Skip to Main Content

Hedged Equity Fund

The Hedged Equity strategy seeks to provide risk mitigation during significant equity market drawdowns while also participating in the upside by investing in a combination of option hedging and equity allocation.

Overall Morningstar rating as of January 31, 2024. Based on risk-adjusted returns. Category: Options Trading out of 215 funds.

More Information

$11.28
2/29/2024

2.30%
2/29/2024
at NAV

NAV Disclosure

Why This Fund?

  • Equity Exposure: Employs an options strategy that seeks to participate in equity markets (S&P 500) with less risk
  • Consistent Risk Mitigation: Aims to improve asset allocation by managing both volatility and correlation in equity market declines and seeks to reduce the risk of large drawdowns through a systematic put strategy
  • Adaptable: Highly adaptable to changing volatility (VIX) levels via short-term laddered put options
  • Correlation: Low correlation to fixed income, yet buffers like fixed income. Aims to provide low-to-negative correlation during market drawdowns.

Fund Facts

INCEPTION DATE
08/03/2015
NET ASSETS
$139MM
ASSET CLASS
Alternative, Equity
MORNINGSTAR CATEGORY
Options Trading
BENCHMARK
S&P 500 TR
GROSS EXPENSES
2.85% View Disclosure
NET EXPENSES
2.36% View Disclosure
CUSIP
470258807

Monthly Returns

0.73%0.73%10.71%6.38%6.43%4.76%
2.15%2.91%17.66%6.14%6.78%-

Performance data quoted is historical.

The performance data shown represents past performance, which does not guarantee future results. Investment returns and principal value will fluctuate, so that investors’ shares, when sold, may be worth more or less than their original cost. See performance data current to the most recent quarter end, which may be higher or lower than that cited. Performance figures assume that all distributions are reinvested. Performance shown is for the share class indicated only. The performance of other share classes will vary. For performance information current to the most recent month-end, please call 888.814.8180.

The Fund’s Morningstar category average is a group of funds with similar investment objectives and strategies and is the equal-weighted return of all funds per category. Morningstar places funds in certain categories based on their historical portfolio holdings.

The inception date for A, C and I Shares was July 31, 2015; Inception date for S Shares was August 17, 2017. S Shares were converted to R6 Shares on March 19, 2021.

All returns are quoted as annualized if over 1 year. Returns for the Fund’s first year are since fund inception. Calendar year returns do not reflect the maximum sales charge; otherwise, returns would vary.

The Fund’s management has contractually waived a portion of its management fees until December 31, 2024 for I, A, C and R6 Shares. The performance shown reflects the waivers without which the performance would have been lower. Total annual operating expenses before the expense reduction/reimbursement are 1.78%, 2.03%, 2.78% and 1.78% respectively; total annual operating expenses after the expense reduction/reimbursement are 1.44%, 1.69%, 2.44% and 1.18% respectively. 5.75% is the maximum sales charge on purchases of A shares.

The Fund’s investment adviser has contractually agreed to reduce and/or absorb expenses until at least December 31, 2024 for I, A, C and R6 Shares, to ensure that net annual operating expenses of the fund (excluding front-end and contingent deferred sales loads, leverage, interest and tax expenses, dividends and interest on short positions, brokerage commissions, expenses incurred in connection with any merger, reorganization or liquidation, extraordinary or non-routine expenses and the indirect costs of investing in other investment companies) will not exceed 1.25%, 1.50%, 2.25% and 0.99% respectively, subject to possible recoupment from the Fund in future years. For more information, please refer to the Fund’s summary prospectus and prospectus.

 

Daily Pricing and Returns

$11.28 0.00 3.30

Performance data quoted is historical.

The performance data shown represents past performance, which does not guarantee future results. Investment returns and principal value will fluctuate, so that investors’ shares, when sold, may be worth more or less than their original cost. See performance data current to the most recent quarter end, which may be higher or lower than that cited. Performance figures assume that all distributions are reinvested. Performance shown is for the share class indicated only. The performance of other share classes will vary. For performance information current to the most recent month-end, please call 888.814.8180.

The Fund’s Morningstar category average is a group of funds with similar investment objectives and strategies and is the equal-weighted return of all funds per category. Morningstar places funds in certain categories based on their historical portfolio holdings.

The inception date for A, C and I Shares was July 31, 2015; Inception date for S Shares was August 17, 2017. S Shares were converted to R6 Shares on March 19, 2021.

All returns are quoted as annualized if over 1 year. Returns for the Fund’s first year are since fund inception. Calendar year returns do not reflect the maximum sales charge; otherwise, returns would vary.

The Fund’s management has contractually waived a portion of its management fees until December 31, 2024 for I, A, C and R6 Shares. The performance shown reflects the waivers without which the performance would have been lower. Total annual operating expenses before the expense reduction/reimbursement are 1.78%, 2.03%, 2.78% and 1.78% respectively; total annual operating expenses after the expense reduction/reimbursement are 1.44%, 1.69%, 2.44% and 1.18% respectively. 5.75% is the maximum sales charge on purchases of A shares.

The Fund’s investment adviser has contractually agreed to reduce and/or absorb expenses until at least December 31, 2024 for I, A, C and R6 Shares, to ensure that net annual operating expenses of the fund (excluding front-end and contingent deferred sales loads, leverage, interest and tax expenses, dividends and interest on short positions, brokerage commissions, expenses incurred in connection with any merger, reorganization or liquidation, extraordinary or non-routine expenses and the indirect costs of investing in other investment companies) will not exceed 1.25%, 1.50%, 2.25% and 0.99% respectively, subject to possible recoupment from the Fund in future years. For more information, please refer to the Fund’s summary prospectus and prospectus.

 

Quarterly Returns

6.28%13.56%13.56%6.16%7.05%4.71%
6.85%17.57%17.57%5.36%7.12%-

Performance data quoted is historical.

The performance data shown represents past performance, which does not guarantee future results. Investment returns and principal value will fluctuate, so that investors’ shares, when sold, may be worth more or less than their original cost. See performance data current to the most recent quarter end, which may be higher or lower than that cited. Performance figures assume that all distributions are reinvested. Performance shown is for the share class indicated only. The performance of other share classes will vary. For performance information current to the most recent month-end, please call 888.814.8180.

The Fund’s Morningstar category average is a group of funds with similar investment objectives and strategies and is the equal-weighted return of all funds per category. Morningstar places funds in certain categories based on their historical portfolio holdings.

The inception date for A, C and I Shares was July 31, 2015; Inception date for S Shares was August 17, 2017. S Shares were converted to R6 Shares on March 19, 2021.

All returns are quoted as annualized if over 1 year. Returns for the Fund’s first year are since fund inception. Calendar year returns do not reflect the maximum sales charge; otherwise, returns would vary.

The Fund’s management has contractually waived a portion of its management fees until December 31, 2024 for I, A, C and R6 Shares. The performance shown reflects the waivers without which the performance would have been lower. Total annual operating expenses before the expense reduction/reimbursement are 1.78%, 2.03%, 2.78% and 1.78% respectively; total annual operating expenses after the expense reduction/reimbursement are 1.44%, 1.69%, 2.44% and 1.18% respectively. 5.75% is the maximum sales charge on purchases of A shares.

The Fund’s investment adviser has contractually agreed to reduce and/or absorb expenses until at least December 31, 2024 for I, A, C and R6 Shares, to ensure that net annual operating expenses of the fund (excluding front-end and contingent deferred sales loads, leverage, interest and tax expenses, dividends and interest on short positions, brokerage commissions, expenses incurred in connection with any merger, reorganization or liquidation, extraordinary or non-routine expenses and the indirect costs of investing in other investment companies) will not exceed 1.25%, 1.50%, 2.25% and 0.99% respectively, subject to possible recoupment from the Fund in future years. For more information, please refer to the Fund’s summary prospectus and prospectus.

 

Calendar Year Performance

20232022202120202019201820172016
HEDGED EQUITY FUND C (JDCEX)13.56%-3.79%9.50%6.07%10.81%0.35%
5.43%
1.12%
Morningstar Options Trading Category17.57%-9.61%10.69%7.16%11.34%-3.45%
6.02%
3.31%

Performance data quoted is historical.

The performance data shown represents past performance, which does not guarantee future results. Investment returns and principal value will fluctuate, so that investors’ shares, when sold, may be worth more or less than their original cost. See performance data current to the most recent quarter end, which may be higher or lower than that cited. Performance figures assume that all distributions are reinvested. Performance shown is for the share class indicated only. The performance of other share classes will vary. For performance information current to the most recent month-end, please call 888.814.8180.

The Fund’s Morningstar category average is a group of funds with similar investment objectives and strategies and is the equal-weighted return of all funds per category. Morningstar places funds in certain categories based on their historical portfolio holdings.

The inception date for A, C and I Shares was July 31, 2015; Inception date for S Shares was August 17, 2017. S Shares were converted to R6 Shares on March 19, 2021.

All returns are quoted as annualized if over 1 year. Returns for the Fund’s first year are since fund inception. Calendar year returns do not reflect the maximum sales charge; otherwise, returns would vary.

The Fund’s management has contractually waived a portion of its management fees until December 31, 2024 for I, A, C and R6 Shares. The performance shown reflects the waivers without which the performance would have been lower. Total annual operating expenses before the expense reduction/reimbursement are 1.78%, 2.03%, 2.78% and 1.78% respectively; total annual operating expenses after the expense reduction/reimbursement are 1.44%, 1.69%, 2.44% and 1.18% respectively. 5.75% is the maximum sales charge on purchases of A shares.

The Fund’s investment adviser has contractually agreed to reduce and/or absorb expenses until at least December 31, 2024 for I, A, C and R6 Shares, to ensure that net annual operating expenses of the fund (excluding front-end and contingent deferred sales loads, leverage, interest and tax expenses, dividends and interest on short positions, brokerage commissions, expenses incurred in connection with any merger, reorganization or liquidation, extraordinary or non-routine expenses and the indirect costs of investing in other investment companies) will not exceed 1.25%, 1.50%, 2.25% and 0.99% respectively, subject to possible recoupment from the Fund in future years. For more information, please refer to the Fund’s summary prospectus and prospectus.

 

Fund Statistics - 5 Year

Standard Deviation

7.44% 

Sharpe Ratio

0.69 

Sortino Ratio

1.07 

Max Drawdown

-8.47% 

Worst Quarter

-7.04% 

Upside Capture Ratio

39.46% 

Downside Capture Ratio

35.59% 

View Glossary

Strategy Statistics

CallsLong PutsShort Puts
Percent Hedged With Options100%>140%
Weighted Average Days to Expiration 14.0625.00
Weighted Average Moneyness0.78%-1.67%-6.71%
Call Premium to Earn0.42%NA
Put Premium CostNA0.97%

Performance data quoted is historical.

The performance data shown represents past performance, which does not guarantee future results. Investment returns and principal value will fluctuate, so that investors’ shares, when sold, may be worth more or less than their original cost. See performance data current to the most recent quarter end, which may be higher or lower than that cited. Performance figures assume that all distributions are reinvested. Performance shown is for the share class indicated only. The performance of other share classes will vary. For performance information current to the most recent month-end, please call 888.814.8180.

The Fund’s Morningstar category average is a group of funds with similar investment objectives and strategies and is the equal-weighted return of all funds per category. Morningstar places funds in certain categories based on their historical portfolio holdings.

The inception date for A, C and I Shares was July 31, 2015; Inception date for S Shares was August 17, 2017. S Shares were converted to R6 Shares on March 19, 2021.

All returns are quoted as annualized if over 1 year. Returns for the Fund’s first year are since fund inception. Calendar year returns do not reflect the maximum sales charge; otherwise, returns would vary.

The Fund’s management has contractually waived a portion of its management fees until December 31, 2024 for I, A, C and R6 Shares. The performance shown reflects the waivers without which the performance would have been lower. Total annual operating expenses before the expense reduction/reimbursement are 1.78%, 2.03%, 2.78% and 1.78% respectively; total annual operating expenses after the expense reduction/reimbursement are 1.44%, 1.69%, 2.44% and 1.18% respectively. 5.75% is the maximum sales charge on purchases of A shares.

The Fund’s investment adviser has contractually agreed to reduce and/or absorb expenses until at least December 31, 2024 for I, A, C and R6 Shares, to ensure that net annual operating expenses of the fund (excluding front-end and contingent deferred sales loads, leverage, interest and tax expenses, dividends and interest on short positions, brokerage commissions, expenses incurred in connection with any merger, reorganization or liquidation, extraordinary or non-routine expenses and the indirect costs of investing in other investment companies) will not exceed 1.25%, 1.50%, 2.25% and 0.99% respectively, subject to possible recoupment from the Fund in future years. For more information, please refer to the Fund’s summary prospectus and prospectus.

 

Distribution History

Distribution DateDistribution NAVLong-Term Capital GainShort-Term Capital GainReturn of CapitalDividend IncomeDistribution Total
12/07/202310.67-0.03---
12/08/20229.790.24---0.24
12/9/202111.11---0.900.90
12/24/202010.12---0.650.65
07/22/202010.370.020.04--0.05
12/24/201910.230.010.02--0.21
12/13/20189.700.240.44-0.230.91
12/18/201710.26---0.170.17
12/21/20159.72---0.010.01

Info


Easterly Funds


EAB Investment Group
EAB specializes in risk mitigation strategies and works with hedge funds, family offices, high-net-worth individuals, investment companies and other advisors. EAB Investment Group uses equity and index option strategies based on a proprietary process with the goal to reduce portfolio risk and increase the probability of success. A deep understanding of options pricing enables EAB to manage carry and attempt to mitigate costs over time, and potentially optimize monetization.

 


2011

Philadelphia, PA

Portfolio Manager(s)

Bill Visconto

Bill Visconto

Portfolio Manager
28 Years of Industry Experience


Head Volatility Trader, McGowan Investors LLC
Co-founder, Volare Capital
Head of Portfolio Management and Trading Operations, PFTC Trading

Ed Boll

Ed Boll

Non-Executive Chairman Officer
33 Years of Industry Experience


Co-founder, DC Trading Partners, LLC
Portfolio Risk Manager, Goldman Sachs SLK-Hull Derivatives Group
TFM Investment Group

Jim Ryan

Jim Ryan

President
38 Years of Industry Experience


Co-founder, RB Derivatives LP
Co-founder, Heard Trading, LLC

Documents

Statement of Additional Information

Download

Easterly Hedged Equity Fund Morningstar Rating

Overall 3-Year 5-Year
Morningstar Star Rating 3 3 3
# Funds in Category 215 215 103

© 2024 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

The Morningstar Rating™ for funds or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five- and 10-year (if applicable) Morningstar Rating metrics.

Morningstar Rating is for the C share class only; other classes may have different performance characteristics.

Latest Perspectives

Q4 2023 Hedged Equity Commentary

The 4th quarter ended what has been a somewhat surprising 2023 with a flourish. In many ways, the quarter’s story continued the year’s narrative of waiting for the Fed to turn dovish as disinflation gave credibility to the Fed’s efforts.

Learn More

Q3 2023 Hedged Equity Commentary

The Easterly Hedged Equity Fund (JDIEX) returned -1.19% vs -3.27% for the S&P 500 in Q3. YTD , the fund has a 7.61% return vs. 13.07% in the S&P. While volatility levels had been dropping for most of the year on more optimistic inflation, the Fed, economic growth scenarios and recent yield curve shifts, have called into question whether that is durable.

Learn More

External Link

You are now leaving the Easterly Funds website and entering a third party website. Please note that the Easterly Funds site window will remain open.

Continue Close

Easterly Perspectives

Sign up to receive our latest thoughts on the markets, written by our veteran fund managers.

Thank you for signing up for our newsletter!

Get in Touch

For questions or inquiries, please feel free to contact us by completing the form below.

For media inquiries, please contact press@easterlyfunds.com.

Get in Touch

For questions or inquiries, please feel free to contact us by completing the form below.

For media inquiries, please contact press@easterlyfunds.com.