Rational/NuWave Enhanced Market Opportunity Fund Offers Two-Component Strategy
HUNTINGTON, N.Y.–(BUSINESS WIRE)–Rational Funds, a family of funds rooted in the investment philosophy of applying a rational approach to investing, today announced the launch of the Rational/NuWave Enhanced Market Opportunity Fund (NUXIX). The Fund is Rational Funds’ second hedge fund conversion and offers the same strategy as its predecessor.
“The NuWave team developed a successful strategy to generate both alpha and beta for investors seeking U.S. equity exposure, and Rational Funds is proud to bring this strategy to all investors” – Jerry Szilagyi, CEO of Rational Funds
NUXIX utilizes a strategy that has consistently delivered positive returns since its inception in 2013. The Fund’s investment strategy is comprised of two distinct components. The first is an actively managed U.S. equity strategy, investing primarily in S&P 500 large-cap equities. The second is a broadly diversified managed futures strategy, providing both long and short exposure across a wide variety of global financial and commodities markets. The blended portfolio seeks to deliver superior risk-adjusted returns compared to a long-only, non-leveraged equity portfolio, particularly during extended equity bear market scenarios.
“The NuWave team developed a successful strategy to generate both alpha and beta for investors seeking U.S. equity exposure, and Rational Funds is proud to bring this strategy to all investors,” said Jerry Szilagyi, CEO of Rational Funds. “With the Rational/NuWave Enhanced Market Opportunity Fund, investors get U.S. equity exposure in combination with a macro-focused long/short component that seeks to provide uncorrelated returns. In times of extended market downturn, this approach has the potential to neutralize the declines.”
The equity component of NUXIX employs a quantitative and systematic strategy to identify repetitive patterns of price behavior in U.S. equities that are indicative of prevailing market sentiment. Individual stocks that are identified as expected outperformers of the benchmark index are included in the portfolio’s position, while those identified as expected underperformers are either liquidated or excluded. Typically, positions are predominately in companies with market capitalizations of $5 billion or more, and include diversified holdings of a few hundred equities at any given time.
The managed futures component of the Fund employs a multi-model, systematic strategy that allocates across more than 50 markets worldwide. The strategy seeks to identify price trends through the application of hundreds of individual trading models, which collectively provide diversified exposure to futures markets. Exposure includes both financial futures (stock indices, fixed income and currencies) and commodity futures (energies, metals, grains, softs and meats), as well as international stock indices, bonds and currencies.
NUXIX is sub-advised by NuWave Investment Management, LLC and maintains the same investment management team as its predecessor fund. The Fund trades under the tickers NUXIX, NUXAX and NUXCX. For more information on Rational Funds and its mutual fund products, please visit: www.rationalmf.com.
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 eight 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.
About NuWave Investment Management, LLC
Founded in February of 2000, NuWave Investment Management, LLC specializes in the development of quantitative trading strategies and their systematic application to global financial and commodity markets. Based in Parsippany, New Jersey, the firm manages approximately $170 million and is registered as a commodity trading advisor and commodity pool operator with the U.S. Commodity Futures Trading Commission and is a member of the National Futures Association, as well as being registered as an investment adviser with the U.S. Securities and Exchange Commission.
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. There is no assurance that the fund will achieve its investment objectives. The Fund will invest a percentage of its assets in derivatives, such as futures and options contracts. The use of such derivatives and the resulting high portfolio turn-over may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities and commodities underlying those derivatives. The Fund may experience losses that exceed those experienced by funds that do not use futures contracts, options and hedging strategies. Investing in commodities markets may subject the Fund to greater volatility than investments in traditional securities. Currency trading risks include market risk, credit risk and country risk. Foreign investing involves risks not typically associated with U.S. investments. Changes in interest rates and the liquidity of certain investments could affect the Fund’s overall performance. The Fund is non-diversified and as a result, changes in the value of a single security may have significant effect on the Fund’s value. When the Fund invests in fixed income securities, the value of your investment in the Fund will fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities or derivatives owned by the Fund. Furthermore, the use of leveraging can magnify the potential for gain or loss and amplify the effects of market volatility on the Fund’s share price. The Fund is subject to regulatory change and tax risks; changes to current rules could increase costs associated with an investment in the Fund. These factors may affect the value of your investment. 4257-NLD-2/28/2018