ABSOLUTE Funds
Absolute CEF Opportunities [ACEFX]
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Inception Date:
October 22, 2024 strategy and manager change.
July 27, 2005 predecessor fund inception.
Structure:
Open-End Mutual Fund
Ticker:
ACEFX
Share Classes:
I-Share
Fund Administration:
Ultimus Fund Solutions, LLC
Distributor:
Ultimus Fund Distributors, LLC
Absolute CEF Opportunities Fund seeks to achieve long-term capital appreciation with an emphasis on absolute (positive) returns and low sensitivity to traditional financial market indices such as the Standard & Poor’s 500® Index.
The Fund uses a skill-based, research-driven investment selection process combined with a proprietary valuation model to identify pricing anomalies for investing in event-driven, relative-value and arbitrage ideas. Fund exposures change opportunistically by taking advantage of wide CEF premium and discount mispricings through long and short positions across a variety of asset classes. Event-driven opportunities utilize both mispricings and catalysts for capitalizing on various CEF corporate actions, mergers and institutional ownership inefficiencies.
ACEFX: Institutional Share Class
(See the Absolute Funds Prospectus for details and fee information)
Portfolio Management
Portfolio Manager Kevin McNally and Co-Portfolio Manager Patty Santorella joined Absolute Advisers in January 2024 to form Absolute’s closed-end fund investment team. Prior to coming to Absolute, the team worked at Clough Capital Partners, where Kevin was a co-founder of Finn. Finn, which was founded in 2014 is a long/short hedge fund with a variable net exposure, two institutional separate accounts run 120% long/20% short, and a sub-advisory account run market neutral.
With a combined 40+ years of closed end fund experience, the managers seek to capitalize on vast inefficiencies in the CEF marketplace, which consists of over 400 listed U.S. CEFs, representing $400 billion in assets under management. Those inefficiencies create event-driven and relative-value opportunities long and short.
Kevin McNally, Head Portfolio Manager, Absolute Advisers
- Kevin McNally has over 33 years of experience focusing solely on closed-end funds and exchange-traded funds
- Joined Absolute Investment Advisers in January 2024
- Launched Clough Finn Investment Partners in 2014, a long/short hedge fund with a variable net exposure, two institutional separate accounts run 120% long/20% short, and a sub-advisory account run market neutral
- Director of Closed-End Funds at ALPS Fund Services, Inc. from 2003 to 2014, launching $13 billion in total assets of CEFs
- Director of Closed-End Fund and ETF Research at Smith Barney; Director of Closed-End Fund and ETF Marketing at Morgan Stanley Dean Witter Discover & Co.; Vice President in mutual fund research specializing in closed-end funds at Merrill Lynch, Pierce, Fenner, & Smith, Inc.; Manager of the Closed-End Fund Marketing Department at Prudential Securities
Patty Santorella, Co-Portfolio Manager, Head of Trading Strategies, Absolute Advisers
- Patty Santorella is responsible for trading strategies and portfolio management for Absolute’s Finn Strategies Group.
- Joined Absolute Investment Advisers in January 2024
- Managing Director and Head of Trading at Beryl Capital Management, LLC, an event driven hedge fund focusing on merger arbitrage for five years
- Vice President and Head of Operations at Clough Capital Partners, LP for over nine years
Fund Videos
RIA Channel Webinar Replay: Hedged Credit & CEFs (Closed-End Funds) -Event Driven and Relative Value Opportunities
August 2025 (67 min – FINANCIAL PROFESSIONALS ONLY)
CHRIS O’GRADY, Director, Institutional Marketing
NATHAN HOUSER, Portfolio Management & Research
KEVIN MCNALLY, Portfolio Manager, CEF Strategies
Portfolio Manager Conversation
June 2025 (7 min)
KEVIN McNALLY- Portfolio Manager
Topics Covered:
1:00: Security Selection & Finding Opportunities
3:13 Value of Extensive Experience
4:30 What is attractive about the current environment?
Fund Literature
Intro Presentation - Coming Soon!
Summary Prospectus
Prospectus
Absolute Funds Statement of Additional Information (SAI)
Shareholder Reports
Annual Report – Period Ending 3/31/25
Financial Statements – 3/31/25
Mutual Fund Holdings – Period Ending 12/31/23
Financial Statements – 9/30/24
Portfolio Commentary
Portfolio Commentary for Absolute CEF Opportunities is provided on a regular basis and can be found below along with other “discussion” articles that are relevant to the Fund. Additional information can be found within the shareholder letters in the Annual and Semi-Annual Reports. If you are a financial adviser and would like to be added to our e-mail distribution list, use the form at the bottom of the page or contact us by email.
- Q225 Portfolio Commentary
“Special situations still dominated the top performers list, in Q2. The top performer for the quarter is a CEF that is conducting a very large tender offer. The good news for ACEFX is that the tender still hadn’t closed as of the end of the quarter. That CEF was joined by three rights offerings (one was in the top three contributors) that closed before the end of June. In total for the quarter, we participated in five rights offerings, three tender offers, and four funds that converted to either an open-end fund or an ETF structure. All in all, that’s a very healthy number of special situations, in our view. …” [read all] - Q125 Portfolio Commentary
Fund Distribution Information
The Fund distributes income semi-annually in June and December and distributes long and short-term capital gains in December. This page will be updated with distribution amounts when the data becomes available.
If you are a financial adviser and would like to be added to our e-mail distribution list contact us by e-mail.
2025 Distributions
| December – Income & Capital Gains Distributions per share. |
|||||||
| Class | Income | Long-Term Capital Gains | Short-Term Capital Gains | ||||
| Class | ACEFX | Income | TBD | Long-Term Capital Gains | TBD |
Short-Term Capital Gains | TBD |
|---|---|---|---|---|---|---|---|
| Class | Ex Date | Income | TBD | Long-Term Capital Gains | TBD | Short-Term Capital Gains | TBD |
| Class | Record Date | Income | TBD | Long-Term Capital Gains | TBD | Short-Term Capital Gains | TBD |
| June – Income Distributions per share. |
|||
| Class | Income | ||
| Class | ACEFX | Income | $0.0049 |
|---|---|---|---|
| Ex Date | Income | 6/30/25 | |
| Class | Record Date | Income | 6/27/25 |
Investing in the Fund
Purchasing Through a Financial Adviser:
Absolute CEF Opportunities may serve as an important piece of a diversified portfolio. We encourage investors to consult their financial advisers for guidance on asset allocation and the role of the Fund. Financial Advisers should contact us directly for information on the Fund and how it may be purchased. Go to Contact Information Page
Direct Investment in the Fund:
Investors may purchase the Fund directly from the Fund using the applications below. Please complete the applications and follow the purchasing instructions. For additional information, please call the Fund’s shareholder servicing department at 1-888-99-ABSOLUTE
Fund Risks & Disclosure
Past performance does not guarantee future results. The Fund’s net asset value and investment return will fluctuate based upon changes in the value of its portfolio securities. There is no assurance that the Fund will achieve its investment objective, and an investment in the Fund is not by itself a complete or balanced investment program. For a complete description of the Fund’s principal investment risks please refer to the prospectus.
Asset allocation decisions may not always be correct and may adversely affect Fund performance. The Fund may leverage transactions which include selling securities short as well as borrowing for other than temporary or emergency purposes. Leverage creates the risk of magnified capital losses. Diversification does not prevent loss or enhance returns. Foreign investments present additional risk due to currency fluctuations, economic and political factors, government regulations, differences in accounting standards and other factors. Investments in emerging markets involve even greater risks. The Fund is actively managed and may experience high turnover. This may cause higher fees, expenses and taxes, which could detract from Fund performance.
These views are subject to change at any time based on market and other conditions, and Absolute Investment Advisers disclaims any responsibility to update such views. No forecasts can be guaranteed. These views may not be relied upon as investment advice or as an indication of trading intent on behalf of any Absolute Investment Advised investment product.