INVESTMENT OBJECTIVE

To achieve capital appreciation with low correlation to the equity markets. Utilizes an alpha-driven investment approach focusing on option writing and option spreads that are expected to expire within 30-60 days with the intent of limiting long-term risks. This approach seeks to allow the Fund to retain the premium received from the option positions. Additionally, the Fund utilizes put options to potentially hedge downside risks.

INVESTMENT PHILOSOPHY

  • 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.

PRIMARY GOALS & KEY REASONS TO INVEST

Discretionary Trading Strategy:

The Fund implements an opportunistic mean reversion/range volatility trading strategy, which involves trading options and futures with expirations generally 60 days or less. By doing so, the goal of the strategy is to generate monthly returns in excess of its benchmark index.

Non-Correlated:

The Fund seeks returns that are uncorrelated to equity markets through a strategy that profits from options that expire worthless on a monthly basis, potentially allowing the Fund to keep the option premium regardless of the equity market direction.

PORTFOLIO PROFILE

  • Strategy Description: Discretionary options trading (mean reversion/range volatility trading) with strict program disciplines.
  • Instruments Traded: Focuses on S&P 500 Index options.
  • Inputs: Historical and future looking probability, pricing anomalies and risk management protocols to determine entry and exit points.
  • Holding Periods: Average of 30 trading days: hedging positions generally purchased 365 days out and rolled every 30-60 days. The Fund may close positions early and purposefully go to cash as a way to mitigate market risk.
  • Risk Management: Systematic framework focused on reducing sensitivity to downside market movements, including trade analysis with real-time stress testing.
  • Tax Treatment: Capital gains from options on S&P 500 Index futures are treated as 60% long-term/40% short-term, regardless of the holding period.
 

CLASS A

TICKER: DHJAX
CUSIP: 62827P717

CLASS C

TICKER: DHJCX
CUSIP: 62827P691

CLASS I

TICKER: DHJIX
CUSIP: 62827L641

MINIMUM INVESTMENT

Initial Non-qualified Account:
$2,500.00 USD

Additional Investments:
$50.00 USD

Initial AIP:
$100.00 USD

MANAGEMENT 

EXECUTIVE TEAM

FUND ADMINISTRATOR

Gemini Fund Services, LLC
Day Hagan Hedged Strategy Fund
17605 Wright St, Ste 2
Omaha, NE 68130