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SOURCE Convergence Investment Partners; Montage Investments
The Convergence Opportunities Fund expands the firm's successful investment approach to the small- to mid-cap space
MEQUON, Wis., Dec. 17, 2013 /PRNewswire/ -- Convergence Investment Partners, a quantitative equity manager that develops strategies with a goal of exploiting market inefficiencies, today announced that it has launched a new mutual fund, the Convergence Opportunities Fund, which focuses on investing in small- to mid-cap stocks.
The fund is the second mutual fund offered by Convergence Investment Partners. The firm's other fund, the Convergence Core Plus Fund, is rated 5-Stars by Morningstar in the Large Blend category versus 1,372 funds (as of September 30, 2013). The Overall Morningstar RatingTM for the fund is derived from a weighted average of the fund's three-, five- and ten-year risk-adjusted return measure, if applicable.*
Driven by Convergence's quantitative approach, the Convergence Opportunities Fund mirrors the strategy, approach and process of the Core Plus Fund and seeks to generate returns for investors by identifying not only value, but also what the market is valuing. By incorporating the ability to short, the fund strives to provide additional alpha above similar long-only strategies.
"We have been managing this strategy as a separate account for some time now, and we are very excited for the launch of this mutual fund," said David W. Schulz, CFA, president of Convergence Investment Partners. "In this format, we are able to open our strategy up to a much wider range of investors. I believe this fund is unique in the small- to mid-cap space, and I look forward to introducing it to the advisors and investors we work with."
According to Convergence's chief investment officer, David J. Abitz, CFA, "At Convergence, we strive to identify not only top performing stocks, but also attributes the current market is either rewarding or punishing. I am very excited to bring this approach to the small- to mid-cap space, as I believe there are many opportunities to generate excess returns for investors over time."
Convergence's partners – David Schulz, David Abitz, Jonathan Franklin and Todd Hanson – average nearly two decades of experience managing similar quantitative investment strategies. The new fund will complement Convergence's existing lineup, which includes several separate accounts in addition to the Convergence Core Plus Fund.
The fund was launched in collaboration with Montage Investments, Convergence Investment Partner's parent company. According to Gary P. Henson, CFA, CFP®, president and chief investment officer of Montage Investments, "I am looking forward to sharing this fund with the advisors and financial intermediaries we work with. Convergence's distinct investment process and approach have contributed to its track record, and I believe this fund has the potential to perform well in the small- to mid-cap space."
About Convergence Investment Partners
Convergence Investment Partners uses quantitative tools to select investments, construct portfolios and manage risk for individuals, businesses, financial advisors and institutional investors. The team applies proprietary investment strategies, supported by extensive research, with a goal of generating alpha across various stages of the market cycle.
About Montage Investments
Montage Investments provides institutional-caliber investments to investors and the financial professionals who serve them. Through a family of independent asset managers, unified by deep market insight and fundamental research, Montage offers alternative investment solutions across the spectrum of asset classes and strategies that include mutual funds, closed-end funds and separate accounts. Collectively, Montage Investments managed $18 billion as of September 30, 2013.
*The Overall Morningstar RatingTM for a fund is derived from a weighted average of the fund's three-, five- and ten-year risk adjusted return measure, if applicable.
Before you invest in the Convergence funds, please refer to the Summary Prospectus and Prospectus for important information about the investment company, including investment objectives, risks, charges and expenses. You may also obtain a hardcopy of the statutory prospectus and summary prospectus by calling 1-877-677-9414. The prospectus should be read carefully before you invest or send money.
Mutual fund investing involves risk. Principal loss is possible. Investments in mid-cap companies involve additional risk such as limited liquidity and greater volatility than larger capitalization companies. Small-capitalization funds typically carry additional risks because smaller companies generally have a higher risk of failure. Their stocks are subject to a greater degree of volatility, trade in lower volume and may be less liquid. The funds invests in foreign securities, which involve greater volatility and political, economic and currency risks and differences in accounting methods. The funds regularly make short sales of securities, which involve unlimited risk including the possibility that losses may exceed the original amount invested. However, a mutual fund investor's risk is limited to one's amount of investment in a mutual fund.
Alpha is an annualized return measure of how much better or worse a fund's performance is relative to an index of funds in the same category, after allowing for differences in risk. You cannot invest directly in an index.
Convergence Investment Partners is the advisor to the Convergence Core Plus Fund and the Convergence Opportunities Fund, which are distributed by Quasar Distributors, LLC.
Convergence Investment Partners is majority owned by Montage Investments LLC.
© 2013 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 use of this information. Past performance is no guarantee of 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. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) 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 Convergence Core Plus Fund was rated against 1,372 U.S.-domiciled Large Blend funds over a 3-year time period. With respect to these Large Blend funds, the Convergence Core Plus Fund received a Morningstar Rating of 5 stars.
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