Reprinted from Business Wire
August 04, 2016 08:45 AM Eastern Daylight Time
GREENWICH, Conn.–(BUSINESS WIRE)–Recon Capital, an investment firm and exchange traded fund (ETF) provider has expanded its product offerings by partnering with Crow Point Partners, LLC, a boutique investment manager with a long track record in global equity, alternative, and specialty fixed income strategies, to offer the Crow Point Dividend Plus Fund (Symbol: GDPIX).
“We are excited to be working with Crow Point to use our expertise in options to deliver distinct and practical solutions for today’s yield buyer”
“Today, with yield and volatility curves at historic lows, investors face an inordinate amount of assymetric risk. Investment management firms need to provide products to help them. We believe GDPIX does that,” said Peter DeCaprio, the CEO and co-founder of Crow Point. The Crow Point Dividend Plus Fund is comprised of three strategic sleeves: (1) a rules-based global long/short equity portfolio, which is the majority of the fund’s invested assets; (2) a short duration, high-quality floating-rate bond sleeve;and (3) a dynamic options overlay for additional income.
According to Garrett Paollela, CEO of Recon Capital and the fund’s adviser, “Closed-end funds could be an ideal structure for long/short strategies and the market is long overdue for this distinct product.” The long/short strategy seeks to create a short portfolio that minimizes income and reinvests those short proceeds into a long portfolio that maximizes income” Paollela added, “The closed-end fund structure gives a manager more flexibility than an open-end fund in constructing a long/short portfolio that results, for investors, in a balance between higher yields and risk mitigation.”
“We are excited to be working with Crow Point to use our expertise in options to deliver distinct and practical solutions for today’s yield buyer,” Paollela said. “Crow Point has a very experienced team ideally suited for this product. Managing duration exposure is a skill set that income investors will need in the years to come, and we are pleased to present a product that does that.“ Paollela added, “Recon Capital is committed to using our operational infrastructure to deliver market-driven, value-added products that strive to meet the evolving needs of global investors and this product embodies that notion.”
About Recon Capital Partners:
Recon Capital Partners, LLC is an SEC registered investment adviser headquartered in Greenwich, Connecticut. Recon Capital provides investment solutions for institutional investors, financial professionals, and individual investors in a liquid, transparent, and cost effective manner. Recon Capital deploys its strategies through several investment vehicles including, but not limited to, exchange traded funds, closed end funds and separately managed accounts. For more information, please visit http://www.reconfunds.com and www.reconcapitalpartners.com for more detail.
About Crow Point Partners
Crow Point Partners, LLC, founded in 2006, manages approximately $1.0 billion in assets in sub-advised mutual funds, proprietary mutual funds, SMA’s and private partnerships. Crow Point managers have been investing globally since 1994 in both the equity and fixed income markets, and with prior firms managed as many as 13 different strategies with over $65 billion in assets. The company offers global investment solutions in equity income, hedged equity, and specialty fixed-income strategies. Additional information about Crow Point may be found at www.cppinvest.com.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Crow Point Global Dividend Plus Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling 1-844-348-7587 (844-DIV-PLUS) or at www.reconfunds.com/GDPIX. The prospectus should be read carefully before investing. The Crow Point Global Dividend Plus Fund is distributed by Northern Lights Distributors, LLC member FINRA. Recon Capital Partners, LLC and Northern Lights Distributors, LLC are not affiliated.
The Crow Point Global Dividend Plus Fund is a continuously offered, non-diversified, closed-end management investment company.
This investment may not be suitable for all investors and an investment in the Fund is suitable only for investors who can bear the risks associated with the illiquidity of the Fund’s shares and should be viewed as a long-term investment.
Long/ Short: Involves buying long equities that are expected to increase in value and selling short equities that are expected to decrease in value.
An investment in the Fund is not appropriate for all investors. The Fund is intended for investors seeking a high level of income over the long term. The Fund is not meant to provide a vehicle for those who wish to exploit short-term swings in the stock market. The Fund cannot assure you that the investment objectives will be achieved. Fund is not intended to be a complete investment program. There are several risks associated with transactions in options on securities used in connection with the Fund’s options strategy. The Fund is a newly organized, non-diversified, closed-end investment Management Company and it has no operating history. The Fund will have substantial short positions. The Fund is actively managed, and its performance will reflect the Adviser’s ability to make investment decisions that are suited to achieving the Fund’s investment objectives.
The Fund may invest in securities that are traded in foreign markets and that are not subject to the requirements of the U.S. securities laws, markets and accounting requirements (“Foreign Securities”). Emerging securities markets are substantially smaller, less developed, less liquid and more volatile than the major securities markets. The Fund intends to attempt to limit exposure to a possible market decline in the value of its portfolio securities through short sales of securities. The Fund will have substantial short positions.
Rising interest rates may adversely affect the price of the securities held by the Fund. The Fund’s strategy of investing in dividend-paying stocks involves the risk that such stocks may fall out of favor with investors and underperform the market.
The Fund may invest in securities of issuers that have comparatively smaller capitalizations relative to issuers whose securities are included in major equity benchmark indices, which presents unique investment risks. The Fund will not use external leverage to seek to achieve its investment objectives, external leverage being defined as borrowing funds from banks or other financial institutions, reverse repurchase agreements, dollar rolls and/or the issuance of preferred shares, or leverage in the form of a revolving credit facility. The Fund may gain exposure to the real estate sector by investing in REITs, real estate-linked derivatives, and common, preferred and convertible securities of issuers in real estate-related industries. Each of these types of investments are subject to risks similar to those associated with direct ownership of real estate. Although the equity securities in which the Fund invests generally trade on major stock exchanges, certain securities may trade less frequently, potentially those of issuers with smaller capitalizations. Securities with limited trading volumes may display volatile or erratic price movements.
The use of Derivative Transactions may be speculative and involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. There can be no assurance that a liquid market will exist when the Fund seeks to close out an exchange-listed option position. The Fund may sell index put and call options from time to time. Income on options on individual stocks will generally not be recognized by the Fund for tax purposes until an option is exercised, lapses or is subject to a closing transaction. There can be no assurance that any hedging activities of the Fund, including through derivative transactions, will be successful. Fund may invest in the securities of other investment companies, including exchange-traded funds, and in exchange- traded notes.
The Crow Point Global Dividend Plus Fund (the “Fund”) is registered with the U.S. Securities and Exchange Commission as a non-diversified, management investment company, pursuant to the Investment Company Act of 1940. An investment in the Fund is subject to risk, including the loss of principal amount invested. There is no guarantee the Fund will achieve its investment objective. The Fund’s shares may be more volatile than the performance of a broadly diversified portfolio. The Fund is not by itself a complete or balanced investment program.
Market forces may result in shares trading at a significant premium or discount to NAV. Although the shares are currently listed on an exchange, there can be no assurance that an active trading market for the shares will develop or be maintained.
The Fund’s performance is expected to be closely tied to social, political, and economic conditions within Europe and to be more volatile than the performance of more geographically diversified funds. An investment in European securities can be adversely affected by a variety of factors, among which are: restrictions on inflation rates, deficits, interest rates, debt levels and fiscal and monetary controls imposed by the European Union or European Monetary Union; historically high unemployment and significant debt problems in certain European nations; recently volatility in European financial markets due to concerns about economic downturns or rising government debt levels. Currently, a significant portion of the Index is allocated to securities of companies in France, Germany and Spain.
Recent events have adversely affected the exchange rate of the euro and may continue to significantly affect every country in Europe, including countries that do not use the euro. Changes in currency exchange rates and the relative value of non-U.S. currencies will affect the value of the Fund’s investment and the value of your Fund Shares. Because the Fund’s NAV is determined in U.S. dollars, the Funds NAV could decline if the currency of the non-U.S. market in which the Fund invests depreciates against the U.S. dollar, even if the value of the Fund’s holdings, measured in the foreign currency, increases.
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Recon Capital Partners
Kevin Kelly, 203-900-1400