Hatteras Long/Short Debt Fund

Fund Highlights

  • Fixed Income Diversifier
    An alternative investment strategy designed to diversify fixed income allocations
  • Managed Interest Rate Risk
    Actively managing portfolio duration to potentially limit drawdowns caused by changing interest rates
  • Multi-Manager Approach
    Managed by multiple hedge fund managers with experience executing long/short credit strategies

Fund Facts

  • Fund Assets: $27M
  • Inception Date: 5/2/2011

Share Classes

Share Class Ticker CUSIP
Class I HFINX 89833F680
Class A HFIAX 89833F201
Class C HFICX 89833F102
  • Minimum Investment: $1,000,000 (Class I)
  • Subsequent Investment: $250

Sub-Advisor

amundi_smith_breeden_logoAmundi Smith Breeden’s history is grounded in research and analytics. Founded in 1982, the company focused on interest rate risk and investment advisory services. Since 1989, Amundi Smith Breeden has awarded annual prizes for the top three papers featured in The Journal of Finance. In-depth quantitative research drives proprietary valuation and risk management systems. The investment strategies blend traditional macroeconomic analysis, fundamental credit analysis, and quantitative option-adjusted spread analysis.

Performance

 As of February 28, 2017 Ticker Month % YTD % 1 Yr % 3 Yr % 5 Yr % 10 Yr % Since Inception %
Class I HFINX -1.06 0.68 4.12 -4.67 -1.03 - -0.92
Class A (w/o sales charge) HFIAX -1.09 0.70 3.39 -5.17 -1.55 - -1.43
Class A (w/sales charge) HFIAX -5.74 -4.11 -1.54 -6.69 -2.51 - -2.55
Class C HFICX -1.24

0.56 2.82 -5.85 -2.26 - -2.15
HFRX RV: FI-Corporate Index - - - - - - - -
BofA ML 3Mo Treasury Bill - 0.05 0.09 0.39 0.18 0.15 - 0.12
As of December 31, 2016 Ticker Quarter % YTD % 1 Yr % 3 Yr % 5 Yr % 10 Yr % Since Inception %
Class I HFINX 1.80 -2.59 -2.59 -4.46 -0.50 - -1.06
Class A (w/o sales charge) HFIAX 1.60 -3.31 -3.31 -5.03 -1.06 - -1.59
Class A (w/sales charge) HFIAX -3.18 -7.89 -7.89 -6.56 -2.01 - -2.43
Class C HFICX 1.42 -4.01 -4.01 -5.70 -1.75 - -2.31
HFRX RV: FI-Corporate Index - - - - - - - -
BofA ML 3Mo Treasury Bill - 0.06 0.34 0.34 0.15 0.13 - 0.12
Average Annual Total Returns. Periods less than 1 year are not annualized. Inception Date: HFIAX and HFINX 05/02/2011; HFICX 10/01/2013. Since Inception performance for Class C is since 05/02/2011.

Performance data quoted represents past performance; past performance does not guarantee future results. Net Fund Operating Expenses borne by the investor and paid each year as a percentage of the investment’s value, are contractually capped at 1.99% for HFINX, 2.24% for HFIAX, and 2.99% for HFICX through at least June 30, 2017, excluding dividends on short positions and interest on borrowing, as well as other extraordinary expenses. Total Annual Fund Operating Expenses are 2.92% for HFINX, 3.17% for HFIAX and 3.92% for HFICX. 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 877.569.2382. The average annual returns shown above are historical and reflect changes in share price, reinvested dividends and are net of expenses. 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 C returns do not reflect a 1.00% contingent deferred sales charge which would be applied to shares sold within the first year of purchase and if reflected, would reduce the performance quoted. Class C Shares were not in existence prior to October 1, 2013. Performance for any periods prior to October 1, 2013, is based on the historical performance of the Class I Shares adjusted to assume the expenses associated with Class C Shares.

* 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

Hatteras Long/Short Debt 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
Applications PDF Icon
Tax Information PDF Icon
Holdings PDF Icon
XBRL PDF Icon

Important Disclosure 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 Fund. 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. 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.