SAN FRANCISCO, May 22, 2017 /PRNewswire/ -- Hagens Berman Sobol Shapiro LLP reminds investors in Catalyst Hedged Futures Strategy Fund (MUTF: HFXAX, HFXCX, HFXIX) of the June 27, 2017 Lead Plaintiff deadline in the pending securities class action.
If you purchased or otherwise acquired Class A (HFXAX), Class C (HFXCX), or Class I (HFXIX) shares of Catalyst Hedged Futures Strategy Fund between November 1, 2014 and April 28, 2017 and suffered losses contact Hagens Berman Sobol Shapiro LLP. For more information visit:
or contact Reed Kathrein, who is leading the firm's investigation, by calling 510-725-3000 or emailing HFXAX@hbsslaw.com.
Before August 2013 Catalyst was organized as a hedge fund known as Harbor Assets, LLC. In changing to a mutual fund and raising capital from ordinary retail investors, Defendants stated that the Fund's objective is capital appreciation and capital preservation in all market conditions, with low volatility and low correlation to the U.S. equity market.
These and other statements were allegedly materially misleading because, after the change, the Fund invested as if it were still a hedge fund and violated its stated objective. As a result, between February 2 and February 15, 2017, the Fund lost approximately 15% of its value and has not recovered.
On February 17, 2017, Seeking Alpha shed some light on the Fund in a report entitled "Catalyst Hedged Futures Strategy Fund Off The Rails." The author stated in part: (a) "[t]he problem with Catalyst's strategy is that one of its stated objectives is capital preservation but, as we saw last week, this objective was severely violated", (b) "[a]pparently, Catalyst's book was set up to benefit from declines in the market", (c) "[w]hat is now readily apparent in hindsight is that Catalyst's book was net short gamma in way out of the money calls", and (d) "I think it's unfair to market this type of strategy as a 'capital preservation strategy' because it clearly isn't."
"After Catalyst changed from a hedge fund to a mutual fund it became obligated under the Investment Company Act and other securities laws to provide enhanced disclosures to ordinary retail investors," said Hagens Berman partner Reed Kathrein. "The Fund's apparent short strategy, if true, may contradict Defendants' stated objectives."
Whistleblowers: Persons with non-public information regarding Catalyst should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email HFXAX@hbsslaw.com.
About Hagens Berman
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Reed Kathrein, 510-725-3000
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SOURCE Hagens Berman Sobol Shapiro LLP