DALLAS, Nov. 6, 2013 /PRNewswire/ -- Ranger Capital Group, an employee-owned holding company for registered investment advisors offering traditional and alternative investment opportunities to institutional and high net worth individual investors, has launched the Ranger Specialty Income Fund. The Ranger Specialty Income strategy seeks to provide both domestic and non-domestic investors with attractive yield and monthly cash flow attributable to investments in the peer-to-peer lending space.
Ranger Specialty Income's portfolio will consist of investments in consumer and business loans offered by peer-to-peer lending platforms, which enable investors to directly participate in the consumer credit markets. This burgeoning asset class has a low correlation to equity and traditional fixed-income investments, and returns on these investments have generally been higher than many other types of fixed-income products.
"The creditworthiness of peer-to-peer loan borrowers and the growth of peer-to-peer lending platforms, combined with low yields in the fixed-income universe, make this the ideal time to launch the Ranger Specialty Income Fund," said K. Scott Canon, President of Ranger Capital. "We have created an institutionally structured product that utilizes artificial intelligence technology to deliver attractive returns to investors."
The average peer-to-peer loan borrower is a homeowner with a FICO score above 700 who uses the loan for debt consolidation purposes. The popularity of peer-to-peer lending is rapidly increasing, with the market expected to surpass $3.5 billion by the end of this year.
The Ranger Specialty Income strategy uses a proprietary artificial intelligence system known as TruSight Technology™ to evaluate, select and invest in peer-to-peer loans. Developed by Portfolio Manager Gary Melara exclusively for investing in peer-to-peer loans, artificial intelligence (AI) algorithms generated by TruSight evaluate over six years of historical data and hundreds of borrower credit fields from the peer-to-peer lending platforms. TruSight algorithms seek to identify the important criteria of loans with the highest potential returns on investment. Ranger Specialty Income's TruSight Technology and approach to peer-to-peer investing has been actively used for almost four years and has never had a losing month.
"TruSight's AI algorithms and loan-monitoring mechanisms enable us to create a truly diversified portfolio of what we believe to be the most promising peer-to-peer loans," said Mr. Melara. "Our proprietary loan evaluation technology, years of peer-to-peer investment experience and guidance from consumer credit experts provide investors with a unique opportunity to actively capitalize on this new asset class."
Until recently, consumer credit markets were dominated by large banks and financial institutions. Following the financial crisis in 2008 and the enactment of new industry regulations, these institutions found it too time-consuming and expensive to continue making consumer loans for credit card debt and other personal matters. This development led to the rise of online peer-to-peer lending platforms that bring together investors and creditworthy borrowers.
"Our ongoing evaluations of traditional and alternative sources of investment income have convinced us that peer-to-peer lending presents a very attractive opportunity for investors seeking a stream of principal and interest at this time," said Mr. Canon. "We have an established track record of offering specialty niche products that provide a consistent, repeatable approach to investing and risk management, and the launch of the Ranger Specialty Income Fund is a continuation of our commitment to delivering attractive investment opportunities to institutional and high net worth investors."
For more information about the Ranger Specialty Income Fund, please contact Bill Kassul at 214-871-5270 or firstname.lastname@example.org.
About Ranger Capital Group
Ranger Capital Group is an employee-owned holding company for registered investment advisors offering traditional and alternative investment opportunities to institutional and high net worth individual investors. Currently, Ranger affiliated investment advisers manage over $3 billion in assets. Ranger Investments manages growth-oriented domestic equity portfolios which seek to capture and compound returns from small- and mid-capitalized U.S. companies while managing risk. Ranger International specializes in global income & growth and international equity strategies. Ranger Alternatives manages the first actively managed short-only ETF and one of the earliest institutionally oriented peer-to-peer funds.
For more information, visit: www.rangerspecialtyincome.com
SOURCE Ranger Capital Group