NEW YORK, May 08, 2017 (GLOBE NEWSWIRE) -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC notifies investors that a
class action lawsuit has been filed against Catalyst Hedged Futures Strategy Fund Class A, Class C and Class I (“Catalyst
Futures Fund” or the “Company”) (Nasdaq:HFXAX) (Nasdaq:HFXCX) (Nasdaq:HFXIX) securities and certain of its officers, on behalf of a
class who purchased Catalyst Futures Fund securities between November 1, 2014 and April 28, 2017 (the "Class Period"). Such
investors are encouraged to join this case by visiting the firm’s site: www.bgandg.com/hfxax.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the
Securities Exchange Act of 1933.
The complaint alleges that Catalyst Futures Fund was recognized as a mutual fund, defendants marketed and sold shares of the
Fund as low-risk, low-volatility investment with minimal correlation to the U.S. equity market. The Prospectuses for the Fund
stated that the Fund “places a strong focus on risk management that is intended to provide consistency of returns and to mitigate
the extent of losses …. [T]he Fund employs strict risk management procedures to adjust portfolio exposure as necessitated by the
changing market conditions.” The complaint alleges that these statements and others like them in the Fund’s Prospectuses and
Registration Statements issued in connection with the offerings of Fund shares were inaccurate statements of material fact because
they did not disclose that the Catalyst Futures Fund continued to invest as if it were a hedge fund, taking massive directional
bets against U.S. stock market indices through complex derivative instruments, thereby exposing investors to the heightened risk of
loss capital.
Subsequently, in February 2017, the Catalyst Futures Fund dropped in the net asset value ("NAV") of Fund shares, losing $600
million over a few days’ time. Between February 2 and February 15, 2017, the NAV for the Fund's Class A shares dropped over
15%, from $10.59 per share to $8.98. Numerous news sources started reporting on the erosion in Fund value, describing the
loss as a "melt-down" and saying that the Fund was "blowing up." According to the complaint, Catalyst Futures Fund had taken
out substantial option contracts that effectively "shorted" the S&P 500, consequently the Fund had made a directional bet that
the general equity market would not rise significantly in value. As the market rallied around the time these options were set
to expire in mid-February 2017, the Fund experienced rapidly accelerating losses, as it had little time for the market to reverse
itself and for the bet to return to profitability. As these undisclosed risks occurred, investors suffered hundreds of
millions of dollars in losses, with the value of Fund assets dropping over $1 billion since early 2017. Between February 2,
2017 and March 15, 2017, the NAV of the Fund's Class A shares, Class C shares and Class I shares has dropped roughly 21%, or $2.22
per share, $2.16 per share and $2.23 per share, respectively.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm’s site:
www.bgandg.com/hfxax or you may contact Peretz
Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you
suffered a loss in Catalyst Futures Fund you have until June 27, 2017 to request that the Court appoint you as lead
plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of
litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class
action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities
arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact: Bronstein, Gewirtz & Grossman, LLC Peretz Bronstein or Yael Hurwitz 212-697-6484 | info@bgandg.com
