RiverNorth signs Oaktree Capital for new mutual fund
By Christine Williamson | January 23, 2013 1:53 pm
RiverNorth Capital Management hired credit manager Oaktree Capital Management (OAK) as a subadviser for its new mutual fund, the RiverNorth/Oaktree High Income Fund, confirmed Patrick Galley, RiverNorth's chief investment officer.
The new fund invests in three strategies: high-yield bonds, senior loans and closed-end funds. Oaktree portfolio managers Sheldon Stone, also an Oaktree principal, and Desmund Shirazi will manage about 75% of the fund's assets and will handle the tactical allocation between high-yield bonds and senior loans.
Mr. Galley and Stephen O'Neill, RiverNorth's portfolio managers, will invest the remaining 25% opportunistically in closed-end fund shares in underfollowed asset classes where pricing inefficiencies potentially result in higher returns, Mr. Galley said.
Separately, RiverNorth appointed Jay Nolan as a portfolio specialist who will act as liaison between the firm's institutional and retail clients and the investment management team, providing strategy and portfolio advice, Mr. Galley said.
RiverNorth Capital manages $2.3 billion in a variety of investment approaches and in a variety of investment vehicles with a focus on credit and fixed-income strategies.