Larkin Point Investment Advisors LLC today launched the Larkin Point Equity Preservation Fund, which uses an ETF-based investing approach that couples a hedged equity component with a hedged income component in the name of both capital growth and capital preservation.
According to the fund’s prospectus, the product’s hedged equity strategy invests directly in low-cost ETFs that track broad-based indexes such as the S&P 500 Index, as well as in ETFs that hold more narrow underlying investments such as high dividend stocks or investments in particular industry sectors. In addition, the Fund will invest in futures contracts that reference broad-based indexes such as the S&P 500 Index, and will invest in long-term put options in an attempt to generate income and reduce equities-related volatility.
The hedged income strategy focuses on selling short-term put and call options (generally two or three months) on equity indexes such as the S&P 500 Index and other U.S. equity indexes or ETFs.
“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.” Michael Winchell, founder and chief investment officer of Rumson, N.J.-based Larkin Point, said in a statement.
Winchell will co-manage the fund with Charlie Hon, a principal at the firm.
The fund’s Class A shares (LPAUX ) pack a 5.75 percent load, have a $2,500 investment minimum and total fees of 2.05 percent. The Class I shares (LPIUX) are no-load, have a $100,000 minimum and fees of 1.80 percent.
Investors can purchase the fund directly through Gemini Fund Services. Larkin Point says more purchase options for the fund will be available in coming months.