The Power of Alternative ETFs
Higher Target Returns
Seeks higher returns through increased volatility at lower fees
Lower Fees
HFMF's .95% management fee is a fraction of the average fee charged by private 2&20 funds
Lower Taxes
For taxable investors, ETFs are more tax efficient than Limited Partnership funds
No Paperwork
Simplify your life and skip the paperwork and the K-1s
Fund Overview
The Fund seeks to create an investment portfolio with similar return characteristics to the gross of fees returns of the hedge fund industry’s Managed Futures sector (see the section of the Fund’s Prospectus titled “Additional Information about the Funds”) while also targeting a volatility level approximately twice that of the sector. By incorporating higher volatility, the Fund’s sub-adviser, Unlimited Funds, Inc. (“Unlimited” or the “Sub-Adviser”), believes that the Fund’s net of fees returns may outperform those of the Managed Future sector. Additionally, the Fund may benefit from its comparatively lower operating expenses versus the relatively high fees and expenses charged by hedge funds.
The Sub-Adviser determines the recent daily and monthly gross of fees returns and volatility metrics of the hedge fund industry’s Managed Futures sector by reviewing publicly reported returns and fee information for the sector. The Sub-Adviser determines an investment portfolio of long and short positions in Underlying ETFs and futures contracts which best match the Managed Futures sector’s most recent gross of fees returns, while approximately doubling its volatility, by using a proprietary algorithm.
What the Fund will NOT do: The Fund is not a hedge fund, nor will it invest in hedge fund strategies or positions. For the avoidance of doubt:
- The Fund will not invest in hedge funds.
- The Fund will not seek to replicate the direct underlying holdings of hedge funds.
- The Fund will not engage in certain types of investment activities that are permissible for hedge funds. For example, hedge funds may use more leverage than the Fund, and hedge funds may invest a greater percentage of their assets in illiquid investments as compared to the Fund.