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, 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 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
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.
Protective Alpha
It is designed to deliver diversifying protective alpha, boosting performance while reducing equity risk. Its competitive edge stems from a unique 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 safety.
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
- Senior Strategist of R. G. Niederhoffer Capital Management
- BS in Economics, University of Pennsylvania, Wharton School
Fund Overview
Data as of: 2024-10-14T00:00:00
Ticker | RNEAX | RNECX | RNEIX | RNEAX |
Share Class | Class A | Class C | Class I | Class A w/ Sales Load |
CUSIP | 628255358 | 628255341 | 628255333 | 628255358 |
Inception Date | 2024-09-27T00:00:00 | 2024-09-27T00:00:00 | 2024-09-27T00:00:00 | 2024-09-27T00:00:00 |
As of Date | 2024-10-14T00:00:00 | 2024-10-14T00:00:00 | 2024-10-14T00:00:00 | 2024-10-14T00:00:00 |
Daily NAV | 10.24 | 10.23 | 10.24 | 10.24 |
NAV Change | 0.08 | 0.07 | 0.08 | 0.08 |
% NAV Change | 0.79% | 0.69% | 0.79% | 0.79% |
Current Fund Performance
Data as of: 2024-10-14T00:00:00
Share Class | 1 Month | 3 Months | 6 Months | YTD | 1 Year | 3 Years Annualized | 5 Years Annualized | 10 Years Annualized | Since Inception Annualized |
Class A | N/A | N/A | N/A | 2.40% | N/A | N/A | N/A | N/A | 2.40% |
Class C | N/A | N/A | N/A | 2.30% | N/A | N/A | N/A | N/A | 2.30% |
Class I | N/A | N/A | N/A | 2.40% | N/A | N/A | N/A | N/A | 2.40% |
Class A w/Sales Load | N/A | N/A | N/A | -2.48% | N/A | N/A | N/A | N/A | -2.48% |
Quarterly Fund Performance
Data as of Quarter End: 2024-09-30T00:00:00
Share Class | 1 Month | 3 Months | 6 Months | YTD | 1 Year | 3 Years Annualized | 5 Years Annualized | 10 Years Annualized | Since Inception Annualized |
Class A | N/A | N/A | N/A | 0.00% | N/A | N/A | N/A | N/A | 0.00% |
Class C | N/A | N/A | N/A | 0.00% | N/A | N/A | N/A | N/A | 0.00% |
Class I | N/A | N/A | N/A | 0.00% | N/A | N/A | N/A | N/A | 0.00% |
Class A w/Sales Load | N/A | N/A | N/A | -4.76% | N/A | N/A | N/A | N/A | -4.76% |
Maximum sales charge for Class A is 4.75%. 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
Data as of: 2024-10-14T00:00:00
Share Class | Class I | Class A | Class C | Class A w/ Sales Load |
Prospectus Gross Expense Ratio (May 1, 2024) | 2.58% | 2.83% | 3.58% | 2.83% |
Prospectus Net Expense Ratio* (May 1, 2024) | 2.08% | 2.33% | 3.08% | 2.33% |
* Rational Advisors, Inc. 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 (but 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, (vi) non-routine or extraordinary expenses (such as litigation or reorganizational costs), and (vii) costs and expenses of litigation or claims on behalf of the Fund regarding portfolio investments initiated (or threatened) by the investment adviser or sub-advisor) to not more than 1.99%, 2.24% and 2.99% of the daily net assets of the Fund’s Institutional, Class A, and Class C shares, respectively, through April 30, 2026.
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 in the Fund’s portfolio. The performance of the Fund may be subject to substantial short-term changes. To the extent the Fund invests in the stocks of smaller-sized companies, the Fund may be subject to additional risks, including the risk that earnings and prospects of these companies are more volatile than larger companies. Smaller-sized companies may experience higher failure rates than larger companies and normally have lower trading volume than larger companies. These factors may affect the value of your investment. Investments in real estate investment trusts (REITS) involve special risks associated with an investment in real estate, such as limited liquidity and interest rate risks, and may be more volatile than other securities. There are no guarantees that dividend paying stocks will continue to pay dividends. In addition, dividend paying stocks may not experience the same capital appreciation potential as non-dividend. The performance of the Fund is based in part on the prices of one or more of the VIX Futures in which the Fund invests. Each of the equity securities held by the Fund and the VIX Futures are affected by a variety of factors and may change unpredictably, affecting the value of such equity securities and VIX Futures and, consequently, the value and the market price of the Fund’s shares.
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