The Pennsylvania Avenue Funds Launch Event-Driven Fund.

WASHINGTON, Jan. 7 /PRNewswire/ -- The Pennsylvania Avenue Event-Driven Fund, a series of The Pennsylvania Avenue Funds, has launched a new mutual fund that offers investors the ability to invest in event-driven strategies.

Thomas Kirchner, CFA, president and portfolio manager of the fund, emphasizes that there are not many options outside the hedge fund universe for investors to invest in multiple event-driven strategies through a single, regulated mutual fund.

 
  "We cater primarily to investors interested in alternative strategies but 
  concerned about the risks of unregulated hedge funds. In addition, because 
  we invest directly in securities rather than other funds, we expect to 
  have lower expenses than so-called 'retail hedge funds,' which can incur 
  multiple layers of fees," says Kirchner. 
 
 

The fund uses four event-driven strategies, and the allocation of fund assets to each of these strategies will vary over time and depend upon market conditions:

 
  * Merger arbitrage: The Fund invests in the securities of companies 
    subject to publicly announced mergers, takeovers, tender offers, and 
    other corporate reorganizations. 
  * Capital structure arbitrage: The Fund invests in different securities 
    issued by the same issuer whose different securities are mispriced 
    relative to each other. 
  * ...