Alpha Hedged Strategies Fund
Investment Objective
Hatteras Alpha Hedged Strategies Fund seeks to achieve consistent returns with low correlation to traditional financial market indices while maintaining a high correlation to the Hedge Fund Research, Inc. ("HFRI") Fund of Funds Composite Index.
Strategy Allocation
| Target | Current | |||
|---|---|---|---|---|
| Long/Short Equity | 35.0% | 34.4% | ▼ | |
| Market Neutral | 15.0 | 16.2 | ▲ | |
| Relative Value - Long/Short Debt | 20.0 | 21.2 | ▲ | |
| Event Driven | 20.0 | 17.8 | ▼ | |
| Managed Futures | 10.0 | 9.4 | ▼ | |
Strategy allocation may not equal 100% as cash equivalents are not applicable.
Top Five Managers1
| Managers | Strategy | Percentage |
|---|---|---|
| Front Four Capital Group | Event Driven | 7.6% |
| Tamarak Capital Management | Long/Short Equity | 5.8 |
| Inflection Partners | Market Neural | 5.7 |
| OMT Capital Management | Long/Short Equity | 5.5 |
| ISF Management | Long/Short Equity | 5.5 |
Strategy
Long/Short Equity: This strategy employs long and short trading in common stock, preferred stock, and convertible securities of U.S. and foreign issuers. This strategy attempts to achieve capital appreciation.
Market Neutral: This strategy is designed to exploit equity market inefficiencies, which involves being simultaneously invested in long and short matched equity portfolios generally of the same size, usually in the same market. This strategy attempts to achieve capital appreciation.
Relative Value - Long/Short Debt: This strategy is designed to take advantage of perceived discrepancies in the market prices of certain convertible bond, common stock, fixed income, and derivative securities. This strategy attempts to achieve current income, capital preservation, and capital appreciation.
Event Driven: This strategy is designed to invest in securities with prices that are or will be impacted by a corporate event. This strategy attempts to achieve capital appreciation.
Managed Futures: This strategy is designed to capture macroeconomic trends in the commodities and financial futures markets.
Team
Based of percentage of Underlying Funds as of 4/30/2012
Portfolio composition is subject to change at any time. Class I Shares require a $1MM minimum investment.
All data is as of 4/30/2012, unless otherwise indicated.
Important Disclosures and Risk Factors
Certain hedging techniques and leverage employed in the management of the Fund may accelerate the velocity of possible losses. Short selling involves the risk of potentially unlimited increase in the market value of the security sold short, which could result in potentially unlimited loss for the Funds. Derivatives involve investment exposure that may exceed the original cost and a small investment in derivatives could have a large potential impact on the performance of the Fund. Options held in the Fund may be illiquid and the fund manager may have difficulty closing out a position. Fixed Income instruments are exposed to credit and interest rate risks. Investing in lower-rated (“high-yield”) debt securities involves special risks in addition to the risks associated with investments in higher-rated debt securities, including a high degree of credit risk and liquidity risk. The Fund may also invest in:
- smaller capitalized companies – subject to more abrupt or erratic market movements than larger, more established companies
- foreign securities, which involve currency risk, different accounting standards and are subject to political instability;
- securities limited to resale to qualified institutional investors, which can affect their degree of liquidity;
- shares of other investment companies that invest in securities and styles similar to the Fund, resulting in a generally higher investment cost than from investing directly in the underlying shares of these funds.
The Fund intends to utilize these individual securities and hedging techniques in matched combinations that are designed to neutralize or offset the individual risks of employing these techniques separately. Some of these matched strategies include merger arbitrage, long/short equity, convertible bond arbitrage and fixed-income arbitrage. There is no assurance that these strategies will protect against losses. The Fund is a non-diversified and therefore may invest in the securities of fewer issuers than diversified funds at any one time; as a result, the gains and losses of a single security may have a greater impact on the Fund’s share price.
Because the Fund is a fund-of-funds, your cost of investing in the Fund will generally be higher than the cost of investing directly in the shares of the mutual funds in which it invests. By investing in the Fund, you will indirectly bear your share of any fees and expenses charged by the underlying funds, in addition to indirectly bearing the principal risks of the funds. Please refer to the summary prospectus or prospectus for more information about the Fund, including risks, fees and expenses.
Mutual fund investing involves risk; loss of principal is possible. Please consult an investment professional for advice regarding your particular circumstances. An investment in the Fund may not be suitable for all investors.
The Fund is offered only to United States residents, and information on this site is intended only for such persons. Nothing on this site should be considered a solicitation to buy or an offer to sell shares of the Fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.