Rational Funds, a family of funds rooted in the investment philosophy of applying a rational approach to investing, has launched the Rational Funds Income Opportunities Fund (RTFIX).
The fund offers a commercial mortgage–backed securities (CMBS) strategy, and will be sub-advised by Cicero Capital Partners, which has managed a similar strategy in hedge fund form since September 2011.
RTFIX offers an alternative, tactically managed, fixed-income strategy focused on mitigating risk while generating stable monthly cash flow.
To achieve this, the fund invests primarily in CMBS and other commercial real estate structured securities such as REITs. Specifically, the strategy takes positions in duration legacy CMBS credit bonds, short duration CMBS that generate yields from fixed monthly coupon payments, and new issue CMBS when the market is suffering from dislocation and illiquidity.
With these investments, the strategy offers the ability to outperform both equity and fixed-income markets through price appreciation and trade generated gains.
