NEW YORK, July 14, 2015 /PRNewswire/ -- Kellner Capital (Kellner), an alternative investment management firm with a specialization in merger arbitrage, is pleased to announce its flagship mutual fund, the Kellner Merger Fund (GAKAX, GAKIX), has celebrated its three-year anniversary.
In addition to reaching this milestone, the Kellner Merger Fund (GAKIX) has earned a 5-Star Overall Morningstar Rating™ among 100 funds in the Market Neutral category for the period ending June 30th, 2015. The Overall Morningstar Rating for the fund was derived from a weighted average of its 3-year Morningstar Ratings metrics, which are based on risk-adjusted return performance.
Through the three-year period ended June 30th, the fund (class I) returned 4.77% annualized, ranking it in the top 4% out of 157 Market Neutral Funds as categorized by Morningstar based on total return, and it is up 3.32% year-to-date through June. The fund returned 5.78% for the one year period, and 4.76% annualized since inception on June 29th, 2012.
The Kellner Merger Fund seeks to achieve positive risk adjusted returns with less volatility than the equity markets. In seeking to achieve the fund's objective, Kellner utilizes a research and investment process focused on risk management that has been refined over more than 30 years.
"We are pleased to be hitting this three-year milestone at a time when M&A activity is at record levels," said George Kellner, CEO and CIO of Kellner Capital. "Deals are taking place in nearly all sectors, with healthcare/pharmaceuticals and technology leading the way. At the same time, our risk-controlled approach is paying off, as the fund consistently has been a top performer in the merger arbitrage category."
"We've seen increased interest from financial advisors and RIAs in our merger arbitrage strategy," said Chris Pultz, portfolio manager of the Kellner Merger Fund. "With what we think are rising interest rates on the horizon, investors are looking for products that may have a positive correlation to interest rates. Historically, merger arbitrage has provided that."
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 855-535-5637 or visiting www.kellnerfunds.com. The Gross Expense Ratio for GAKIX is 3.02%.
ABOUT MERGER ARBITRAGE
Merger arbitrage is an active trading strategy that seeks to generate positive absolute returns by profiting from the deal spread of publicly announced mergers and acquisitions. Merger arbitrage has historically shown low correlation and significantly less downside volatility than the broader equity markets.
ABOUT KELLNER CAPITAL
Founded in 1981, Kellner Capital began as a merger arbitrage hedge fund, and today remains as one of Wall Street's most seasoned alternative investment managers. The firm pursues a broad, global, opportunistic investment mandate focused on event driven opportunities and offers its services through limited partnerships, managed accounts and mutual funds.
The Kellner Merger Fund seeks to achieve positive risk-adjusted returns with less volatility than the equity markets by investing in securities of companies in publicly announced mergers and other corporate events. Since merger spreads incorporate an interest rate component, an increase in the risk free rate may increase the returns of merger arbitrage portfolios.
Correlation: a statistical measure of how two securities move in relation to each other.
The Fund's investment objectives, risks, charges and expense must be considered carefully before investing. The summary or statutory prospectus contains this and other important information about the investment company, and it may be obtained by calling 855-535-5637, or visiting www.kellnerfunds.com. Read it carefully before investing.
Mutual fund investing involves risk. Principal loss is possible. Investments in companies that are the subject of a publicly announced transaction carry the risk that the proposed or expected transaction may not be completed or may be completed on less favorable terms than originally expected, which may lower the Fund's performance. Investments in foreign securities involve greater volatility and political, economic and currency risks and difference in accounting methods. Investments in small and medium sized companies involve additional risks such as limited liquidity or greater volatility. Derivatives involve special risks including correlation, counterparty, liquidity, operational, accounting and tax risks. These risks, in certain cases, may be greater than the risks presented by more traditional investments. The fund may make short sales of securities, which involves the risk that losses may exceed the original amount invested. The fund may use leverage which may exaggerate the effect of any increase or decrease in the value of portfolio securities or the Net Asset Value of the fund, and money borrowed will be subject to interest costs. The Fund is nondiversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, the Fund is more exposed to individual stock volatility than a diversified fund.
Kellner Management, LP is the Advisor to the Kellner Merger Fund, which is distributed by Quasar Distributors, LLC.
Morningstar Rankings represent a fund's total-return percentile rank relative to all funds that have the same Morningstar Category. The highest percentile rank is 1 and the lowest is 100. It is based on Morningstar total return, which includes both income and capital gains or losses and is not adjusted for sales charges or redemption fees. Morningstar ranked GAKIX in the top 4% out of 157 Market Neutral Funds for the one-year period ending 6/30/2015. Past performance does not guarantee future results.
For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ (based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance, including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. The Kellner Merger Fund was rated against 100 Market Neutral Funds over the last three years. With respect to these Market Neutral Funds, the Kellner Merger Fund received a Morningstar Rating of 5 stars for the three-year period. The rating is specific to the institutional share class and does not apply to other share classes of the Fund.
© 2015 Morningstar, Inc. All Rights Reserved. The information contained herein (1) is proprietary to Morningstar (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any sue of this information
SOURCE Kellner Capital