The Fund is a single-manager, multi-strategy fund, which uses a relative value approach to seek non-directional market risks with asymmetric outcomes and predominantly uses liquid fixed income markets.
First Principles Capital Management, LLC (FPCM), serves as the Fund's subadvisor and is responsible for the day-to-day management of the portfolio, and is subject to the general oversight of Context Advisers II, L.P., which serves as Investment Adviser. FPCM is a Registered Investment Adviser with $8 billion in assets under management as of December 31, 2015, and is a wholly-owned subsidiary of American International Group, Inc. (AIG).
Mark G. Alexandridis, Chief Investment Officer of FPCM, said, "We are pleased to see the early adoption of the Context Macro Opportunities Fund, which provides retail and institutional investors access to the same disciplined approach as our private funds. Our approach uses a combination of alternative strategies to pursue a positive asymmetric return profile. To achieve this goal, we focus on three elements that generate return: current income from high-conviction, short duration exposures; tactical relative value exposures that seek incremental return; and structural positions that provide low or negative correlation to risk assets designed to generate asymmetric returns in sustained recessionary scenarios."
Over the next 12 to 18 months, Context Asset Management is looking to possibly expand its liquid alternative mutual fund platform and create as many as three new products subadvised by different hedge fund managers. Using the financial and operating experience of its parent company, Context Asset Management will seek to identify managers with strategies that meet its proven investment criteria.
Mr. Culbertson continued, "In the current environment, we continue to favor alternative strategies with lower correlation to risk assets and offer potential for asymmetric returns. With global growth slowing and unprecedented level of central bank intervention in financial markets, we believe that systematic and discretionary global macro, volatility strategies and some forms of statistical arbitrage may have a much better chance of outperforming long short equity and event-driven strategies."
About Context Asset Management
Context Asset Management is an innovative provider of alternative mutual funds for retail and institutional clients. Our single-strategy alternative mutual fund combines the low correlation of hedge fund strategies with the transparency and liquidity of traditional mutual funds. Context's alternative mutual fund offerings may play an important role in helping investors focus on the financial future they desire. The Context Macro Opportunities Fund manages $101.2 million in assets as of August 8, 2016. To learn more, please visit www.contextam.com.
About Context Capital Partners
Context Capital Partners, LP is an alternative specialist company that allocates its capital to talented investment managers and whose subsidiaries offer a diverse range of investment strategies, including hedge funds, liquid alternative mutual funds, and private equity funds. Through its unique approach to evaluating and overseeing highly-differentiated and specialized funds, Context seeks to identify opportunities in both liquid and illiquid markets and serves as a full financial and operational partner for its subsidiaries. Since inception, Context led seed deals totaling more than $400 million in aggregate. The firm's subsidiary businesses include Context Asset Management, Context Jensen Partners, Context Summits, Context Asset Management, Context BH Capital Management, Context Liberty Bell, Context Jensen Partners, and Adams Business Credit.
Context Capital Partners is headquartered in Bala Cynwyd, PA. For more information about Context Capital Partners, visit www.contextcp.com.
212.279.3115 ext. 252
Before investing you should carefully consider the Context Macro Opportunities Fund's investment objectives, risks, charges and expenses. This and other information about the Fund is in the prospectus, a copy of which may be obtained by calling 1-844-511-9653. Please read the prospectus carefully before you invest.
Diversification does not assure a profit or protect against a loss in a declining market.
An investment in the Fund is subject to risk, including the possible loss of principal amount invested. Risks are detail in the prospectus and include, but are not limited to, the following: Asset-backed and mortgage-backed securities are subject to risk of prepayment. Credit default swap agreements involve special risks because they may be difficult to value, are highly susceptible to liquidity and credit risk, and generally pay a return only in the event of an actual default by the issuer of the underlying. The prices of futures can be highly volatile, using futures can lower total return and the potential loss from futures can exceed the Fund's initial investment. The Fund's derivative investments have risks, including the imperfect correlation between the value of such instruments and the underlying assets of the Fund. The risk of investing in foreign companies involves certain risks not generally associated with investments in the securities of U.S. companies. In addition, individual international country economies may differ favorably or unfavorably from the U.S. economy in such respects as growth of gross domestic product, rates of inflation, capital reinvestment, resources, self-sufficiency and balance of payments position. Emerging markets investments are subject to greater political and economic uncertainties as well as a relative lack of information about companies in such markets.
Hedging is a strategy in which the Fund uses a derivative to offset the risks associated with other Fund holdings. There can be no assurance that the Fund's hedging strategy will reduce risk or that hedging transactions will be either available or cost effective. The use of leverage has the risk of capital losses that exceed the net assets of the Fund. Leverage may involve the creation of a liability that requires the Fund to pay interest. The Fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. In addition, market conditions may cause the Fund to experience temporary mark-to-market losses, especially in less liquid positions, even in the absence of any selling of investments by the Fund. The Fund is "non-diversified", investing in fewer securities at any one time than a diversified fund. A decline in the value of or default by a single issuer makes the Fund more susceptible to financial, economic or market events impacting such issuer. Short selling involves unlimited risk including the possibility that losses to the Fund may exceed the original amount it invested. Investments in small and medium capitalization companies may be less liquid and their securities' prices may fluctuate more than those of larger, more established companies.
Foreside Fund Services, LLC, distributor.
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