The Alternative Strategies Mutual Fund is a Multi-Strategy, Multi-Manager investment vehicle that offers the diversification benefits of alternative investments with the shareholder features a mutual fund.
To achieve its investment objective, the Fund utilizes a variety of highly-specialized sub-advisors and allocates capital across a diversified mix of alternative investment strategies and asset classes. The Fund primarily invests in a variety of equity securities and exchange-traded funds ("ETFs"). The Fund may take both long and short positions in equity securities, including common and preferred stock of U.S. companies, foreign securities, American Depositary Receipts (ADRs), and securities in emerging markets. The Fund may also invest Fixed Income instruments, both long and short, as well as Commodity futures and options. The Fund may invest in companies of any size (from small-cap to mid-cap to large-cap) and in any style (from growth to value). In order to fully diversify the Fund portfolio, the Fund is generally not constrained among the other types of equity securities in which it may invest. Through a blending of complementary investment strategies, the Fund’s advisor believes that the Fund’s reward and risk characteristics can be enhanced and that a diversified multi-strategy approach may mitigate the risks typically associated with a single-strategy investment approach.
The Fund may be managed using the following investment strategies:
- Long/Short Equity Strategy
- Global Macro ETF Strategy
- Commodity Index Strategy
- Convertible Fixed Income Arbitrage Strategy
- International Strategy
Click here for a Glossary of Alternative Investment Strategies
Mutual fund investing involves risk. Principal loss is possible. The Fund invests in foreign securities, which involves greater volatility; greater political, economic, currency risk; and differences in accounting methods. The Fund invests in smaller companies, which involves additional risks such as limited liquidity and greater volatility. Investments in debt securities decrease in value when interest rates rise and this risk is greater for longer-term debt securities. 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 Fund. 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. The Fund strategies and potential for high turnover could affect the amount, timing, and character of distributions. The Fund will bear its share of the fees and expenses of the underlying funds. Shareholders will pay higher expenses than would be the case if making direct investments in the underlying ETFs. Because the Fund invests in ETFs, it is subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of an ETF’s shares may trade at a discount to its net asset value (“NAV”), an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact a fund’s ability to sell its shares. Alternative investments may not be suitable for all investors. Diversification does not assure a profit or protect against loss in a declining market.