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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 September 30, 2024. Based on risk-adjusted returns. Category: Options Trading out of 257 funds.

More Information

$12.46
10/4/2024

13.10%
10/4/2024
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
$187.2MM
ASSET CLASS
Alternative, Active Equity
MORNINGSTAR CATEGORY
Options Trading
BENCHMARK
S&P 500 TR
GROSS EXPENSES
2.78% View Disclosure
YTD NET EXPENSES
2.25% View Disclosure
CUSIP
470258807
View Glossary

Monthly Returns

1.22%14.19%21.36%9.13%8.09%5.92%
0.22%13.19%20.36%9.13%8.09%5.92%
1.10%10.77%18.80%7.19%7.37%-

Performance data quoted is historical.

The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions and does not guarantee future results. Returns for periods less than one year are cumulative, and results for other share classes will vary. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance cited. Investors cannot invest directly into an index. All classes of shares may not be available to all investors or through all distribution channels. For the most recent month-end performance, call 888-814-8180.

Gross expense ratio reflects the total annual fund operating expenses before any fee waiver and/or expense reimbursement. Net expense ratio reflects the fee waiver and/or expense reduction/reimbursement.

The Fund’s investment manager has contractually agreed to waive all or a portion of its advisory fee and/or pay expenses of the Fund to limit total annual Fund operating expenses (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) until at least December 31, 2024 for I, A, C and R6 Shares to ensure that net annual operating expenses will not exceed 1.44%, 1.69%, 2.44% and 1.18%, respectively. The fee waiver and/or expense reimbursement are subject to possible recoupment from the Fund in future years. For more information, please refer to the Fund’s summary prospectus and prospectus. Performance shown would have been lower without the fee waiver and/or expense reimbursement effect.

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

$12.46$0.48$12.46$14.10

Performance data quoted is historical.

The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions and does not guarantee future results. Returns for periods less than one year are cumulative, and results for other share classes will vary. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance cited. Investors cannot invest directly into an index. All classes of shares may not be available to all investors or through all distribution channels. For the most recent month-end performance, call 888-814-8180.

Gross expense ratio reflects the total annual fund operating expenses before any fee waiver and/or expense reimbursement. Net expense ratio reflects the fee waiver and/or expense reduction/reimbursement.

The Fund’s investment manager has contractually agreed to waive all or a portion of its advisory fee and/or pay expenses of the Fund to limit total annual Fund operating expenses (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) until at least December 31, 2024 for I, A, C and R6 Shares to ensure that net annual operating expenses will not exceed 1.44%, 1.69%, 2.44% and 1.18%, respectively. The fee waiver and/or expense reimbursement are subject to possible recoupment from the Fund in future years. For more information, please refer to the Fund’s summary prospectus and prospectus. Performance shown would have been lower without the fee waiver and/or expense reimbursement effect.

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

4.88%14.19%21.36%9.13%8.09%5.92%
3.88%13.19%20.36%9.13%8.09%5.92%
2.70%7.25%13.38%5.86%6.58%-

Performance data quoted is historical.

The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions and does not guarantee future results. Returns for periods less than one year are cumulative, and results for other share classes will vary. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance cited. Investors cannot invest directly into an index. All classes of shares may not be available to all investors or through all distribution channels. For the most recent month-end performance, call 888-814-8180.

Gross expense ratio reflects the total annual fund operating expenses before any fee waiver and/or expense reimbursement. Net expense ratio reflects the fee waiver and/or expense reduction/reimbursement.

The Fund’s investment manager has contractually agreed to waive all or a portion of its advisory fee and/or pay expenses of the Fund to limit total annual Fund operating expenses (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) until at least December 31, 2024 for I, A, C and R6 Shares to ensure that net annual operating expenses will not exceed 1.44%, 1.69%, 2.44% and 1.18%, respectively. The fee waiver and/or expense reimbursement are subject to possible recoupment from the Fund in future years. For more information, please refer to the Fund’s summary prospectus and prospectus. Performance shown would have been lower without the fee waiver and/or expense reimbursement effect.

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%
HEDGED EQUITY FUND C (JDCEX) with load12.56%-4.73%9.23%5.08%9.81%-0.56%4.43%0.12%
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 past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions and does not guarantee future results. Returns for periods less than one year are cumulative, and results for other share classes will vary. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance cited. Investors cannot invest directly into an index. All classes of shares may not be available to all investors or through all distribution channels. For the most recent month-end performance, call 888-814-8180.

Gross expense ratio reflects the total annual fund operating expenses before any fee waiver and/or expense reimbursement. Net expense ratio reflects the fee waiver and/or expense reduction/reimbursement.

The Fund’s investment manager has contractually agreed to waive all or a portion of its advisory fee and/or pay expenses of the Fund to limit total annual Fund operating expenses (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) until at least December 31, 2024 for I, A, C and R6 Shares to ensure that net annual operating expenses will not exceed 1.44%, 1.69%, 2.44% and 1.18%, respectively. The fee waiver and/or expense reimbursement are subject to possible recoupment from the Fund in future years. For more information, please refer to the Fund’s summary prospectus and prospectus. Performance shown would have been lower without the fee waiver and/or expense reimbursement effect.

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

7.40% 

Sharpe Ratio

0.69 

Sortino Ratio

1.07 

Max Drawdown

-8.47% 

Worst Quarter

-7.04% 

Upside Capture Ratio

41.16% 

Downside Capture Ratio

35.74% 

View Glossary

Strategy Statistics

CallsLong PutsShort Puts
Percent Hedged With Options100%>140%
Weighted Average Days to Expiration 22.6821.00
Weighted Average Moneyness2.46%-1.66%-6.60%
Call Premium to Earn0.25%NA
Put Premium CostNA0.87%

Performance data quoted is historical.

The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions and does not guarantee future results. Returns for periods less than one year are cumulative, and results for other share classes will vary. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance cited. Investors cannot invest directly into an index. All classes of shares may not be available to all investors or through all distribution channels. For the most recent month-end performance, call 888-814-8180.

Gross expense ratio reflects the total annual fund operating expenses before any fee waiver and/or expense reimbursement. Net expense ratio reflects the fee waiver and/or expense reduction/reimbursement.

The Fund’s investment manager has contractually agreed to waive all or a portion of its advisory fee and/or pay expenses of the Fund to limit total annual Fund operating expenses (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) until at least December 31, 2024 for I, A, C and R6 Shares to ensure that net annual operating expenses will not exceed 1.44%, 1.69%, 2.44% and 1.18%, respectively. The fee waiver and/or expense reimbursement are subject to possible recoupment from the Fund in future years. For more information, please refer to the Fund’s summary prospectus and prospectus. Performance shown would have been lower without the fee waiver and/or expense reimbursement effect.

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 Investment Partners


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 Managers

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 4 3
# Funds in Category 257 257 124

© 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

Q2 2024 Hedged Equity Commentary

While much of the optimism around Fed policy moving towards a dovish bias was removed in Q1 2024, there was further uncertainty in the interplay between the inflation data and Chair Powell’s messaging. Ultimately, economic data did not clearly signal the weakening of the economy, labor, or inflation.

Learn More

Q1 2024 Hedged Equity Commentary

2024 began with optimism due to market expectations of 6 Fed eases for the year. However, strong economic growth and labor data gave little indication a recession was a possibility. As December Fed minutes were analyzed and inflation readings came in, it became clear that the market was getting ahead of itself in terms of easing expectations.

Learn More

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

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