Orinda Alternative Mutual Fund Platform

Vivaldi Merger Arbitrage Fund

Fund Facts

A Share
Ticker:   VARAX
Cusip:    46141T 877
I Share
Ticker:   VARBX
Cusip:    46141T 869

Reasons to Invest

  • Low correlation to stock and bond markets
  • Highest conviction – only 15-25 positions diversified by sector and industry
  • 18+ year track record

Portfolio Managers

Jeff O’Brien
Dan Lancz

Fund Objective

The Fund seeks returns that are largely uncorrelated to the general stock market, and capital appreciation.

Investment Strategy

The strategy seeks to take advantage of the return opportunity presented by the natural deal spread that emerges after the announcement of a merger or acquisition. The primary goal is to look for the best risk-adjusted deals for the portfolio, focusing on strategic combinations of solidly performing targets by well-financed acquirers.

Performance – Average Annualized Returns*

As of 9/30/2019QTDYTD1-YR3-YR5-YR10-YRSince
Inception
(4/1/2000)
Performance at NAV Net Asset Value does not include sales charges
A share (VARAX)1.50%2.84%5.26%3.15%3.18%3.95%9.67%
I share (VARBX)1.57%3.10%5.52%3.45%3.49%4.24%9.96%
Barclays Agg. Bond Index2.27%8.52%10.30%2.92%3.38%3.75%5.03%
S&P 500 Index1.70%20.55%4.25%13.39%10.84%13.24%5.62%
Performance at MOP Maximum Offering Price includes maximum sales charge of 5.75% for Class A Shares
A share (VARAX)-4.32%-3.04%-0.78%1.12%1.96%3.33%9.34%
Expense Ratio: A share 1.79% net (2.50% gross); I share 1.50% net (2.21% gross).
* QTD, YTD, 1-YR are not annualized.

Vivaldi Asset Management, LLC has contractually agreed to waive its fees and/or pay for operating expenses of the Fund to ensure that total annual fund operating expenses (excluding any taxes, leverage interest, brokerage commissions, dividend and interest expenses on short sales, acquired fund fees and expenses) do not exceed 1.85% and 1.55% of the avg. daily net assets of Class A and Class I shares of the Fund, respectively, until January 31, 2020.

Performance quoted represents past performance and does not guarantee future results. Performance shown includes the performance of the unregistered Predecessor Fund* (incepted 4/1/2000) which converted its assets and performance into the Vivaldi Merger Arbitrage Fund on 10/01/2015. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here.

The performance history is net of all current fund fees and reflects the impact of the Contractual Waiver Agreement. If the Contractual Waiver Agreement were not in place, the Fund’s performance would be reduced. Performance data current to the most recent month-end is available at 877.779.1999.

Click for the Statutory or Summary prospectus of the Vivaldi Merger Arbitrage Fund. Please read and consider the prospectus carefully before investing.

Mutual fund investing involves risk. Principal loss is possible. Investments in companies that are 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 securities or the net asset value of the fund, and money borrowed will be subjected to interest costs. In the case of an investment in a potential acquisition target, if the proposed merger, exchange offer or cash tender offer appears likely not to be consummated, in fact is not consummated, or is delayed, the market price of the security to be tendered or exchanged will usually decline sharply, resulting in a loss to the fund. If a put or call option purchased by the fund expires without being sold or exercised, the fund will lose the premium it paid for the option. The risk involved in writing a covered call option is the lack of liquidity for the option. The fund is non-diversified, 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. For a complete description of risks please read the prospectus.

*On 10/01/2015 the Highland Capital Management Institutional Fund, LLC, a Delaware Limited Liability Company which commenced operations on April 1, 2000 (the “predecessor fund”), converted into the Vivaldi Merger Arbitrage Fund (1940 Act registered fund) pursuant to which the predecessor fund transferred substantially all of its assets into the fund. The fund’s objectives, policies, guidelines and restrictions are, in all material respects, substantially the same as those of the predecessor fund. The predecessor fund was not registered under the 1940 Act and, therefore, was not subject to certain restrictions imposed by the 1940 Act on registered investment companies and by the Internal Revenue Code of 1986, as amended, on regulated investment companies, such as the fund. Please review the prospectus for additional details.

S&P 500 Index – the S&P 500 Index includes a representative sample of 500 leading companies in leading industries of the U.S. economy. Barclays U.S. Aggregate Bond – the index is market capitalization weighted and includes treasury securities, government agency bonds, mortgage backed bonds and corporate bonds. It excludes municipal bonds and treasury inflation-protected securities because of tax treatment.

Vivaldi Asset Management, LLC is the advisor to the Vivaldi Merger Arbitrage Fund which is distributed by IMST Distributors, LLC.
Quasar and IMST are not affiliated.