DAY HAGAN LOGIX
SMART VALUE FUND
DHQAX | DHQCX | DHQIX
INVESTMENT OBJECTIVE
The Day Hagan Logix Smart Value strategy is focused on achieving Capital Appreciation, Risk Management, and Cash Flow from Dividends.
The proprietary dividend strategy utilizes dividend yield as an objective valuation measure.
“Earnings and valuation metrics, in general, can be subjective and difficult to forecast. Using the Day Hagan Logix Smart Value process, dividend yield becomes an objective, controlled means of valuation. The goal of the fund is to begin by identifying attractive U.S. industries, and then identifying the attractive companies within them.”
— Robert Herman, Portfolio Manager
THE PROCESS
IDENTIFY ATTRACTIVE INDUSTRIES
- The proprietary process begins by screening all listed U.S. equities for companies with a 10-year history of uncut dividends, balance sheet sustainability, cash flow generation, and fundamental soundness.
- Typically, approximately 400 names emerge for the next stage of analysis.
- The screened group of buy candidates are then re-classified into proprietary industry groups based on business lines and revenue sources.
- Once the industry groups are defined, there must be a minimum of four candidates within an industry for that industry (and the underlying names) to be included in the next stage of analysis.
- Further, the newly formed industry’s composite dividend yield must be near the high yield buy threshold that we have calculated for each industry.
- Industries passing the evaluation are defined as potentially being at or near the lows of their current price cycles — and the companies within these industries are considered to buy candidate finalists.
We believe it is vitally important to only invest in those industries with a broad-based, large number of attractively rated constituents. Our view is that historically, this has proven to reveal industries benefiting from a broader-based positive fundamental change in that industry’s operating environment. Within the portfolio, assets and position sizes are allocated based on a weight-of-the-evidence approach, while tactical changes in the portfolio are made to reflect prevailing financial conditions within industries and sectors. When suitable buy candidates are not available, cash is utilized as a defensive measure.
“The portfolio is constructed upon a foundation of time-tested factors which have historically pinpointed industries and companies that are attractively priced, shareholder-friendly, fundamentally sound and exhibiting balance sheet strength. When suitable buy candidates are not available based on the strategy’s criteria, cash is utilized as a defensive measure.”
— Jeffrey Palmer, Portfolio Manager
Furthermore, the strategy employs a multifaceted sell discipline which includes the ongoing evaluation of fundamental and technical measures.
“The Day Hagan Logix Smart Value Strategy doesn’t try to replicate a fixed benchmark. Instead, as a function of the rigorous analysis of industries and the companies within them, the portfolio continually moves towards areas evidencing attractive prices and fundamental soundness – whether those areas are in large-cap, small-cap, value or growth. We focus only on the highest potential for success.”
— Donald L. Hagan, CFA, Executive Team
FUND ADMINISTRATORS
Gemini Fund Services, LLC
Day Hagan Smart Value Fund
17605 Wright St, Ste 2
Omaha, NE 68130
RELATED MATERIALS
Day Hagan Logix Tactical Dividend/Smart Value Fund Name Change Sticker May 14, 2020 (pdf)
Day Hagan Logix Smart Value Fund Fact Sheet December 2020 (pdf)
Day Hagan Logix Smart Value Fund Summary Prospectus November 1, 2020 (pdf)
Day Hagan Logix Smart Value Fund Annual Report June 30, 2020 (pdf)
Day Hagan Logix Smart Value Fund Prospectus November 1, 2020 (pdf)
Day Hagan Semi-Annual Report (pdf)
Day Hagan Logix Smart Value Fund Statement of Additional Information November 1, 2020 (pdf)
Day Hagan Sticker Supplement Prospectus COVID-19 03.26.2020 (pdf)
CLASS A
TICKER: DHQAX
CUSIP: 62827M664
CLASS C
TICKER: DHQCX
CUSIP: 62827M656
CLASS I
TICKER: DHQIX
CUSIP: 62827M649
MINIMUM INVESTMENT
Initial Non-qualified Account:
$1,000.00 USD
Retirement Account:
$1,000.00 USD
Additional Investments:
$50.00 USD
Initial AIP:
$100.00 USD
