Rational Funds and R. G. Niederhoffer Capital Management, Inc. Partner to Launch the Rational/RGN Hedged Equity Fund
R. G. Niederhoffer Launches First Single-Advisor Mutual Fund, Offering A Combination of S&P 500 and Diversified Short-term Futures Trading
(November 04, 2024) – Rational Funds, a provider of alternative investment solutions, and R. G. Niederhoffer Capital Management, a quantitative trading advisor serving institutional clients since its founding in 1993, announced the launch of the Rational/RGN Hedged Equity Fund (RNEIX).
The Fund benefits from two overlapping investment strategies: a core holding of 100% passive long exposure to the S&P 500 and a multi-asset futures trading overlay designed to mitigate risk and aims to generate positive returns during equity stress periods. RNEIX, which began trading on September 27, is also R. G. Niederhoffer’s first single-advisor mutual fund offering, providing financial advisors with access to the firm’s investment strategies focused on the behavioral biases of market participants.
Rational is an innovative investment manager whose mission is to help investors achieve their financial goals through non-traditional products that can meet the challenges of an ever-changing global financial market. Rational seeks to be the market leader in providing strategies with a decidedly different approach to educating, informing, and accomplishing the objectives set by our investors. Rational is committed to excellence with a culture centered on innovation, teamwork, and an entrepreneurial spirit that encourages a client-service mindset focused on positive outcomes.
“We are very excited to announce this partnership between Rational and R. G. Niederhoffer,” said David Miller, Chief Investment Officer of Rational Funds. “The Fund’s strategy and unique short-term managed futures approach makes it a strong addition to our lineup. This is another example of our commitment to providing investors with access to strategies that were previously unavailable to a retail audience, allowing them to take advantage of a renowned institutional approach.”
RNEIX seeks long-term capital appreciation by maintaining S&P 500 Index exposure with the prospect of reduced downside risk and return enhancement through its futures component. This dynamic overlay makes long and short investments in liquid global equity, fixed income, commodity, and FX markets that last from one hour and up to 10 days. The futures overlay is designed to be most effective during periods of high market volatility and is expected to be negatively correlated to equities.
“We have made our name for decades in the institutional alternative investment industry by producing strong returns in the most difficult periods for equities, like the Tech Crash, the Global Financial Crisis, and the 2022 high interest-rate bear market,” said Roy Niederhoffer, Founder and President of R. G. Niederhoffer Capital Management, Inc. “For the first time, we’re offering a product to financial advisors and retail investors that merges the familiarity and reliability of equity indexing with the diversification and enhancement of our dynamic quantitative futures investment strategy.”
For more information, please visit www.rationalmf.com.
For media inquiries on this announcement, please contact Deborah Kostroun of Zito Partners at 201-403-8185.
About Rational Funds
Rational Funds currently offers 8 distinctive funds that provide various strategies with the goal of producing income- and equity-oriented returns, while seeking to manage risk and volatility. Rational offers these exclusive strategies through a team of in-house portfolio managers and boutique institutional investment management partners. The firm strives to provide innovative strategies to support financial advisors and their clients in meeting the investment challenges of an ever-changing global market environment. For more information on Rational Funds and its various offerings, please visit: Rational Funds | Intelligent Alternatives (rationalmf.com)
About R. G. Niederhoffer Capital Management, Inc.
- G. Niederhoffer Capital Management, Inc. is a 30-year-old Miami-based quantitative trading advisor. Niederhoffer Capital Management aims to improve the return and risk-adjusted return of its institutional and high-net-worth clients by providing a combination of strong absolute return and dependable downside protection for portfolios containing equities, hedge funds, fixed income, and other traditional and alternative assets. Founder Roy Niederhoffer graduated in 1987 from Harvard University with a degree in Computational Neuroscience, and the firm’s investment strategy takes its inspiration from this field. More information is available at www.niederhoffer.com/
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. and R.G. Niederhoffer Capital Management is not affiliated with Northern Lights Distributors, LLC.
Important Risk Considerations:
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. Investors in the Fund bear the risk that the Fund may not be successful in implementing its investment strategies. The Fund is subject to concentration risk. When the Fund invests in asset-backed securities and mortgage-backed securities, the Fund is subject to the risk that, if the underlying borrowers fail to pay interest or repay principal, the assets backing these securities may not be sufficient to support payments on the securities. Interest rate risk is the risk that bond prices overall, including the prices of securities held by the Fund, will decline over short or even long periods of time due to rising interest rates. Bonds with longer maturities tend to be more sensitive to interest rates than bonds with shorter maturities. Lower-quality bonds, known as “high yield” or “junk” bonds, present greater risk than bonds of higher quality, including an increased risk of default. Credit risk is the risk that the issuer of a security will not be able to make principal and interest payments when due. These factors may affect the value of your investment.
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