Rational/RGN Hedged Equity Fund
Tickers: RNEIX | RNECX | RNEAX
Fund Objective
The Fund’s objective is to seek long-term capital appreciation.
Investment Strategy
The Fund benefits from two overlapping investment strategies, allowing the Fund to work simultaneously as:
Long-Term Capital Appreciation
A core holding of 100% long exposure to the S&P 500 Index, (an index of 500 stocks chosen for market size, liquidity and industry grouping, among other factors) allowing full, tax-efficient capture of long-term capital appreciation.
Quantitative Overlay Strategy
A quantitative overlay strategy that makes long and short investments in liquid futures and cash FX (Forex, or “foreign exchange”) markets lasting a few hours to 1-2 weeks. The overlay strategy is designed to mitigate the Fund’s downside risk, generate positive returns during volatile, directionless periods for equities or from volatility in non-equity sectors such as interest rates, foreign exchange and commodities, and achieve additional upside during bull markets. See Glossary of Terms for definitions.
Investment Philosophy
Inspired by Computational Neuroscience
The Sub-Advisor’s distinct investment philosophy is inspired by Computational Neuroscience. It posits that markets are predictable in the short term due to powerful, innate cognitive and behavioral biases among participants – not just in their decision making but even embedded in the quantitative models they create.
Automated Directional Trades
It automatically executes directional trades averaging 5-7 days, and is distinct from long-biased equity strategies, long-term trend following, or volatility selling approaches.
Risk-Mitigating Alpha*
It is designed to deliver diversifying risk-mitigating alpha, boosting performance while reducing equity risk. Its competitive edge stems from an innovative combination of neuroscience-inspired strategies, proprietary machine-learning technology and advanced infrastructure, backed by an over-30-year track record and an experienced team of market experts and data scientists in an institutional firm focused on innovation, stability, and risk management.
*See Glossary of Terms.
Fund Management
R. G. Niederhoffer Capital Management, Inc.
Roy Niederhoffer
- Founder & President of R. G. Niederhoffer Capital Management.
- Graduated magna cum laude in Computational Neuroscience at Harvard University
Paul Shen
- Chief Investment Officer & Head Trader of R. G. Niederhoffer Capital Management
- BS in Finance & International Business from New York University
Brian Duda, PhD
- Director of Research & Machine Learning Strategies of R. G. Niederhoffer Capital Management
- BS in Physics from Massachusetts Institute of Technology (MIT), MS in Physics from UCLA, PhD in Physics from UCLA
Karolina Stanislawski
- Managing Director of R. G. Niederhoffer Capital Management
- BS in Economics, University of Pennsylvania, Wharton School
Fund Overview
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Current Fund Performance
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Performance data is updated daily and pulled from the Ultimus Fund Solutions data feed. Past performance does not guarantee future results. The maximum sales charge for Class A Shares is 5.75%. Class C Shares held for less than one year are subject to a 1% CDSC.
Quarterly Fund Performance
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| Share Class | 1 Month | 3 Months | 6 Months | YTD | 1 Year | 3 Years Ann. | 5 Years Ann. | 10 Years Ann. | Since Inception Ann. |
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Performance data reflects quarter-end values and is pulled from the Ultimus Fund Solutions data feed. Past performance does not guarantee future results. The maximum sales charge for Class A Shares is 5.75%. Class C Shares held for less than one year are subject to a 1% CDSC.
Performance data reflects quarter-end values and is pulled from the Ultimus Fund Solutions data feed. Past performance does not guarantee future results. The maximum sales charge for Class A Shares is 5.75%. Class C Shares held for less than one year are subject to a 1% CDSC. Maximum sales charge for Class A is 5.75%. Maximum Deferred Sales Charge of 1.00% on Class C Shares applies to shares sold within 12 months of purchase. The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Past performance is no guarantee of future results. Results shown reflect the waiver, without which the results could have been lower. A fund’s performance, especially for very short periods of time, should not be the sole factor in making your investment decisions. To obtain the most recent month end performance information or the Fund’s prospectus please call 800-253-0412 or visit www.RationalMF.com.
Fund Expenses
| Share Class | Institutional | Class A | Class C | Class A w/ Sales Load |
| Prospectus Gross Expense Ratio (May 1, 2026) | 3.88% | 3.57% | 4.91% | 3.57% |
| Prospectus Net Expense Ratio* (May 1, 2026) | 2.05% | 2.30% | 3.05% | 2.30% |
* Rational Advisors, Inc. (the “Advisor”), has contractually agreed to waive all or a portion of its management fee and/or reimburse certain operating expenses of the Fund to the extent necessary in order to limit the Total Annual Fund Operating Expenses (excluding: (i) acquired fund fees and expenses; (ii) brokerage commissions and trading costs; (iii) interest (including borrowing costs and overdraft charges); (iv) taxes; (v) short sale dividends and interest expenses; and (vi) non-routine or extraordinary expenses (such as regulatory inquiry and litigation or reorganizational costs) to not more than 1.99%, 2.24%, and 2.99% of the average daily net assets of the Fund’s Institutional, Class A, and Class C shares, respectively, through April 30, 2027.
Glossary of Terms
S&P 500 Index: An index of 500 stocks chosen for market size, liquidity and industry grouping, among other factors. It is considered to be generally representative of the U.S. large capitalization stock market as a whole. You cannot invest directly in an index. Unmanaged index returns do not reflect fees, expenses or sales charges.
Overlay Strategy: An investment strategy that coordinates and harmonizes an investor’s separately managed accounts using software to ensure efficiency and overall portfolio balance.
Futures: Contracts to buy or sell a specific underlying asset at a future date.
Alpha: A term used in investing to describe an investment strategy’s ability to beat the market, or its “edge.”
Important Risk Considerations
Past performance is not a guarantee of future results.
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 or group of securities in the Fund’s portfolio. Investors in the Fund bear the risk that the Fund may not be successful in implementing its investment strategies. The Fund will invest a percentage of its assets in derivatives, such as swaps, 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 swaps, futures contracts, options, and hedging strategies. The Fund may be indirectly exposed to risks of investing in digital assets through its investments in digital asset futures contracts; in addition to the risks of futures contracts generally, the markets for digital asset futures contracts have additional unique risks, including that the markets for digital asset futures contracts may be less developed, less liquid, and more volatile than more established futures markets. 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. Other risks include U.S. Government securities risks and investments in fixed income securities. 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.
