In an effort to expand its presence across more distribution channels, the RiverPark/Gargoyle Hedged Value Fund has reorganized itself as the TCW/Gargoyle Hedged Value Fund. The fund retained its sub-advisor Gargoyle Investment Advisors, and its co-portfolio managers Joshua Parker and Alan Salzbank. In addition, the fund will follow a “substantially similar” investment strategy. The only significant difference, post-reorganization, is that TCW Investment Management is now responsible for the fund’s management and oversight, relieving RiverPark Funds Trust of those duties.
On May 15, RiverPark Funds Trust sent a letter to shareholders asking them to approve the reorganization. The trust’s board called for a special meeting for June 26 to finalize the move, which had been recommended by RiverPark Advisors and the RiverPark board “after careful consideration,” according to the letter. The Mutual Fund Observer’s David Snowball reported earlier this year that the fund had “quietly moved.”
Following the June 26 approval, all of the RiverPark/Gargoyle Hedged Value Fund’s assets were transferred to the TCW/Gargoyle Hedged Value Fund. The TCW fund also assumed all of the RiverPark fund’s liabilities at that time. Retail-class shareholders of the old fund were issued N-class shares of the new fund, and the old fund’s institutional-class shares were replaced by I-class shares in the new fund, with the net-asset value of each shareholder’s shares unchanged.
The newly christened TCW/Gargoyle Hedged Value Fund will use the ticker symbol “TFHVX.” The move from RiverPark to TCW wasn’t the fund’s first transition – three years ago, RiverPark converted mutual fund’s predecessor from a hedge fund. According to Mutual Fund Observer, the fund’s “composite mutual-hedge fund record” earned it a five-star rating from Morningstar, and it had returned 14% annually since its first conversion, from hedge fund to ’40 Act fund.
Just like the RiverPark mutual- and hedge-fund versions that preceded it, the TCW/Gargoyle Hedged Value Fund will pursue long-term capital appreciation while seeking to expose investors to less risk. Its investment strategy involves a combination of investing in undervalued securities and selling index call options to generate income and improve the risk/return profile of the fund.