RiverNorth Capital Management today filed a registration with the U.S. Securities and Exchange Commission for a new mutual fund—the RiverNorth/Oaktree High Income Fund. The fund will be sub-advised by Oaktree Capital Management, an investment management firm with $78.7 billion in assets under management.
The RiverNorth/Oaktree High Income Fund’s assets will be allocated among three principal strategies: a Tactical Closed-End Fund strategy, a High Yield strategy and a Senior Loan strategy, according to the firms’ SEC filing. RiverNorth, which specializes in tactical closed-end fund strategies, will manage that portion of the new fund, while Oaktree Capital will manage the high yield and senior loan portions.
The fund will be managed by a team of four portfolio managers: Patrick Galley, the Chief Investment Officer of RiverNorth Capital; Stephen O’Neill; Desmund Shirazi, Managing Director and U.S. Senior Loan Portfolio Manager of Oaktree Capital; and Sheldon Stone, Principal and High Yield Portfolio Manager of Oaktree Capital.
The new fund looks to play to each firm’s strengths. Oaktree has focused on risk control across alternative asset classes and has expertise in credit, while RiverNorth has used investment strategies that capitalize on market inefficiencies and has utilized quantitative and qualitative closed-end fund trading.