NEW YORK Oct 5 RiverNorth Capital Management on
Wednesday said it has partnered again with Jeffrey Gundlach's
DoubleLine Capital to launch a second portfolio, the
RiverNorth/DoubleLine Strategic Opportunity Fund.
The closed-end fund, which debuted last week on the NYSE
under the symbol "OPP," will invest in fixed-income securities
and tactically invests in closed-end funds. RiverNorth serves as
the fund's investment adviser and DoubleLine serves as
sub-adviser to the fund.
Since December 2010, RiverNorth and DoubleLine have
co-managed an open-end mutual fund, the RiverNorth/DoubleLine
Strategic Income Fund (RNSIX).
Patrick Galley, RiverNorth's chief investment officer, said
in a statement, about the RiverNorth/DoubleLine Strategic
Opportunity Fund: "The fund will leverage RiverNorth's and
DoubleLine's long performance track records across market cycles
and history of working together to capitalize on market
inefficiencies in both the closed-end fund and fixed income
The fund seeks to achieve its investment objective of
current income and overall total return by allocating among two
principal investment strategies: the Tactical Closed-End Fund
Income Strategy, managed by RiverNorth, and the Opportunistic
Income Strategy, managed by DoubleLine.
Jeffrey Gundlach, CEO and chief investment officer of
DoubleLine, said: "Our respective teams have experience not only
in bottom-up security selection but also in working successfully
together to manage sector allocations to tap undervalued and
avoid overvalued market segments."
The fund raised gross proceeds of approximately $210 million
in its initial public offering of shares of common stock and,
should the underwriters exercise the overallotment option in
full, which may or may not occur, the fund will raise gross
proceeds of approximately $242 million.
(Reporting By Jennifer Ablan; Editing by Bernard Orr)