NEW YORK, Jan. 22, 2014 /PRNewswire/ -- Pine Grove Asset Management LLC (PGAM) today announced the launch of the Pine Grove Alternative Institutional Fund (Alt Instl Fund), its first registered closed-end fund under the Investment Company Act of 1940.
The Alt Instl Fund adds to the well-established fund-of-funds offerings at PGAM, which was founded in 1994 and is one of the oldest, independent firms in the hedge fund industry. The Alt Instl Fund will provide accredited investors with streamlined access to relative value and event driven hedge fund strategies with a core focus on credit investing.
With the launch of the Alt Instl Fund, PGAM took deliberate steps to convert a private, unregistered fund into a registered '40 Act fund format. The investment goals, strategies and limitations of the registered fund are substantially similar to those of its predecessor unregistered fund, unlike most other registered offerings.
"Continuing to invest in our underlying managers' flagship portfolios was extremely important to us when we constructed this vehicle," said Matthew Stadtmauer, PGAM President. "Since the new Alt Instl Fund acquired the assets of its predecessor fund, it will be one of the only '40 Act funds that benefits from a 16-year performance history."
One means of accessing Pine Grove's new registered closed-end fund will be through CAIS, the leading financial product platform servicing the independent wealth management community. "CAIS provides advisors with turnkey access to funds and, with the recent Fidelity–CAIS strategic alliance, CAIS brings broad coverage of the registered investment advisor and broker-dealer community," Stadtmauer continued.
The Alt Inst Fund invests into hedge funds that employ a variety of investment strategies, including, but not limited to, distressed credit investing, hedged credit, convertible arbitrage and long/short equity (low net exposure).
"By focusing on credit strategies, we are offering investors exposure to managers who exploit market inefficiencies that most traditional long-only funds are not capturing," said Tom Williams, PGAM CIO. "Our portfolio construction is positioned to handle a potential rise in interest rates as the managers we allocate to usually display negative correlation to high quality bonds."
About Pine Grove Asset Management LLC
Pine Grove is a leading fund of hedge fund manager managing approximately $1bn. Pine Grove was incepted in 1994 and has been managing relative value and event driven portfolios since its inception.
Pine Grove is 100% employee owned and is located in Summit, NJ and New York City, NY.
CAIS is the leading financial product platform for the independent wealth management industry, providing efficient access and execution to a diversified offering of institutional funds and products. CAIS offers advisors streamlined access, information and execution to an expanding menu of alternative mutual funds, hedge funds, private equity funds, structured products, capital markets and real assets. CAIS complements its centralized multi-product offering with independent due diligence provided by Mercer, portfolio construction tools and electronic trade execution. CAIS is located in New York City, NY. www.caisgroup.com
This closed-end Fund seeks long-term capital appreciation. Actual performance and results may vary substantially from the stated objectives with respect to risks. Investments in the Fund are speculative and are meant for sophisticated investors. Investors may lose all or a substantial part of their investment. There are no secondary markets for interests/shares in the Funds and none are expected to develop. There are also substantial restrictions on liquidity and transfers, so an investor may not have access to capital when it is needed and may have to bear the risk of an investment longer than anticipated.
Certain of the Fund's managers may employ leverage or short selling, may purchase or sell options or derivatives and may invest in speculative or illiquid securities. It should be noted that fund of funds have multiple layers of fees and expenses that may offset profits. An investment in the Fund is also subject to distressed securities risk, interest rate risk, high yield securities risk, convertible securities risk, other asset back security and collateralized loan obligation risk, non-U.S. securities and government securities risk, foreign and currency risk, non- diversification risk and small and medium capitalization risk. All of which will impact an investment in the Fund. Finally, it should be noted that this is a brief summary of the investment risks.
Investors should consider the investment objectives, risks, fees and expenses carefully before investing. For a prospectus with this and other information about the Fund, please call (855) 699-3103. Read the prospectus carefully before investing. Distributed by Foreside Fund Services, LLC.
SOURCE Pine Grove Asset Management LLC