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Castlerigg Equity Event and Arbitrage Fund
April 2015
Investing in hard catalyst corporate events including corporate activism, restructurings, recapitalizations and spinoffs,
in addition to announced merger arbitrage deals, searching for attractive hostile and unsolicited transactions.
Who is Sandell Asset Management?
Sandell Asset Management Corporation (the “Adviser”) is a leading private, alternative asset
management firm with a strong focus on equity special events and credit opportunities. The Adviser’s
investment philosophy is focused on preservation of capital, and rigorous risk management on position
and portfolio levels. The firm was founded in 1998 by Tom Sandell. The firm has offices and affiliates
in New York and London. In addition to an international research team operating in both offices, the
firm has a robust operations and administration architecture including fund accounting and
administration, risk management, legal and compliance, information technology and proprietary
programming, investor relations and corporate administration.
Why Invest in the Castlerigg Equity Event and Arbitrage Fund?
The Fund seeks capital growth over full market cycles by finding market dislocations and purchasing
securities of companies where we have identified a hard catalyst event that we believe will unlock
value to shareholders. The Fund invests in middle market capital companies as we believe the
risk/reward spectrum is more favorable. Our experience in global developed markets provides
investors with a universe that is intended to (1) reduce reliance upon single geographic regions
(predominately investing in North America, West Europe, UK, and Australasia); and (2) provide access
to less crowded and inefficient markets that we believe has the potential to provide higher returns due
to less competition.
Key Highlights
Tom Sandell
Founder and CEO
Tom Sandell founded Sandell
Asset Management in January
1998 and is the Chairman and
CEO. He has been involved in
the securities industry since May
1986. Mr. Sandell joined Bear
Stearns in 1989 to establish the
proprietary international risk
arbitrage operation. When he left
in 1997, he was a Senior
Managing Director and co-head
of the Risk Arbitrage department.
He received a BS in International
Business Administration and
Economics
from
Uppsala
University (Sweden) and an MBA
in Finance from Columbia
Business School.
Consistent
and TimeTested
Strategy
 17 years of experience managing event-driven strategies across merger arbitrage,
equity event situations and credit oriented opportunities
Accomplished
Team
 Chief Executive Officer and Portfolio Manager, Tom Sandell, founded Sandell Asset
Management in 1998, and has been investing in global corporate events since the
late 1980s
 Focus on global, hard catalyst corporate events
 Combine bottom-up and top-down analysis to create a portfolio to pursue low
downside volatility
 The firm employs an experienced team of 27 individuals including 9 dedicated
investment professionals
 Global presence with offices in New York and London
Adviser
Objectives
 Preservation of capital while seeking capital growth and rigorous risk management
on position and portfolio levels
 Seek to generate consistent returns that are largely independent of market
movements
You should consider the Fund's investment objectives, risks, charges and expenses carefully before
you invest. Information about these and other important subjects is in the Fund's summary prospectus
and prospectus, which you should read carefully before investing. For more complete information, visit
www.altmfx.com or contact your investment professional for a current summary prospectus or
prospectus.
Castlerigg Equity Event and Arbitrage Fund
Investment Approach
Identify the most fundamentally attractive
hard-catalyst corporate events globally
Dynamic asset allocation process driven
by the fundamental outlook as well as the
opportunity set within each sub-strategymerger arbitrage and equity event
Hedge equity market exposure when and
where necessary to create returns typically
independent of systematic market drivers
Employ a best ideas approach – no predetermined asset allocation to strategy or
geography
Institutional infrastructure and robust
risk management, overseen by CFO
Maintain a global mandate allowing
access to less crowded and inefficient
markets that potentially provide higher
margins due to less competition
April 2015
Fund Facts & Information as of
04/01/15
Fund Launch Date: 2/2/2015
Minimum initial
investment
$25,000 (Institutional
Shares)
$2,000 (Investor Shares)
ITICKER
EVNTX (Institutional
Shares)
EVNIX (Investor Shares)
What is Equity Event Investing?
What is Arbitrage Investing?
Equity Event Investing entails investing in companies subject to
extraordinary corporate events such as takeovers, tender offers, spinoffs and corporate restructurings in an effort to profit from the pricing
inefficiencies that may occur, before or after such a transaction, due to
the risks associated with the particular event.
Arbitrage is a sub-set of Equity Event Investing whereby the Fund will
simultaneously buy and sell the stocks of two merging companies in an effort
to profit from the price differential or “spread” that normally exists between
the market price of a security after the announcement of a merger, and the
expected value of the companies at the closing of the transaction.
Fund Facts Disclosure
As of 12/31/14, Sandell Asset Management Corp, the Fund’s Advisor,
and its affiliates managed $860 million in assets. The Fund’s portfolio is
actively managed, and its composition will differ over time. The Fund is
distributed by Foreside Fund Services, LLC
Special Considerations
Investors in mutual funds should be able to withstand short-term
fluctuations in the equity markets and fixed income markets in return for
potentially higher returns over the long term. The value of portfolios
change every day and can be affected by changes in interest rates,
general market conditions and other political, social and economic
developments, as well as specific matters relating to the issuers and
companies in whose securities the Fund invests. The value of a Fund’s
investments in foreign securities may fall due to adverse political, social
and economic developments abroad and due to decreases in foreign
currency values relative to the U.S. dollar. The Fund may utilize
derivatives or engage in shorting strategies which may accelerate the
velocity of potential losses. Shares of mutual funds are not deposits or
obligations of any bank, government agency, are not guaranteed by the
FDIC or any other agency, and involve investment risks such as the
possible loss of the principal invested amount. Diversification does not
ensure gains nor guarantee against loss.
Risk Information
Arbitrage Transaction Risk. Event-driven strategies typically assume that
certain extraordinary events such as mergers and reorganizations will
occur, creating an arbitrage opportunity. If such transactions do not occur
or are renegotiated, the Fund may realize reduced returns or losses as it
unwinds failed positions.
Derivative Instruments Risk. Derivative instruments, including futures,
options and swaps, may entail investment exposures that are greater than
their cost would suggest, meaning that a small investment in a derivative
could have a large potential impact on the performance of the Fund. The
Fund could experience a loss if derivatives do not perform as anticipated,
are not correlated with the performance of other investments which they
are used to hedge, or if the Adviser is unable to liquidate a position
because of an illiquid secondary market. Moreover, the Fund may be
exposed to counterparty risk on derivatives that are traded in the over-thecounter market.
Foreign Securities Risk. Investments in foreign securities may involve
greater risks compared to domestic U.S. investments, including due to
different regulatory and accounting requirements, and less publicly
available information. These risks are heightened for investments in
emerging market issuers. Foreign securities are often denominated in a
currency other than the U.S. dollar, which will subject the Fund to
Currency Exchange Rate Risk.
Hedging Risk. Hedging against a decline in value of a Fund position does
not eliminate fluctuations in the values of those Fund positions or prevent
losses if the values of those positions decline.
High-Yield Securities Risk. Investments in “high yield securities” or “junk
bonds” are inherently speculative and have a greater risk of default than
investments in investment grade fixed-income securities.
Leveraging Risk. Certain transactions the Adviser may undertake,
including futures contracts and short positions in financial instruments,
may give rise to a form of leverage. Leverage may create investment
exposures greater than the total net asset value of the Fund. Leverage
can make the Fund more volatile. Relatively small market movements
may result in large changes in the value of a leveraged investment and
the Fund.
New Adviser Risk. The Adviser does not have experience managing a
registered investment company.
New Fund Risk. The Fund is newly formed. Investors in the Fund bear the
risk that the Adviser may not be successful in implementing the Fund's
investment strategy and the Fund may not achieve scale.
Short Selling Risk. Short selling entails the risk of an unlimited increase in
the market price of the security sold short, which could result in a
theoretically unlimited loss. Short sale strategies are often categorized as
a form of leveraging or speculative investment. Before the Fund replaces
a borrowed security, it is required to designate on its books cash or liquid
assets as collateral to cover the Fund's short position, marking the
collateral to market daily. This obligation limits the Fund's investment
flexibility, as well as its ability to meet redemption requests and other
current obligations.
Small and Mid Capitalization Company Risk. Investments in small and
mid capitalization companies may be less liquid, and their securities’
prices may fluctuate more than those of larger, more established
companies.