Hatteras Alpha Hedged Strategies Fund

Fund Highlights

  • Complete Alternative Investment Allocation
    Designed as a complete, turnkey, alternative investment allocation
  • Multi-Strategy, Multi-MangerApproach
    Provides exposure to multiple hedged strategies and managers in a single investment
  • Enhanced Diversification
    Seeks to provide low correlation and lower risk when compared to traditional investments

Fund Facts

  • Fund Assets: $37M
  • Inception Date: 9/23/2002
  • Number of Underlying Strategies: 4

Share Classes

Share Class Ticker CUSIP
Class I ALPIX 89833F680
Class A APHAX 89833F201
Class C APHCX 89833F102

Strategy Allocation

alpha_093016

As of June 30, 2017

Portfolio Management

Michael P Hennen Profile

Michael P. Hennen, CFA
Partner, Head of Investment Management

Michael Hennen serves as head of investment management. In this role, Mike oversees and provides strategic direction for Hatteras' investment team. In his role as portfolio manager, Mike’s responsibilities include asset allocation, portfolio construction, and risk management.

Prior to joining our team, Mike was a vice president at Morgan Stanley in the Graystone Research Group-- an alternative investments advisory group within Morgan Stanley-- where he led the sourcing, evaluation, execution, and monitoring of alternative investments across a variety of strategies. Before joining Morgan Stanley, Mike was an analyst at Morningstar in Chicago. He received his Bachelor of Business Administration degree in Finance from Western Michigan University. Mike has also earned his designation as a chartered financial analyst (CFA).


Thomas P. Riegert

Thomas P. Riegert, CFA
Partner, Director of Manager Research

Thomas Riegert’s primary responsibilities include hedge fund manager sourcing, research and due diligence, support of portfolio management, and macro-economic research for the Hatteras Alternative Mutual Funds. Prior to joining Hatteras, Tom was an Investment Manager and Assistant Vice President in Wealth Management at Wells Fargo in Charlotte, NC. Previously, Tom held positions at Evergreen Investments including Associate Portfolio Manager and Quantitative Research Analyst. Tom received his Bachelor of Business Administration in Finance and Marketing from Ohio University. Tom has also earned his designation as a Chartered Financial Analyst (CFA).

 

 

 


Bryan P. Lloyd

Bryan P. Lloyd, FRM
Senior Associate, Risk Management

Bryan Lloyd’s primary responsibilities include support of the portfolio management team, quantitative research and reporting, and manager due diligence. Prior to joining Hatteras Funds, Bryan participated in NSF-Funded Mathematics Research in the area of Partial Differential Equations at the University of North Carolina. Bryan graduated from the University of North Carolina at Chapel Hill with Honors in Mathematics and a Bachelor of Science degree in Mathematics.  Bryan has also earned his designation as a Financial Risk Manager (FRM).

  

  

  


 

Performance

  As of October 31, 2017 Ticker Month % YTD % 1 Yr % 3 Yr % 5 Yr % 10 Yr % Since Inception %
Class I ALPIX -0.27 3.18 4.47 -1.30 1.25 -0.43 2.50
Class A (w/o sales charge) APHAX -0.19 3.08 4.32 -1.64 0.72 -1.18 1.64
Class A (w/sales charge) APHAX -4.89 -1.83 -0.65 -3.22 -0.24 -1.61 1.36
Class C APHCX -0.20 2.40 3.65 -2.33 0.00 -1.92 0.88
BofA ML 3 Month T-Bill
- - - - - - - -
  As of September 30, 2017 Ticker Quarter % YTD % 1 Yr % 3 Yr % 5 Yr % 10 Yr % Since Inception %
Class I ALPIX 1.01 2.71 2.75 -1.62 0.95 -0.47 2.50
Class A (w/o sales charge) APHAX 0.95 2.60 2.55 -2.02 0.38 -1.24 1.63
Class A (w/sales charge) APHAX -3.88 -2.29 -2.36 -3.61 -0.59 -1.67 1.34
Class C APHCX 0.79 2.00 1.90 -2.69 -0.35 -1.98 0.86
BofA ML 3 Month T-Bill - - - - - - - -
HFRX Global Hedge Index - - - - - - - -
Average Annual Total Returns. Periods less than 1 year are not annualized. Inception date:  APHAX 05/02/2011; APHCX 08/01/2006; ALPIX 09/30/2011; HFRX Global Hedge Index and 3MTH T-Bills 09/30/2002. Since Inception performance for Class A and Class I are since 09/23/2002.

Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. To obtain performance information current to the most recent month-end, please call 866.388.6292. The average annual returns shown above are historical and reflect changes in share price, reinvested dividends and are net of expenses. Class C returns do not reflect a 1.00% contingent deferred sales charge on shares sold within the first year of purchase and if reflected, would reduce the performance quoted. The average annual returns for Class A Shares “with sales charge” give effect to the deduction of the maximum sales charge of 4.75%. Class A Shares were not in existence prior to May 2, 2011. Class I Shares were not in existence prior to September 30, 2011. Performance for any periods prior to the inception date of Classes A and I, are based on the historical performance of the No Load Shares adjusted to assume the expenses associated with Class A or I Shares, respectively. Net Fund Operating Expenses borne by the investor and paid each year as a percentage of the investment’s value, are contractually capped at 2.24% for ALPIX, and 2.49% for APHAX, and 3.24% for APHCX through at least June 30, 2017 and exclude dividends on short positions and interest borrowing, as well as other extraordinary items disclosed in the prospectus. Total Annual Fund Operating Expenses are 3.85% for APHAX, 4.60% for APHCX, and 3.60% for ALPIX.

* The Fund is subject to market risks.

Portfolio composition is subject to change at any time. Class I Shares require a $1MM minimum investment.

Literature

  Alpha Hedged Strategies Fund
Fact Sheet PDF Icon
Commentary PDF Icon
Summary Prospectus PDF Icon
Prospectus PDF Icon
Annual Report PDF Icon
Semi-Annual Report PDF Icon
Statements of Additional Information PDF Icon
New Account Application PDF Icon
IRA Application PDF Icon
IRA Transfer/Rollover Form
PDF Icon
Coverdell Education Savings Account Application PDF Icon
Tax Information PDF Icon
Holdings PDF Icon
XBRL PDF Icon
Information Statement PDF Icon

Important Disclosures and Risk Factors
Certain hedging techniques and leverage employed in the management of the Fund may accelerate the velocity of possible losses. Short selling involves the risk of potentially unlimited increase in the market value of the security sold short, which could result in potentially unlimited loss for the Funds. Derivatives involve investment exposure that may exceed the original cost and a small investment in derivatives could have a large potential impact on the performance of the Fund. Options held in the Fund may be illiquid and the fund manager may have difficulty closing out a position. Exposure to the commodities markets through investment in managed futures programs may subject the Fund to greater volatility than investment in traditional securities. Fixed Income instruments are exposed to credit and interest rate risks. Investing in lower-rated (“high-yield”) debt securities involves special risks in addition to the risks associated with investments in higher-rated debt securities, including a high degree of credit risk and liquidity risk. The Fund may also invest in:

  • smaller capitalized companies – subject to more abrupt or erratic market movements than larger, more established companies
  • foreign securities, which involve currency risk, different accounting standards and are subject to political instability;
  • securities limited to resale to qualified institutional investors, which can affect their degree of liquidity;
  • shares of other investment companies (affiliated) that invest in securities and styles similar to the Fund, resulting in a generally higher investment cost than from investing directly in the underlying shares of these funds;
  • shares of other non-affiliated investment companies primarily including ETFs.

The Fund intends to utilize these individual securities and hedging techniques in matched combinations that are designed to neutralize or offset the individual risks of employing these techniques separately. Some of these matched strategies include merger arbitrage, long/short equity, convertible bond arbitrage and fixed-income arbitrage. There is no assurance that these strategies will protect against losses.

Because the Fund is a fund-of-funds, your cost of investing in the Fund will generally be higher than the cost of investing directly in the shares of the mutual funds in which it invests. By investing in the Fund, you will indirectly bear your share of any fees and expenses charged by the underlying funds, in addition to indirectly bearing the principal risks of the funds. Please refer to the summary prospectus or prospectus for more information about the Fund, including risks, fees and expenses.

Mutual fund investing involves risk; loss of principal is possible. Please consult an investment professional for advice regarding your particular circumstances. An investment in the Fund may not be suitable for all investors.

The Fund is offered only to United States residents, and information on this site is intended only for such persons. Nothing on this site should be considered a solicitation to buy or an offer to sell shares of the Fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.