U.S. Equity 130/30
Fund Resources
- Fact Sheet (PDF | 159 KB)
- Commentary (PDF | 138 KB)
- Strategy Highlight (PDF | 169 KB)
- Prospectus - A, C & I Shares(PDF | 829 KB)
- SAI (PDF | 2 MB)
| Class | CUSIP | Ticker |
|---|---|---|
| A | 76628R433 | SUEAX |
| C | 76628R425 | SUECX |
| I | 76628R441 | SUEIX |
Subadvisor
Objective
The strategy seeks to generate alpha (risk adjusted return relative to the benchmark) by establishing long and short equity positions in U.S. companies.
What are the principles that have supported the past success of this strategy
Experienced Long-Short Managers — For more than seven years, Alpha Equity has successfully managed long/short portfolios, following decades of honing their fundamental-quantitative investment philosophy at leading institutional money management firms. Today, Alpha Equity continues to fine-tune the systematic implementation of their process – seeking to deliver alpha. Alpha Equity’s past success is no guarantee of future results.
Ability to Exploit Market Inefficiencies — Market inefficiencies are created by emotional investor behavior, imperfect information dissemination, corporate insider signaling, and liquidity-demanding trading by large institutions. Alpha Equity quantifies these long-lasting inefficiencies with fundamental factors, allowing them to systemically exploit the inefficiencies in portfolios.
Time-Tested, Repeatable Process — Alpha Equity’s time-tested investment process employs multi-factor stock selection models where the factors are intended to capture and quantify certain market inefficiencies. Factor selection is dynamic. Each month factors are selected and weighed according to their effectiveness, allowing the market rather than subjective opinion to determine composition of the model.
Investment Risks
Stocks are more volatile and carry more risk and return potential than other forms of investments.
This Fund makes short sales, which involve selling a security the Fund does not own, with the expectation that the security’s price will decline. Should the value of the security rise rather than fall, it will suffer a loss. The Fund’s loss on a short sale is potentially unlimited because there is no upward limit on the price the borrowed security could attain.
Active investment strategies can increase expenses and may have tax implications.
This is a specialized investment strategy that may not be suitable for all investors.