Hatteras Long/Short Equity Fund
- Equity Diversifier
An alternative investment strategy designed to diversify equity allocations
- Designed to Provide Low Volatility
Seeks long-term capital appreciation while minimizing exposure to general equity market risk
- Multi-Manager Approach
Managed by multiple hedge fund managers with experience executing long/short strategies
- Fund Assets: $21M
- Inception Date: 5/2/2011
- Number of Underlying Managers: 3
As of September 30, 2016
Michael P. Hennen, CFA
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, CFA
Vice President, 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, 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).
Christian R. Gannon, CAIA
Senior Associate, Investment Management
Christian Gannon serves as an investment analyst for the team. Christian’s responsibilities include manager updates, prospective manager research, and database maintenance. Prior to joining Hatteras Funds, Christian worked at Wells Fargo as an Investment Analyst, where he supported senior portfolio managers within process involvement activities. Previously, he served as an intern at US Trust and Archer Investment Management in Raleigh, NC. Christian received both his Bachelor of Arts Degree in Business Administration and his Masters of Business Administration degree from Campbell University. Christian has also earned his designation as a Chartered Alternatives Investment Analyst (CAIA).
|As of February 28, 2017||Ticker||Month %||YTD %||1 Yr %||3 Yr %||5 Yr %||10 Yr %||Since Inception %|
|Class A (w/o sales charge)||HLSAX||0.91||3.99||5.92||-0.82||1.54||-||1.93|
|Class A (w/sales charge)||HLSAX||-3.90||-1.00||0.89||-2.42||0.55||-||1.08|
|HFRX Equity Hedge Index||-||-||-||-||-||-||-||-|
|S&P 500 TR Index||-||3.97||5.94||24.97||10.63||14.01||-||11.53|
|As of December 31, 2016||Ticker %||Quarter %||YTD %||1 Yr %||3 Yr %||5 Yr %||10 Yr %||Since Inception %|
|Class A (w/o sales charge)||HLSAX||-0.27||-7.17||-7.17||1.41||1.30||-||1.29|
|Class A (w/sales charge)||HLSAX||-5.01||-11.57||-11.57||-3.00||0.32||-||0.42|
|HFRX Equity Hedge Index||-||-||-||-||-||-||-||-|
|S&P 500 TR Index||-||3.82||11.96||11.96||8.87||14.66||-||11.52|
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 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%. 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 HLSAX and 1.99% for HLSIX through at least June 30, 2017 and exclude dividends on short positions and interest on borrowing, as well as other extraordinary items disclosed in the prospectus. Total Annual Fund Operating Expenses are 4.00% or HLSAX and 3.75% for HLSIX.
|Hatteras Long/Short Equity Fund|
|Statements of Additional Information|
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. 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 fund. Please refer to the summary prospectus or prospectus for more information about the Funds, 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 Funds 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.