Dividend Investing Ideas Center
Critical Facts You Need to Know About Preferred Stocks
Have you ever wished for the safety of bonds, but the return potential...
Name
As of 11/01/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
YTD Return
4.5%
1 yr return
6.1%
3 Yr Avg Return
2.8%
5 Yr Avg Return
3.6%
Net Assets
$141 M
Holdings in Top 10
39.1%
Expense Ratio 1.66%
Front Load N/A
Deferred Load N/A
Turnover 147.00%
Redemption Fee N/A
Standard (Taxable)
$2,000
IRA
$2,000
Fund Type
Open End Mutual Fund
Name
As of 11/01/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
The Fund invests primarily in a portfolio of debt securities including corporate bonds and debentures (including high yield bonds commonly known as "junk bonds"), bank loans, convertible and preferred securities, credit default swaps and other debt instruments and derivatives that the Fund's investment adviser (the "Adviser") believes have debt-like characteristics. The Fund invests in both U.S. and foreign debt securities. The principal types of derivatives in which the Fund may invest are credit default swaps, interest rate swaps, equity swaps, futures, and options.
The Fund invests primarily in debt securities whose returns the Adviser believes will be more correlated with the outcome of specific catalysts or events rather than overall market direction. These catalysts and events include mergers, acquisitions, debt maturities, refinancings, regulatory changes, recapitalizations, reorganizations, restructurings, and other special situations. The Fund also uses a relative value approach and may express positive views on specific issuers by taking long positions in cash bonds and/or derivatives and negative views on specific issuers by taking short positions in cash bonds and/or derivatives. The Fund uses fundamental research to identify mispricings or inefficiencies in these situations and assesses their potential impact on security prices.
The Fund may engage in short-term trading strategies and may engage in short sales and invest in derivatives. The principal short-term trading strategies may at times include convertible arbitrage, merger arbitrage, and capital structure arbitrage, which are discussed below. The Fund may seek to mitigate the risk of volatility (the appreciation or depreciation of the value of a security over a period of time) and duration (the impact of interest rate changes on fixed-income securities) by engaging in short sales and/or investing in derivatives, including credit default swaps, interest rate swaps, futures, and options. The Fund may purchase or sell short equity securities or derivatives as part of a hedging strategy or hold equity positions or other assets that the Fund receives as part of a reorganization process. The Fund may, but is not required to, seek to reduce currency risk by hedging part or all of its exposure to various foreign currencies. Furthermore, the Fund may invest in exchange traded funds ("ETFs").
The Fund is not limited with respect to its portfolio maturity or duration. The Fund may invest in debt securities without regard to their credit ratings, including securities that are unrated, and in debt securities with a wide variety of terms that may vary from security to security, including but not limited to optional and mandatory prepayment provisions, fixed, variable, semi-variable, and resettable interest rates and conversion options, as well as various combinations of these terms. The Fund may hold a significant portion of its assets in cash, money market or similar cash management funds, or short-term investments for defensive purposes, to preserve the Fund's ability to capitalize quickly on new market opportunities, or for other reasons, such as because the Adviser has determined to obtain investment exposure through derivative instruments instead of direct cash investments. The Fund may also hold a significant amount of cash or short-term investments immediately after a period in which several transactions in which the Fund has invested close in a similar timeframe, yet before capital is redeployed to other opportunities.
Merger Arbitrage: Merger arbitrage is a highly specialized investment approach designed to profit from the successful completion of mergers, takeovers, tender offers, leveraged buyouts, spin-offs, liquidations, and other corporate reorganizations. The most common merger arbitrage activity, and the approach the Fund generally uses, involves purchasing debt securities of an announced acquisition target company at a discount to their expected value upon completion of the acquisition. The Fund may engage in selling securities short when the terms of a proposed acquisition call for the exchange of common stock and/or other securities. In such a case, the securities of the company to be acquired may be purchased and, at approximately the same time, an amount of the acquiring company's common stock and/or other securities as per the terms of the transaction may be sold short.
Convertible Arbitrage: Convertible arbitrage is a specialized strategy that seeks to profit from pricing inefficiencies between a firm's convertible securities and its underlying equity. The most common convertible arbitrage approach, and the strategy the Fund generally uses, matches a long position in the convertible security with a short position in the underlying common stock. The Fund seeks to purchase convertible securities at discounts to their expected future values and sell short shares of the underlying common stock in order to mitigate equity market movements. As stock prices rise and the convertible security becomes more equity sensitive, the Fund may sell short additional common shares in order to maintain the relationship between the convertible and the underlying common stock. As stock prices fall, the Fund will typically buy back a portion of shares which it had sold short. Positions are typically designed to earn income from coupon or dividend payments and net gains from the purchase and sale of the convertible securities' positions and the underlying common stocks.
Capital Structure Arbitrage: Capital structure arbitrage seeks to profit from relative pricing discrepancies between related debt and/or equity securities. For example, when the Fund believes that unsecured securities are overvalued in relation to senior secured securities, the Fund may purchase a senior secured security of an issuer and sell short an unsecured security of the same issuer. In this example the trade would be profitable if credit quality spreads widened or if the issuer went bankrupt and the recovery rate for the senior debt was higher than anticipated. It is expected that, over time, the relative mispricing of the securities may decline, at which point the position will be liquidated.
Period | ARCFX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 4.5% | -10.6% | 16.9% | 66.10% |
1 Yr | 6.1% | -6.3% | 23.8% | 92.14% |
3 Yr | 2.8%* | -17.1% | 16.1% | 19.12% |
5 Yr | 3.6%* | -14.6% | 14.1% | 17.84% |
10 Yr | 2.7%* | -7.2% | 6.7% | 46.78% |
* Annualized
Period | ARCFX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | 2.2% | -12.0% | 8.9% | 62.25% |
2022 | -6.0% | -31.8% | 18.4% | 12.80% |
2021 | 0.7% | -16.2% | 25.7% | 16.50% |
2020 | 3.5% | -31.1% | 18.7% | 30.55% |
2019 | 1.9% | -6.1% | 15.3% | 82.92% |
Period | ARCFX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 4.5% | -10.6% | 16.9% | 66.10% |
1 Yr | 6.1% | -6.3% | 23.8% | 92.14% |
3 Yr | 2.8%* | -17.1% | 16.1% | 19.12% |
5 Yr | 3.6%* | -14.6% | 14.1% | 17.84% |
10 Yr | 2.7%* | -7.2% | 6.7% | 46.78% |
* Annualized
Period | ARCFX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | 7.4% | -6.9% | 22.2% | 58.40% |
2022 | -2.8% | -31.8% | 21.1% | 15.96% |
2021 | 3.1% | -13.5% | 49.9% | 31.37% |
2020 | 6.5% | -28.6% | 24.1% | 40.67% |
2019 | 5.3% | -4.8% | 19.1% | 82.15% |
ARCFX | Category Low | Category High | ARCFX % Rank | |
---|---|---|---|---|
Net Assets | 141 M | 2.53 M | 143 B | 79.21% |
Number of Holdings | 88 | 4 | 9195 | 85.54% |
Net Assets in Top 10 | 57 M | -204 M | 80.4 B | 75.12% |
Weighting of Top 10 | 39.06% | 5.8% | 265.8% | 30.72% |
Weighting | Return Low | Return High | ARCFX % Rank | |
---|---|---|---|---|
Bonds | 95.55% | 0.00% | 199.60% | 30.02% |
Convertible Bonds | 33.50% | 0.00% | 33.50% | 0.48% |
Cash | 2.90% | -94.66% | 91.07% | 55.05% |
Preferred Stocks | 0.00% | 0.00% | 26.42% | 64.85% |
Other | -0.08% | -73.61% | 147.15% | 89.58% |
Stocks | -6.18% | -6.18% | 99.66% | 100.00% |
Weighting | Return Low | Return High | ARCFX % Rank | |
---|---|---|---|---|
Corporate | 85.93% | 0.00% | 96.66% | 2.09% |
Cash & Equivalents | 2.19% | 0.00% | 88.00% | 57.10% |
Securitized | 0.00% | 0.00% | 99.65% | 95.67% |
Municipal | 0.00% | 0.00% | 54.26% | 59.55% |
Government | 0.00% | 0.00% | 99.43% | 89.41% |
Derivative | -0.08% | -73.61% | 147.15% | 78.78% |
Weighting | Return Low | Return High | ARCFX % Rank | |
---|---|---|---|---|
US | 94.73% | 0.00% | 199.60% | 21.00% |
Non US | 0.82% | 0.00% | 74.14% | 59.56% |
ARCFX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Expense Ratio | 1.66% | 0.03% | 20.67% | 31.78% |
Management Fee | 0.95% | 0.00% | 2.29% | 82.72% |
12b-1 Fee | 0.25% | 0.00% | 1.00% | 34.58% |
Administrative Fee | N/A | 0.00% | 0.70% | 12.05% |
ARCFX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Front Load | N/A | 0.00% | 5.75% | 85.25% |
Deferred Load | N/A | 1.00% | 1.50% | N/A |
ARCFX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Max Redemption Fee | N/A | 0.50% | 2.00% | 3.16% |
Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.
ARCFX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Turnover | 147.00% | 0.00% | 632.00% | 83.27% |
ARCFX | Category Low | Category High | ARCFX % Rank | |
---|---|---|---|---|
Dividend Yield | 4.25% | 0.00% | 23.30% | 61.33% |
ARCFX | Category Low | Category High | Category Mod | |
---|---|---|---|---|
Dividend Distribution Frequency | Monthly | Annual | Monthly | Monthly |
ARCFX | Category Low | Category High | ARCFX % Rank | |
---|---|---|---|---|
Net Income Ratio | 2.20% | -1.55% | 11.51% | 74.41% |
ARCFX | Category Low | Category High | Capital Mode | |
---|---|---|---|---|
Capital Gain Distribution Frequency | Annually | Annually | Annually |
Date | Amount | Type |
---|---|---|
Sep 30, 2024 | $0.035 | OrdinaryDividend |
Aug 30, 2024 | $0.034 | OrdinaryDividend |
Jul 31, 2024 | $0.037 | OrdinaryDividend |
Apr 30, 2024 | $0.035 | OrdinaryDividend |
Mar 28, 2024 | $0.035 | OrdinaryDividend |
Feb 29, 2024 | $0.040 | OrdinaryDividend |
Jan 31, 2024 | $0.038 | OrdinaryDividend |
Dec 29, 2023 | $0.041 | OrdinaryDividend |
Nov 30, 2023 | $0.044 | OrdinaryDividend |
Oct 31, 2023 | $0.038 | OrdinaryDividend |
Sep 29, 2023 | $0.037 | OrdinaryDividend |
Aug 31, 2023 | $0.036 | OrdinaryDividend |
Jul 31, 2023 | $0.035 | OrdinaryDividend |
Jun 30, 2023 | $0.035 | OrdinaryDividend |
May 31, 2023 | $0.035 | OrdinaryDividend |
Apr 28, 2023 | $0.037 | OrdinaryDividend |
Mar 31, 2023 | $0.034 | OrdinaryDividend |
Feb 28, 2023 | $0.036 | OrdinaryDividend |
Jan 31, 2023 | $0.036 | OrdinaryDividend |
Dec 30, 2022 | $0.040 | OrdinaryDividend |
Nov 30, 2022 | $0.041 | OrdinaryDividend |
Oct 31, 2022 | $0.029 | OrdinaryDividend |
Sep 30, 2022 | $0.024 | OrdinaryDividend |
Aug 31, 2022 | $0.030 | OrdinaryDividend |
Jul 29, 2022 | $0.025 | OrdinaryDividend |
Jun 30, 2022 | $0.024 | OrdinaryDividend |
May 31, 2022 | $0.022 | OrdinaryDividend |
Apr 29, 2022 | $0.021 | OrdinaryDividend |
Mar 31, 2022 | $0.023 | OrdinaryDividend |
Feb 28, 2022 | $0.018 | OrdinaryDividend |
Jan 31, 2022 | $0.015 | OrdinaryDividend |
Dec 31, 2021 | $0.012 | OrdinaryDividend |
Nov 30, 2021 | $0.026 | OrdinaryDividend |
Oct 29, 2021 | $0.023 | OrdinaryDividend |
Sep 30, 2021 | $0.023 | OrdinaryDividend |
Aug 31, 2021 | $0.026 | OrdinaryDividend |
Jul 30, 2021 | $0.025 | OrdinaryDividend |
Jun 30, 2021 | $0.025 | OrdinaryDividend |
May 28, 2021 | $0.015 | OrdinaryDividend |
Apr 30, 2021 | $0.014 | OrdinaryDividend |
Mar 31, 2021 | $0.010 | OrdinaryDividend |
Feb 26, 2021 | $0.022 | OrdinaryDividend |
Jan 29, 2021 | $0.022 | OrdinaryDividend |
Nov 30, 2020 | $0.021 | OrdinaryDividend |
Oct 30, 2020 | $0.019 | OrdinaryDividend |
Sep 30, 2020 | $0.032 | OrdinaryDividend |
Aug 31, 2020 | $0.025 | OrdinaryDividend |
Jul 31, 2020 | $0.020 | OrdinaryDividend |
Jun 30, 2020 | $0.028 | OrdinaryDividend |
May 29, 2020 | $0.025 | OrdinaryDividend |
Apr 30, 2020 | $0.020 | OrdinaryDividend |
Mar 31, 2020 | $0.011 | OrdinaryDividend |
Feb 28, 2020 | $0.024 | OrdinaryDividend |
Jan 31, 2020 | $0.027 | OrdinaryDividend |
Dec 31, 2019 | $0.030 | OrdinaryDividend |
Nov 29, 2019 | $0.028 | OrdinaryDividend |
Oct 31, 2019 | $0.027 | OrdinaryDividend |
Sep 30, 2019 | $0.025 | OrdinaryDividend |
Aug 30, 2019 | $0.026 | OrdinaryDividend |
Jul 31, 2019 | $0.028 | OrdinaryDividend |
Dec 12, 2017 | $0.024 | DailyAccrualFund |
Mar 16, 2017 | $0.021 | OrdinaryDividend |
Dec 15, 2016 | $0.088 | OrdinaryDividend |
Sep 15, 2016 | $0.036 | OrdinaryDividend |
Jun 16, 2016 | $0.039 | OrdinaryDividend |
Dec 16, 2015 | $0.094 | OrdinaryDividend |
Sep 17, 2015 | $0.052 | OrdinaryDividend |
Jun 18, 2015 | $0.084 | OrdinaryDividend |
Mar 19, 2015 | $0.035 | OrdinaryDividend |
Dec 09, 2014 | $0.093 | OrdinaryDividend |
Sep 18, 2014 | $0.065 | OrdinaryDividend |
Jun 19, 2014 | $0.126 | OrdinaryDividend |
Mar 19, 2014 | $0.060 | OrdinaryDividend |
Dec 18, 2013 | $0.082 | OrdinaryDividend |
Sep 18, 2013 | $0.091 | OrdinaryDividend |
Jun 18, 2013 | $0.173 | OrdinaryDividend |
Mar 19, 2013 | $0.028 | OrdinaryDividend |
Dec 18, 2012 | $0.025 | OrdinaryDividend |
Start Date
Tenure
Tenure Rank
Oct 01, 2012
9.67
9.7%
Gregory(Gregg) Loprete joined Water Island Capital in 2009 and currently serves as a portfolio manager. He is primarily responsible for management of the firm’s convertible and fixed income investments. Prior to joining Water Island Capital, Mr. Loprete worked at Keefe, Bruyette & Woods as a Convertible and Preferred Trader where he evaluated, implemented and managed convertible and capital structure investments. From 2007-2008, Mr. Loprete was a Director in the Convertible Arbitrage Group at Ramius Capital Group, LLC. At Ramius Mr. Loprete also served as co-manager and trader. From 2003 to 2007, Mr. Loprete was a Senior Convertible Analyst and Convertible Banking Liaison at SG Cowen & Company. Mr. Loprete received a Masters of Business Administration degree in Finance from New York University in 1993 and a Bachelors degree from the University of Delaware in 1987 — with a major in English Literature with a minor in Economics.
Start Date
Tenure
Tenure Rank
Jan 31, 2018
4.33
4.3%
Mr. Orrico founded Water Island Capital, the advisor to The Arbitrage Funds, in 2000. He currently serves as Chairman of The Arbitrage Funds series trust and Chief Investment Officer of the firm. Prior to founding Water Island Capital, Mr. Orrico directed arbitrage, special situations, and distressed hedge fund portfolios at Lindemann Capital, which he joined in 1999, in conjunction with starting the organizational process for the Arbitrage Fund. Prior to joining Lindemann Capital, Mr. Orrico joined Gruss & Co in 1994, focusing on merger arbitrage and special situations, and became Senior Arbitrage Analyst in 1996. Mr. Orrico has worked in the securities industry since joining Morgan Stanley in 1982, beginning in corporate finance, with additional experience in institutional equity trading, equity research analysis and portfolio management. Mr. Orrico received a BA from Georgetown University.
Category Low | Category High | Category Average | Category Mode |
---|---|---|---|
0.08 | 28.19 | 5.71 | 3.19 |
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