Hedged Strategy Fund

The goal of the Fund is to achieve capital appreciation with low correlation to the equity markets. The adviser seeks to achieve this goal through the use of S&P 500 index options with the intent of retaining option premiums and allowing those options to expire worthless on a monthly basis.

Investment Methodology

The General Partner employs an alternative investment strategy that generates income on a range bound broad-based index through the time decay of option premiums by selling front month deep out-of-the-money put option spreads.

  • The investment process is systematic and repeatable in all market types. The manager uses proprietary technology developed over the past 15 years to augment investment decisions and to narrow down the scope of investable assets.
  • The investment process involves technical analysis, historical and future looking probability, pricing anomalies and risk management protocols to determine entry and exit points. Strict risk management protocols are key to providing low correlated returns to the overall market.
  • The Fund seeks to achieve its goals by using vertical spreads with short durations to capture short-term discrepancies between implied volatility and realized volatility (volatility arbitrage).
  • Longer-term put options are utilized to potentially reduce downside risks.

Fund Information

This product is available as a mutual fund through the Day Hagan Mutual Funds family. Pacini Hatfield Investments, LLC is the sub-adviser for this Fund. For more information on the Fund, including the prospectus, please visit the Fund website.

 

Please call Day Hagan Asset Management at 800-594-7930 with any questions.

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