The Larkin Point solution couples a hedged equity component with a hedged income component to seek both capital growth and capital preservation in a single equity allocation.
Rumson, NJ (PRWEB) December 21, 2013
Larkin Point Investment Advisors LLC today announced the launch of the Larkin Point Equity Preservation Fund (“The Fund” - Tickers: LPIUX and LPAUX). The Fund, which is available through independent financial advisors and allied institutions, offers individual and professional investors a fund that targets growth while seeking protection and balance in a single, professionally managed mutual fund.
“The Larkin Point solution couples a hedged equity component with a hedged income component to seek both capital growth and capital preservation in a single equity allocation,” said President Damian Peter, a CERTIFIED FINANCIAL PLANNER™ professional. “We find many advisors are searching for liquid alternatives to the volatility of the equity market without turning to fixed income. The stock market has performed very well lately. There are advisors who now seek to preserve their clients’ gains, and yet still maintain some participation in the upside of a continued market rally. The goal of our new mutual fund is to combine a cost-effective, ETF-based investing approach with a more balanced exposure to market volatility, and maintain liquidity and diversification. For this reason, we believe that many advisors will select the Larkin Point Equity Preservation Fund as part of a core equity strategy.”
A team of industry veterans manages the Fund. At the helm are Michael Winchell, chief investment officer, and Charlie Hon, portfolio manager. Winchell and Hon have extensive backgrounds in options trading and risk management. The Larkin Point Equity Preservation Fund is administered by Gemini Fund Services, LLC and is a series of the Two Roads Shared Trust.
NEW INVESTMENT LANDSCAPE CHALLENGES TRADITIONAL 60/40 ALLOCATIONS
“For years, financial advisors have been building client portfolios based on a traditional 60/40 asset allocation with the expectation that diversification across stocks and bonds brings balanced and regular returns,” said Winchell. ‘But the investment landscape has changed and many advisors are now considering liquid alternatives to reduce their clients’ exposure to fixed-income securities. The Equity Preservation Fund uses low-cost ETFs for equity exposure; however, we also employ options, seeking both income and capital preservation, in an attempt to reduce the downside risk and volatility of holding equities. We believe our systematic method of managing an ETF-and-options portfolio is rare among managers who use options to seek the three goals of growth, downside protection and income.”
Investors can purchase the Fund directly through Gemini Fund Services. Please call (855) 852-8998. More options to purchase the fund will be available over the coming months.
ABOUT LARKIN POINT INVESTMENT ADVISORS LLC
Larkin Point Investment Advisors LLC (LPIA) is an asset management firm based in Rumson, NJ, founded by Michael Winchell, who began his career as a financial professional in 1983. He has held executive positions, including Chief Risk Officer, at several investment firms. Prior to founding LPIA, he was principal of Mariner VCL Asset Management, where he supervised a global macro trading team focused on capturing the shifts in global business cycles through active asset and strategy allocation. For more information visit http://www.LarkinPoint.com.
MUTUAL FUNDS INVOLVE RISK INCLUDING POSSIBLE LOSS OF PRINCIPAL
Investors should carefully consider the investment objective, risks, charges and expenses of the Larkin Point Equity Preservation Fund. This and other information is contained in the prospectus and should be read carefully before investing. For a prospectus, please call the Larkin Point Equity Preservation Fund at (855) 852-8998. The Larkin Point Equity Preservation Fund is distributed by Northern Lights Distributors, LLC, member FINRA. Northern Lights Distributors, LLC and Larkin Point Investment Advisors LLC are not affiliated.
The fund invests in derivatives. Even a small investment in options may give rise to leverage risk, and can have a significant impact on the Fund's performance. Derivatives are subject to credit risk and liquidity risk. Derivative instruments involve risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments.
ETFs are subject to investment advisory and other expenses, which will be indirectly paid by the Fund. As a result, the cost of investing in the Fund will be higher than the cost of investing directly in ETFs and may be higher than other mutual funds that invest directly in stocks. ETFs are subject to specific risks, depending on the nature of the fund.
The use of leverage, such as that embedded in options, could magnify the Fund’s gains or losses. Written option positions expose the Fund to potential losses many times the option premium received. Written call and put options may limit the Fund’s participation in equity market gains and may amplify losses in market declines. The Fund’s losses are potentially large in a written put or call transaction. If un-hedged, written calls expose the Fund to potentially unlimited losses. Purchased put options may expire worthless and may have imperfect correlation to the value of the Fund’s sector ETFs.
The Fund is a new mutual fund, has a limited history of operation and the adviser has not previously managed a mutual fund. The adviser’s dependence on its process and judgments about the attractiveness, value and potential appreciation of particular ETFs and options in which the Fund invests or sells may prove to be incorrect and may not produce the desired results.