Lucerne Capital Management announces planned launch of European Income Select Fund with Covered Call Strategy

Greenwich-Based Investment Firm Introduces Actively Managed Fund targeting European Blue-Chip Equities with Dynamic Options Overlay to Seek High Monthly Income Targeting 11% Annualized Distribution Yield

GREENWICH, Conn., November 4, 2025 – Lucerne Capital Management, L.P., a specialized investment firm with over two decades of European equity investing, today announced the launch of the Lucerne European Income Select Fund (LEISF), an actively managed strategy seeking to generate high monthly income for institutional investors through a diversified portfolio of European blue-chip equities combined with an active covered call overlay.

The Fund, which is expected to begin operations in late 2025, plans to invest in 30 equal-weighted positions across Europe's largest and most liquid equities while systematically selling out-of-the-money call options to generate premium income. The strategy seeks to deliver enhanced income with lower volatility than major European indices while maintaining a strong focus on capital preservation through active risk management.

The launch seeks to address growing institutional investor demand for non-correlated income solutions and portfolio diversification beyond U.S. equity markets. For investors seeking consistent monthly distributions, geographic diversification, and capital preservation in today's challenging yield environment, LEISF offers a disciplined approach combining fundamental equity analysis with systematic options management. European equities currently trade at attractive relative valuations, with the Euro STOXX 50 trading at approximately 17x forward price-to-earnings versus the S&P 500's 30x multiple, while European companies have historically offered higher dividend yields than their U.S. counterparts.

LEISF seeks to employ a dynamic covered call approach, selling monthly options on 50-80% of portfolio holdings via Eurex, London Stock Exchange, and U.S. ADR markets. The Fund's portfolio seeks to span France/Germany (40%), the United Kingdom via ADRs (20%), Switzerland/Nordics (20%), and other European markets (20%), with diversification across Growth (33%), Value (40%), and Hybrid (27%) investment styles.

"We are launching the European Income Select Fund to address a critical gap in the market for institutional investors seeking consistent, high-quality income without sacrificing capital preservation," said Pieter Taselaar, Founding Partner and Portfolio Manager of Lucerne Capital Management. "After 25 years of investing in European equities, we believe the current valuation environment, combined with our fundamental research and options management capabilities, creates a compelling opportunity to deliver enhanced income through a disciplined, risk-managed approach." Lucerne is partnering with Kim Strandenaes, the former Head of Derivatives for Danske Bank in Norway, on the options overlay strategy.

The Fund will incorporate multiple layers of risk management, including position-level drawdown controls, volatility caps that adjust option coverage during market stress, and the flexibility to shift from single-stock calls to index options when portfolio holdings experience correlated pressure. This adaptive framework is designed to protect capital while maintaining income generation across various market conditions.

"European equities offer institutional investors meaningful diversification from U.S. market concentration risks, particularly in the technology sector," added Thijs Hovers, Partner and Portfolio Manager at Lucerne Capital Management. "Our strategy leverages Europe's deep liquidity and active options markets to create a reliable income stream that complements traditional fixed-income allocations."

The Fund utilizes bottom-up fundamental analysis focusing on companies with strong return on equity, sustainable dividend yields, and active options markets. The strategy will target all holdings that maintain substantial daily trading volumes to ensure liquidity and efficient options execution. Portfolio selection incorporates valuation and growth metrics, dividend sustainability analysis, and assessment of underlying options market attractiveness.

Monthly distributions are derived from both underlying dividend income and collected option premiums, with a focus on earned income to limit return of capital. The Fund offers both Euro and U.S. Dollar denominated share classes for institutional investors.

About Lucerne Capital Management

Founded in 2000, Lucerne Capital Management, L.P. is a Greenwich, Connecticut-based investment firm specializing in European equity strategies. Led by seasoned professionals with extensive backgrounds at ABN AMRO and a focus on fundamental research and portfolio management, Lucerne brings over two decades of experience navigating European markets to deliver differentiated investment solutions for institutional clients.

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For More Information

Institutional investors interested in learning more about the Lucerne European Income Select Fund, see our introduction video or contact us:

Thijs Hovers

Lucerne Capital Management, L.P.

Email: th@lucernecap.com

Phone: +1 (203) 983-4400

General Inquiries: irelations@lucernecap.com

73 Arch Street

Greenwich, Connecticut 06830