4:00pm EST on 02 Jun 2004
Investment Strategy


How To Invest
Net Asset Values
Voting Record
Press Room
What's New?


The Pennsylvania Avenue Event-Driven Fund
A Series of The Pennsylvania Avenue Funds

The Fund has been established recently and was first offered to the public on November 21, 2003.

The Fund seeks to achieve capital growth by engaging in investment strategies related to corporate 'events', such as mergers, reorganizations, bankruptcies or proxy fights. It invests in the securities of companies of any size and uses derivatives both as a substitute for investing in the underlying securities, as well as for hedging purposes.

Under normal market conditions, the Fund invests at least 80% of its assets in the securities of companies which are undergoing a corporate 'event'. The following four particular strategies are exclusive examples of such 'events':

  • 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.
  • Distressed securities investments:

    The Fund invests in distressed securities, which are securities of companies who are in or near bankruptcy or whose securities are otherwise undergoing extreme financial situations that put the continuation of the issuer as a going concern at risk.
  • Proxy fight investments:

    The Fund invests in securities of companies which are subject to a proxy fight over control over the company.

As compared with conventional investing, the Adviser considers the Fund's investment strategies to be less dependent on the overall direction of stock prices.

The Pennsylvania Avenue Event-Driven Fund is offered only by prospectus. The prospectus contains more complete information about the Fund, including fees, expenses and risk factors. You should read it carefully before investing or sending money. The Fund is not available to residents of certain jurisdictions or countries.
Click here to get a prospectus

2003-2004 The Pennsylvania Avenue Funds. All rights reserved.
Thursday 03rd of June 2004 12:08:10 PM

Read Our 2003 Annual Report

Read the annual report here

Updated Prospectus is now available

Read the prospectus here