The Pennsylvania Avenue Funds Launch Event-Driven Fund

The Pennsylvania Avenue Event-Driven Fund, a series of The Pennsylvania Avenue Funds, launched a new mutual fund that offers investors the ability to invest in event-driven strategies: merger arbitrage, distressed securities, capital structure arbitrage and proxy fight investments.

Washington, DC (PRWEB) January 7, 2004 --The Pennsylvania Avenue Event-Driven Fund, a series of The Pennsylvania Avenue Funds, has launched a new mutual fund that offers investors the ability to invest in event-driven strategies.

Thomas Kirchner, CFA, president and portfolio manager of the fund, emphasizes that there are not many options outside the hedge fund universe for investors to invest in multiple event-driven strategies through a single, regulated mutual fund.

We cater primarily to investors interested in alternative strategies but concerned about the risks of unregulated hedge funds. In addition, because we invest directly in securities rather than other funds, we expect to have lower expenses than so-called 'retail hedge funds, which can incur multiple layers of fees" says Kirchner.

The fund uses four event-driven strategies, and the allocation of fund assets to each of these strategies will vary over time and depend upon market conditions:

·   Merger arbitrage: The Fund invests in the securities of companies subject to publicly announced mergers, takeovers, tender offers, and other corporate reorganizations.

·   Capital structure arbitrage: The Fund invests in different securities issued by the same issuer whose different securities are mispriced relative to each other.

·   Distressed securities investments: The Fund invests in distressed securities, which are securities of companies who are in or near bankruptcy or whose securities are otherwise undergoing extreme financial situations that put the continuation of the issuer as a going concern at risk.

·   Proxy fight investments: The Fund invests in securities of companies that are subject to a proxy fight over control over the company.

Investor Class Shares of the fund carry a management fee of 1%, and total operating expenses, after fee reimbursements, are 1.50%. The Fund acts as its own distributor and underwriter for its Investor Class Shares. There is no performance fee.

The fund requires a low minimum investment of $1,000.
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CONTACT INFORMATION:
The Pennsylvania Avenue Funds
P.O. Box 9543
Washington, DC 20016
888-642-6393 (Toll-free)
info@PennAveFunds.com (e-mail)
http://www.PennAveFunds.com (Web)
http://wap.PennAveFunds.com (Wireless Web)

The fund is sold by prospectus only and may not be available to residents of all jurisdictions. Contact the fund at the above address to obtain a copy of the most recent prospectus.