 0.47% |
Cash | 7.82% | -94.66% | 258.91% | 25.19% |
Other | 0.05% | -72.32% | 100.00% | 70.11% |
Preferred Stocks | 0.00% | 0.00% | 30.46% | 51.14% |
Stocks | -1.60% | -1.60% | 99.88% | 100.00% |
Bond Sector Breakdown
Weighting | Return Low | Return High | ACFIX % Rank | |
---|---|---|---|---|
Corporate | 85.93% | 0.00% | 96.66% | 2.50% |
Cash & Equivalents | 7.82% | 0.00% | 88.14% | 22.07% |
Derivative | 0.05% | -72.32% | 37.37% | 35.77% |
Securitized | 0.00% | 0.00% | 99.65% | 92.80% |
Municipal | 0.00% | 0.00% | 54.26% | 45.38% |
Government | 0.00% | 0.00% | 99.43% | 87.95% |
Bond Geographic Breakdown
Weighting | Return Low | Return High | ACFIX % Rank | |
---|---|---|---|---|
US | 91.01% | -151.11% | 203.29% | 27.92% |
Non US | 0.33% | 0.00% | 67.77% | 63.58% |
ACFIX - Expenses
Operational Fees
ACFIX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Expense Ratio | 1.38% | 0.01% | 20.67% | 41.91% |
Management Fee | 0.95% | 0.00% | 2.29% | 80.57% |
12b-1 Fee | N/A | 0.00% | 1.00% | N/A |
Administrative Fee | N/A | 0.00% | 0.70% | 11.14% |
Sales Fees
ACFIX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Front Load | N/A | 0.00% | 5.75% | 82.79% |
Deferred Load | N/A | 1.00% | 5.00% | N/A |
Trading Fees
ACFIX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Max Redemption Fee | N/A | 0.50% | 2.00% | 1.05% |
Related Fees
Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.
ACFIX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Turnover | 147.00% | 0.00% | 632.00% | 82.97% |
ACFIX - Distributions
Dividend Yield Analysis
ACFIX | Category Low | Category High | ACFIX % Rank | |
---|---|---|---|---|
Dividend Yield | 0.00% | 0.00% | 18.15% | 49.92% |
Dividend Distribution Analysis
ACFIX | Category Low | Category High | Category Mod | |
---|---|---|---|---|
Dividend Distribution Frequency | Monthly | Annually | Monthly | Quarterly |
Net Income Ratio Analysis
ACFIX | Category Low | Category High | ACFIX % Rank | |
---|---|---|---|---|
Net Income Ratio | 2.44% | -1.55% | 11.51% | 67.95% |
Capital Gain Distribution Analysis
ACFIX | Category Low | Category High | Capital Mode | |
---|---|---|---|---|
Capital Gain Distribution Frequency | Annually | Annually | Annually |
Distributions History
Date | Amount | Type |
---|---|---|
Mar 01, 2024 | $0.041 | OrdinaryDividend |
Feb 01, 2024 | $0.040 | DailyAccrualFund |
Jan 02, 2024 | $0.043 | DailyAccrualFund |
Dec 01, 2023 | $0.046 | DailyAccrualFund |
Nov 01, 2023 | $0.040 | DailyAccrualFund |
Oct 02, 2023 | $0.039 | DailyAccrualFund |
Sep 01, 2023 | $0.037 | DailyAccrualFund |
Aug 01, 2023 | $0.037 | DailyAccrualFund |
Jul 03, 2023 | $0.037 | DailyAccrualFund |
Jun 01, 2023 | $0.037 | DailyAccrualFund |
May 01, 2023 | $0.038 | DailyAccrualFund |
Apr 03, 2023 | $0.036 | DailyAccrualFund |
Mar 01, 2023 | $0.038 | DailyAccrualFund |
Feb 01, 2023 | $0.038 | DailyAccrualFund |
Jan 03, 2023 | $0.042 | DailyAccrualFund |
Dec 01, 2022 | $0.043 | DailyAccrualFund |
Nov 01, 2022 | $0.031 | DailyAccrualFund |
Oct 03, 2022 | $0.026 | DailyAccrualFund |
Sep 01, 2022 | $0.032 | DailyAccrualFund |
Aug 01, 2022 | $0.027 | DailyAccrualFund |
Jul 01, 2022 | $0.026 | DailyAccrualFund |
Jun 01, 2022 | $0.024 | DailyAccrualFund |
May 02, 2022 | $0.023 | DailyAccrualFund |
Apr 01, 2022 | $0.025 | DailyAccrualFund |
Mar 01, 2022 | $0.020 | DailyAccrualFund |
Feb 01, 2022 | $0.017 | DailyAccrualFund |
Jan 03, 2022 | $0.014 | DailyAccrualFund |
Dec 01, 2021 | $0.028 | DailyAccrualFund |
Nov 01, 2021 | $0.025 | DailyAccrualFund |
Oct 01, 2021 | $0.025 | DailyAccrualFund |
Sep 01, 2021 | $0.028 | DailyAccrualFund |
Aug 02, 2021 | $0.027 | DailyAccrualFund |
Jul 01, 2021 | $0.027 | DailyAccrualFund |
Jun 01, 2021 | $0.017 | DailyAccrualFund |
May 03, 2021 | $0.016 | DailyAccrualFund |
Apr 01, 2021 | $0.012 | DailyAccrualFund |
Mar 01, 2021 | $0.024 | DailyAccrualFund |
Feb 01, 2021 | $0.024 | DailyAccrualFund |
Dec 01, 2020 | $0.023 | DailyAccrualFund |
Nov 02, 2020 | $0.021 | DailyAccrualFund |
Oct 01, 2020 | $0.034 | DailyAccrualFund |
Sep 01, 2020 | $0.027 | DailyAccrualFund |
Aug 03, 2020 | $0.022 | DailyAccrualFund |
Jul 01, 2020 | $0.030 | DailyAccrualFund |
Jun 01, 2020 | $0.027 | DailyAccrualFund |
May 01, 2020 | $0.021 | DailyAccrualFund |
Apr 01, 2020 | $0.013 | DailyAccrualFund |
Mar 02, 2020 | $0.025 | DailyAccrualFund |
Feb 03, 2020 | $0.029 | DailyAccrualFund |
Jan 02, 2020 | $0.032 | DailyAccrualFund |
Dec 02, 2019 | $0.030 | DailyAccrualFund |
Nov 01, 2019 | $0.029 | DailyAccrualFund |
Oct 01, 2019 | $0.026 | DailyAccrualFund |
Sep 03, 2019 | $0.028 | DailyAccrualFund |
Aug 01, 2019 | $0.030 | DailyAccrualFund |
Jun 03, 2019 | $0.027 | DailyAccrualFund |
May 01, 2019 | $0.027 | DailyAccrualFund |
Apr 01, 2019 | $0.026 | DailyAccrualFund |
Mar 01, 2019 | $0.028 | DailyAccrualFund |
Feb 01, 2019 | $0.032 | DailyAccrualFund |
Jan 02, 2019 | $0.028 | DailyAccrualFund |
Dec 03, 2018 | $0.030 | DailyAccrualFund |
Nov 01, 2018 | $0.032 | DailyAccrualFund |
Sep 04, 2018 | $0.034 | DailyAccrualFund |
Aug 01, 2018 | $0.021 | DailyAccrualFund |
Jul 02, 2018 | $0.019 | DailyAccrualFund |
Jun 01, 2018 | $0.013 | DailyAccrualFund |
May 01, 2018 | $0.020 | DailyAccrualFund |
Apr 02, 2018 | $0.013 | DailyAccrualFund |
Mar 01, 2018 | $0.017 | DailyAccrualFund |
Feb 01, 2018 | $0.017 | DailyAccrualFund |
Jan 02, 2018 | $0.014 | DailyAccrualFund |
Dec 15, 2017 | $0.048 | DailyAccrualFund |
Dec 01, 2017 | $0.012 | DailyAccrualFund |
Nov 01, 2017 | $0.027 | DailyAccrualFund |
Oct 02, 2017 | $0.023 | DailyAccrualFund |
Sep 01, 2017 | $0.024 | DailyAccrualFund |
Aug 01, 2017 | $0.019 | DailyAccrualFund |
Jul 03, 2017 | $0.017 | DailyAccrualFund |
May 31, 2017 | $0.025 | DailyAccrualFund |
Apr 28, 2017 | $0.034 | DailyAccrualFund |
Mar 31, 2017 | $0.012 | DailyAccrualFund |
Mar 17, 2017 | $0.033 | OrdinaryDividend |
Dec 16, 2016 | $0.096 | OrdinaryDividend |
Sep 16, 2016 | $0.042 | OrdinaryDividend |
Jun 17, 2016 | $0.046 | OrdinaryDividend |
Mar 18, 2016 | $0.049 | OrdinaryDividend |
Dec 17, 2015 | $0.094 | OrdinaryDividend |
Sep 18, 2015 | $0.058 | OrdinaryDividend |
Jun 19, 2015 | $0.085 | OrdinaryDividend |
Mar 20, 2015 | $0.039 | OrdinaryDividend |
Dec 10, 2014 | $0.100 | OrdinaryDividend |
Sep 19, 2014 | $0.070 | OrdinaryDividend |
Jun 20, 2014 | $0.127 | OrdinaryDividend |
Mar 20, 2014 | $0.060 | OrdinaryDividend |
Dec 19, 2013 | $0.082 | OrdinaryDividend |
Sep 19, 2013 | $0.098 | OrdinaryDividend |
Jun 19, 2013 | $0.174 | OrdinaryDividend |
Mar 20, 2013 | $0.054 | OrdinaryDividend |
Dec 19, 2012 | $0.034 | OrdinaryDividend |
ACFIX - Fund Manager Analysis
Managers
Gregory Loprete
Start Date
Tenure
Tenure Rank
Oct 01, 2012
9.67
9.7%
Gregory(Gregg) Loprete joined Water Island Capital in 2009 and currently serves as a portfolio manager. He is primarily responsible for management of the firm’s convertible and fixed income investments. Prior to joining Water Island Capital, Mr. Loprete worked at Keefe, Bruyette & Woods as a Convertible and Preferred Trader where he evaluated, implemented and managed convertible and capital structure investments. From 2007-2008, Mr. Loprete was a Director in the Convertible Arbitrage Group at Ramius Capital Group, LLC. At Ramius Mr. Loprete also served as co-manager and trader. From 2003 to 2007, Mr. Loprete was a Senior Convertible Analyst and Convertible Banking Liaison at SG Cowen & Company. Mr. Loprete received a Masters of Business Administration degree in Finance from New York University in 1993 and a Bachelors degree from the University of Delaware in 1987 — with a major in English Literature with a minor in Economics.
John Orrico
Start Date
Tenure
Tenure Rank
Jan 31, 2018
4.33
4.3%
Mr. Orrico founded Water Island Capital, the advisor to The Arbitrage Funds, in 2000. He currently serves as Chairman of The Arbitrage Funds series trust and Chief Investment Officer of the firm. Prior to founding Water Island Capital, Mr. Orrico directed arbitrage, special situations, and distressed hedge fund portfolios at Lindemann Capital, which he joined in 1999, in conjunction with starting the organizational process for the Arbitrage Fund. Prior to joining Lindemann Capital, Mr. Orrico joined Gruss & Co in 1994, focusing on merger arbitrage and special situations, and became Senior Arbitrage Analyst in 1996. Mr. Orrico has worked in the securities industry since joining Morgan Stanley in 1982, beginning in corporate finance, with additional experience in institutional equity trading, equity research analysis and portfolio management. Mr. Orrico received a BA from Georgetown University.
Tenure Analysis
Category Low | Category High | Category Average | Category Mode |
---|---|---|---|
0.08 | 28.19 | 5.72 | 3.19 |