Leawood, Kansas-based Palmer Square Capital Management LLC, has launched its second alternative mutual fund, dubbed the Palmer Square SSI Alternative Income Fund.
The firm partnered up with Montage Investments, to raise some $160 million of investment capital to launch the long/short fund, which bets on convertible securities on the long side and shorts the common stock of the issuers of those convertible securities. The fund offers investor and institutional share classes, trading under the symbols PSCAX and PSCIX, respectively. It is sub-advised by Beverly Hills, CA-based SSI Investment Management and charges a management fee of 130 basis points.
According to Christopher Long, president of Palmer Square, Montage serves as the fund's marketer, sales and distribution arm. "The mandate for the fund is absolute return with a focus on fixed income," he told MME. "We continue to see demand for alternative products as investors increase the percentage of their portfolios to alternatives."
This is the second time that Palmer Square has teamed up with Montage to launch a fund. The two firms last May launched the Palmer Square Absolute Return Fund. Long said that his firm is currently working on another alternative product to be launched toward the latter half of the year. He declined to divulge further details on the new offering.