The addition of the Braver Tactical Opportunity Fund to a portfolio can offer risk controls and proactive action to help diversify from a traditional, fully-invested portfolio while still providing for the opportunity of competitive returns.
Needham, MA (PRWEB) August 09, 2012
Braver Capital Management announced the launch of their first ever mutual fund, The Braver Tactical Opportunity Fund. The fund seeks to build upon its long history of separate account tactical asset management dating back to 1987. The Fund uses eleven proprietary computer models to determine whether to be invested in the financial markets or to be tactically invested in cash if markets are volatile or trending downward.
The Braver Tactical Opportunity Fund is available as a no-load, N class of shares and trades under the ticker symbol BRAVX. The minimum initial investment is $1,000 with automatic contributions allowed in the fund.
The investment objective of the Fund is to seek long term capital appreciation with an emphasis on capital preservation and risk control. The Fund employs proprietary computer models that tactically diversify the assets broadly among eleven different equity assets classes or cash. The portfolio managers run the computer models that analyze price trends of the underlying asset classes on a daily basis to determine which asset classes are in buy or sell positions. If the models are signaling positive trends and momentum in the underlying asset class, an investment is made in the exchange-traded fund (ETF) that provides the best exposure to the asset class at the lowest cost. If the models are signaling weak trends, a sell signal is identified and the positions can be tactically shifted to the safety of cash— seeking to mitigate risk and avoiding market corrections. The maximum equity exposure in the portfolio is 100% and the maximum cash position is 100%.
Andrew Griesinger, Chief Investment Officer and Charles M. Toole, CFA, CFP® are the portfolio managers of the strategy and will manage the fund.
Andrew Griesinger commented, “At this time of great uncertainty in the world characterized by high volatility and high investor anxiety, we are pleased to offer our unique risk-controlled solutions to a broader investor base through the Fund. We recognize that investors are nervous and that they need solutions that can help them manage today’s market risk and volatility while still having the opportunity for growth and a competitive return. Our firm and our models were originally built in 1987 on the belief that it is more important for investors to avoid major negative returns than it is to capture every penny in an up market. Consistent compounding of positive investment returns is the critical component to investor success. After the severe market declines that have been experienced throughout this century, investors are realizing the importance of safety and the importance of avoiding major drawdown. We are pleased to be able to offer our risk controlled solutions to the marketplace through the Fund.”
The Fund offers the opportunity to invest in the equity markets for the potential of competitive investment returns. Equally as important is that all the models have built in risk controls to limit losses and protect gains. The decisions to move to cash are based on patterns that the models have identified where markets have historically not yielded positive returns on a risk adjusted basis.
Charlie M. Toole, CFA, CFP® and Portfolio Manager commented, “Investors want their investment managers to take action and protect their capital if the markets continually fall. Sitting idly by and staying fully invested is not acceptable in rapidly declining markets. The addition of the Braver Tactical Opportunity Fund to a portfolio can offer risk controls and proactive action to help diversify from a traditional, fully-invested portfolio while still providing for the opportunity of competitive returns. We believe the low correlation to the broad equity market and our ability to utilize cash in attempt to protect capital adds true diversification and lower volatility to a portfolio.”
The firm’s President and Chief Market Strategist, David J. D’Amico, CFA summarized the firm’s offering and decision to establish a mutual fund as follows: “We have been a leader in the marketplace, offering real, implementable solutions seeking to help investors preserve and grow their capital, especially through difficult times. This success affords us the opportunity to offer our services to a wider investor base, to help relieve investors’ anxiety, and help them meet their goals. As a boutique investment manager, it is often difficult for investors to find our solutions. The addition of a publicly traded mutual fund will allow investors to more easily access our capabilities. We are pleased to be able to help more investors in this time of uncertainty.”
About Braver Capital Management
Braver Capital Management is an unincorporated division of Braver Wealth Management, LLC, an SEC registered investment advisor based in Needham, Massachusetts. The firm was originally founded in 1987 and has a long standing history of providing risk-controlled, tactical investment solutions to the investment community. Additional information is available at http://www.braverfunds.com.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Braver Tactical Opportunity Fund. This and other important information about the Fund is contained in the prospectus, which is available on the website http://www.braverfunds.com or by calling 617-969-0223. The prospectus should be read carefully before investing. The Braver Tactical Opportunity Fund is distributed by Northern Lights Distributors, LLC, a member of FINRA.
Mutual Funds involve risk including the possible loss of principal. There can be no assurance that the Fund and the Advisor will achieve the Fund’s investment objective. The Fund invests in ETFs, which are subject to specific risks, depending on the nature of the underlying strategy of the fund. In addition, due to transactions via market prices rather than at net asset value, the performance of an ETF may not completely replicate the performance of the underlying index. The Fund is a “fund of funds,” a term typically used to describe an investment company whose principal investment strategy involves investing in other investment companies, such as ETFs. The cost of investing in the Fund will be generally be higher than the cost of investing directly in the ETFs or other investment company shares. As to the portion of the portfolio invested in ETFs, closed-end investment companies, equities and fixed income securities, turnover may result in higher brokerage commissions, dealer mark-ups and other transaction costs. The risks associated with the Fund include interest rate risk, which means that the prices of the Fund’s investments are likely to fall if interest rates rise. To the extent the Fund invests in the stocks of small and medium capitalization companies or ETFs that invest in such companies, the Fund may be more volatile than larger companies. The fund can be subject to growth risk and value investing risk. The fund has risk related to limited operation history as the Fund is new enterprise with no operating history.