Welcome to our dedicated page for First Trust High Long/Short news (Ticker: FSD), a resource for investors and traders seeking the latest updates and insights on First Trust High Long/Short stock.
Overview of FSD
First Trust High Inc Long/Short (FSD) is a specialized closed-end fund that employs a disciplined long/short investment strategy to target high income opportunities. This fund is managed by First Trust Advisors L.P., a respected entity in the asset management industry, ensuring that its strategy is anchored in rigorous market analysis and robust risk management. By integrating both long and short positions within its portfolio, FSD aims to deliver consistent income while mitigating volatility, making it a notable option for investors seeking a balance of income generation and risk reduction.
Investment Strategy and Business Model
The core business model of FSD revolves around its unique long/short approach. This method involves taking long positions in securities that offer promising dividend yields and income potential, while simultaneously employing short positions to offset risk and capitalize on market inefficiencies. With a focus on high income strategies and a disciplined methodology, the fund emphasizes the importance of understanding what you own and investing with a long-term perspective. This balanced strategy is enhanced by periodic re-balancing and tax-efficient practices to maintain a resilient portfolio structure.
Industry Position and Market Relevance
Operating within the competitive landscape of closed-end funds and asset management, FSD distinguishes itself through its commitment to disciplined investment practices and innovative portfolio management. The fund’s approach to aligning investment decisions with detailed market research and risk control measures underpins its reputation for expertise and authoritativeness in the sector. FSD’s reorganization into the broader investment platform (ACP) underscores its strategic aim to achieve greater economies of scale, enhanced liquidity, and improved marketability, positioning it as a fund with a clear and methodical investment mission.
Core Principles and Operational Excellence
At the heart of FSD's operations are principles such as investing for the long term, maintaining discipline through regular re-balancing, and controlling taxes to optimize returns over time. The focus on these fundamental tenets reflects a deep understanding of market dynamics and reinforces the fund's commitment to providing reliable investment solutions. The governance provided by First Trust Advisors L.P. and First Trust Portfolios L.P. contributes significantly to its robust operational framework, ensuring that each decision is underpinned by thorough market insights and expert analysis.
Risk Management and Strategic Adaptation
In the realm of investment management, risk is an inherent element. FSD employs a multifaceted risk management framework designed to address market volatility through its long/short strategy. By actively monitoring and adjusting its investment positions, the fund seeks to protect investor capital and enhance the potential for income generation. This strategic adaptation is a critical component of the fund's operational excellence and provides investors with a structured approach that is both methodical and responsive.
Conclusion
In summary, First Trust High Inc Long/Short (FSD) represents a well-structured closed-end fund that leverages seasoned investment strategies to manage income and risk effectively. With its disciplined approach, expert management by First Trust Advisors L.P., and focus on long-term value creation, FSD offers a nuanced investment solution that stands out in the crowded field of asset management. Its business model, underpinned by industry best practices and detailed market analysis, provides a comprehensive framework for investors seeking a balanced, income-oriented investment vehicle.
abrdn Income Credit Strategies Fund (NYSE:ACP) and First Trust High Income Long/Short Fund (NYSE:FSD) have completed their reorganization on July 19, 2024. FSD shareholders received ACP common shares with an equivalent net asset value. The conversion ratio was 1.893482, with ACP's NAV per share at $6.6326 on the closing date. No changes are planned for ACP's investment objectives, strategies, or policies post-reorganization.
abrdn, managing over $472.8 billion in assets as of March 31, 2024, welcomes FSD shareholders to its fund family. The company emphasizes its global presence and commitment to creating long-term value for clients. First Trust Advisors LP, FSD's former advisor, manages approximately $228 billion in assets as of June 30, 2024.
The abrdn Income Credit Strategies Fund (NYSE:ACP) has announced the closing date for its acquisition of assets from the First Trust High Income Long/Short Fund (NYSE:FSD). The reorganization, approved by FSD shareholders, will finalize on July 19, 2024, assuming all customary conditions are met. This reorganization will result in the cessation of FSD shares trading on the NYSE after the market closes on July 19, 2024. FSD shareholders will receive ACP shares equivalent to the net asset value of their FSD holdings.
Post-reorganization, ACP's combined net assets are projected to be approximately $765.3 million. The merger aims to provide shareholders with benefits such as economies of scale, increased liquidity, and marketability. Additionally, ACP announced a distribution payment of $0.10 per share, payable on July 31, 2024, to shareholders of record as of July 19, 2024.
First Trust Advisors L.P. (FTA) has announced that the shareholders of First Trust High Income Long/Short Fund (NYSE: FSD) have approved its reorganization with and into the abrdn Income Credit Strategies Fund (ACP). This closed-end fund merger is expected to close on July 19, 2024, subject to customary conditions. Upon completion, FSD's assets will transfer to ACP, and its liabilities will be assumed by ACP. Shareholders of FSD will receive ACP shares equivalent to their FSD holdings' net asset value. The reorganization is anticipated to be tax-free. FTA manages approximately $226 billion in assets as of May 31, 2024.
First Trust High Income Long/Short Fund (NYSE: FSD) announced its monthly common share distribution of $0.105 per share for July 2024. The distribution is payable on July 15, 2024, to shareholders of record as of July 1, 2024, with an ex-dividend date of July 1, 2024. The distribution rate is 10.05% based on the June 18, 2024 NAV of $12.54 and 10.42% based on the June 18, 2024 closing market price of $12.09. The distribution will be paid entirely in cash and will consist of net investment income, return of capital, and potentially net short-term realized capital gains. The final source and tax status will be confirmed post-2024.
The abrdn Income Credit Strategies Fund (NYSE:ACP) announced the approval of the reorganization of the First Trust High Income Long/Short Fund (NYSE:FSD) into ACP. The reorganization is expected to complete by the end of July 2024, subject to customary closing conditions. Following the reorganization, FSD shareholders will receive new ACP shares based on the net asset values. The combined net assets will approximate $765 million. Benefits include economies of scale, increased fund viability, liquidity, and marketability.
First Trust Advisors announced the outcome of a joint special meeting of shareholders for First Trust High Income Long/Short Fund (FSD) and First Trust/abrdn Global Opportunity Income Fund (FAM), held on May 30, 2024. Shareholders have approved the reorganization of FSD with and into abrdn Income Credit Strategies Fund (ACP), with the transition expected to close by July 2024. Upon completion, FSD's assets will transfer to ACP, and FSD shareholders will receive ACP shares of equal value. However, the special meeting for FAM has been adjourned to June 18, 2024, to allow more time for shareholder voting.
First Trust High Income Long/Short Fund (NYSE: FSD) declared its monthly common share distribution of $0.105 per share for June 2024, payable on June 17, 2024, to shareholders of record as of June 3, 2024. The ex-dividend date is June 3, 2024. The distribution rates are based on the May 17, 2024, NAV of $12.57 (10.02%) and the closing market price of $11.95 (10.54%). The distribution may consist of net investment income, return of capital, and net short-term realized capital gains. The Fund primarily invests in a diversified portfolio of high-yield corporate fixed-income securities from U.S. and foreign issuers, including emerging markets. The Fund's advisor, First Trust Advisors L.P., oversees assets of approximately $218 billion. MacKay Shields serves as the sub-advisor, managing around $140.7 billion in assets. The Fund is subject to various risks including market, credit, interest rate, and investment risks in high-yield and non-U.S. securities.
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