Rational Funds Introduces the Rational Hedged Return Fund
December 14 2017 - 7:00AM
Business Wire
Rational Funds, a family of funds rooted in the investment
philosophy of applying a rational approach to investing, recently
announced the conversion of the Rational Real Strategies Fund into
the Rational Hedged Return Fund (Tickers: HRSAX, HRSFX, HRSTX).
HRSTX is now sub-advised by Warrington Asset Management LLC and
implements an options-based strategy that primarily invests in long
and short call and put options on futures contracts on the S&P
500 Index.
“The Rational Hedged Return Fund relies on a proven investment
strategy previously offered only as a separately managed account,”
commented Scott Kimple, Portfolio Manager of HRSTX. The Fund seeks
total return consisting of long-term capital appreciation and
income. The Fund seeks to achieve its objective through premium
collection from options, volatility trading designed to hedge or
profit from either an increase or a decrease in S&P 500 index
volatility, and trend following.
“We believe that the traditional asset allocation model of
long-only stocks and bonds does not adequately position investors’
portfolios for the risks and opportunities in today’s global
markets,” said Jerry Szilagyi, CEO of Rational Funds. “We are
excited to partner with Warrington Asset Management to manage the
Rational Hedged Return Fund with a strategy designed to produce
returns that are not correlated with equity market returns.”
For more information on the Fund and on Rational Funds, please
visit: www.rationalmf.com or call (800) 253-0412.
About Rational Funds
Rational Funds is a family of funds rooted in the investment
philosophy of applying a rational approach to investing. Rational
Funds currently offers seven mutual fund products, which employ
rigorous research backed by sound academic theory, and a
disciplined and systematic investment approach. The funds strive to
deliver superior risk-adjusted returns, at the apex of successful
modern portfolio strategies for today’s investor. For more
information on Rational Funds and its mutual fund products, please
visit: www.rationalmf.com.
Disclosures:
Investors should carefully consider the investment
objectives, risks, charges and expenses of the Rational Funds. This
and other important information about the Fund is contained in the
prospectus, which can be obtained by calling (800) 253-0412 or
at www.RationalMF.com. The prospectus should be read
carefully before investing. The Rational Funds are distributed by
Northern Lights Distributors, LLC member FINRA/SIPC.
Rational Advisors, Inc. is not affiliated with Northern Lights
Distributors, LLC.
Investing in the Fund carries certain risks. The value of the
Fund may decrease in response to the activities and financial
prospects of an individual security in the Fund’s portfolio. The
Fund’s use of stock index futures involves risks different from, or
possibly greater than, the risks associated with investing directly
in securities and other traditional investments. These risks
include (i) leverage risk (ii) risk of mispricing or improper
valuation; and (iii) the risk that changes in the value of the
futures contract may not correlate perfectly with the underlying
index. Investments in futures involve leverage, which means a small
percentage of assets invested in futures can have a
disproportionately large impact on the Fund. Hedging is a strategy
in which the Fund uses options or futures to offset the risks
associated with other Fund holdings. There can be no assurance that
the Fund’s hedging strategy will reduce risk or that hedging
transactions will be either available or cost effective. The Fund
is not required to use hedging and may choose not to do so. The use
of leverage by the Fund, such as the use of options or futures,
will cause the Fund to incur additional expenses and magnify the
Fund's gains or losses. There are risks associated with the sale
and purchase of call and put options. As the buyer of a put or call
option, the Fund risks losing the entire premium invested in the
option if the Fund does not exercise the option. As a seller
(writer) of a put option or call option, the Fund will lose money
if the value of the stock index futures falls below or rises above
the respective option’s strike price. The Fund's losses are
potentially large in a written put transaction and potentially
unlimited in an unhedged written call transaction. Changes in the
laws or regulations of the United States, including any changes to
applicable tax laws and regulations, could impair the ability of
the Fund to achieve its investment objective and could increase the
operating expenses of the Fund. The Fund may invest in U.S.
government or agency obligations. Securities issued or guaranteed
by federal agencies and U.S. government sponsored entities may or
may not be backed by the full faith and credit of the U.S.
government. Liquidity risk exists when particular investments of
the Fund would be difficult to purchase or sell, possibly
preventing the Fund from selling such illiquid securities at an
advantageous time or price, or possibly requiring the Fund to
dispose of other investments at unfavorable times or prices in
order to satisfy its obligations.
9154-NLD-12/12/2017
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For Rational FundsSarah Streeter,
646-757-8060sarah.streeter@mfunddistributors.com
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