With the Rational Iron Horse Fund, we are adding a proven lower volatility equity strategy to our fund lineup at a time when US equity markets are near all-time highs
Huntington, NY (PRWEB) April 26, 2017
Rational Funds, a family of funds rooted in the investment philosophy of applying a rational approach to investing, announced today the conversion of the Iron Horse Covered Call Fund into the Rational Iron Horse Fund (Tickers: IRHAX, IRHCX & IRHIX).
IRHAX is sub-advised by Van Hulzen Asset Management, LLC and maintains the same investment management team as its predecessor fund. The Fund invests in dividend-paying U.S. equities. The Fund uses call options with the goal of reducing portfolio volatility compared to the S&P 500 and other equity indices and creating incremental income. Van Hulzen, which has managed equity and covered call portfolios for over a decade, will employ its proprietary risk management process, which targets lower portfolio volatility.
“With the Rational Iron Horse Fund, we are adding a proven lower volatility equity strategy to our fund lineup at a time when US equity markets are near all-time highs,” said Jerry Szilagyi, CEO of Rational Funds. “This addition to Rational Funds’ portfolio advances our mission of offering investors funds rooted in the investment philosophy of applying a rational approach to investing.”
The Fund’s portfolio management team employs a fundamental process for selecting stocks driven by a return-on-capital framework that provides for quality comparisons of companies across industries, sectors and geography. Technical analysis is used as a proprietary mathematical process that focuses on trends in price measured over specific periods of time. Risk management techniques, including tolerable-risk models, values-at risk models and stop loss procedures are used to manage portfolio risk.
“We are joining the Rational Funds family because of a shared sense of purpose in delivering what we believe to be distinct, alternative and rational products to the market,” commented Craig Van Hulzen, CEO at Van Hulzen Asset Management, LLC. “Partnering with the Rational sales team gives us the opportunity to increase our sales and marketing presence so we can increase engagement with advisors and ensure we are educating people about the alternative space and our product.”
IRHAX is currently open for investments. For more information on the Fund and on Rational Funds, please visit: http://www.rationalmf.com or call 646-757-8063.
About Rational Funds
Rational Funds is a family of funds rooted in the investment philosophy of applying a rational approach to investing. Rational Funds currently offers seven mutual fund products, which employ rigorous research backed by sound academic theory, and a disciplined and systematic investment approach. The funds strive to deliver superior risk-adjusted returns, at the apex of successful modern portfolio strategies for today’s investor. For more information on Rational Funds and its mutual fund products, please visit: http://www.rationalmf.com.
Past performance does not guarantee future results.
There is no assurance that the Fund will achieve its investment objectives. The use of covered call strategies does not ensure profits or guarantee against losses.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Rational Funds. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling (800) 253-0412 or at http://www.RationalMF.com. The prospectus should be read carefully before investing. The Rational Funds are distributed by Northern Lights Distributors, LLC member FINRA/SIPC. Rational Advisors, Inc. is not affiliated with Northern Lights Distributors, LLC.
Volatility is a statistical measure of the dispersion of returns for a given security or market index. Volatility can either be measured by using the standard deviation or variance between returns from that same security or market index. Commonly, the higher the volatility, the riskier the security. S&P 500 Index is an unmanaged composite of 500 large capitalization companies. This index is widely used by professional investors as a performance benchmark for large-cap stocks. You cannot invest directly in an index. Mutual Funds involve risk including the possible loss of principal. There is no assurance that the Fund will achieve its investment objectives. Investments in foreign securities could subject the Fund to greater risks including, currency fluctuation, economic conditions, and different governmental and accounting standards. The use of leverage embedded in written options will limit the Fund’s gains because the Fund may lose more than the option premium received. Investments in lesser-known, small and medium capitalization companies may be more vulnerable than larger, more established organizations. Selling covered call or stock index options will limit the Fund’s gain, if any, on its underlying securities and The Fund continues to bear the risk of a decline in the value of its underlying stocks. Van Hulzen Asset Management is not affiliated with Northern Lights Distributors, LLC.
Alternative investments may not be suitable for all investors and an investment in alternative funds is suitable only for investors who can bear the risks associated with the illiquidity of the fund's shares and should be viewed as a long-term investment.