August 2025: Episode 2
Hi, and welcome to the August 2025 episode of The Long and The Short of It, our monthly update video for the Oak Harvest Long Short Hedged Equity Mutual Fund (FDX).
My name is James MacFarlane, joined by Chris Paris and Charles Schiavone. The three of us represent the portfolio management team.
For additional information, visit www.oakharvestfunds.com — the link is in the description below.
Before we get into the month of August, let’s take a look at how the fund is doing year-to-date. According to Morningstar, as of the end of August, the fund is up 11.75%, outperforming the S&P 500 ETF. It also ranks in the top 15th percentile year-to-date and the top 10% over a one-year period against its peer group.
One of our ongoing goals is to beat the S&P 500, so it’s always nice to be able to say that. With that said, let’s turn to the three questions we look at every month:
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What was the portfolio management team thinking heading into the month?
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What key investment actions did we take during the month?
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How did things play out for both the market and for FDX?
What Were Our Thoughts Heading Into August?
Chris Paris:
Thanks, James. When we were putting this together, it was a little hard because it was August — not earnings reporting season — so it’s kind of a blur looking back.
At the beginning of August, we’d come off the bottom in April — a V-bottom — and we were in a bull market. It’s kind of the Millennials and Gen Z bull market. Entering the fifth month off that bottom, we were really focused on earnings more than anything else.
We were hedging a little bit because the cost of volatility was pretty low, and we were just trying to play it one stock at a time and get prepped for earnings reports.
What Key Investment Actions Did We Take?
Charles Schiavone:
To piggyback off what Chris was saying, as we moved further through the earnings season, we focused on identifying our highest conviction ideas — preferably companies supported by secular tailwinds. We always aim to identify companies benefiting from favorable trends that support their growth in revenue and earnings.
We also used the period to cull underperformers and added several high-growth names that fit our framework.
In terms of themes:
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Communication Services: Social media, gaming, streaming (audio and video).
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Energy: The renaissance of nuclear power to support data centers and national energy needs.
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Financial Services: Growth in cryptocurrency trading, M&A activity, and a reopening IPO window benefiting investment banking.
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Industrials: Improving the power grid to meet demand from residential, commercial, and data center growth.
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Technology: Artificial intelligence, robotics, and quantum computing are core themes driving our long positions.
On the short side, we’ve remained stock-specific. The environment hasn’t been as favorable for shorting, but we focused on:
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Low-end consumer credit issues,
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Vacation rental names with regulatory concerns, and
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Telemarketing of compounded weight-loss drugs — an area of active short opportunities.
What’s unique about us is that in periods where it’s difficult to find short ideas, we don’t force them just to achieve a certain net exposure. Instead, we use our index options-based, actively managed market hedging program — the “third leg of the stool.” This allows us to hedge as much or as little market risk as needed, adding flexibility to our portfolio management.
The cost of hedging came down, and we had a productive program. We offset part of the hedging cost by selling covered calls on many of our long positions, which helps optimize performance.
Daily Portfolio Management
James:
It’s worth noting that we evaluate all three legs of the stool — longs, shorts, and hedges — every single day. Monitoring, managing, and measuring those aspects in real time is critical to what we do.
Chris:
Exactly. And one key example of the hedging program’s impact — if you looked at August 1st, the S&P 500 was down over 1.5%, and the fund was actually up that day because of the hedge. That’s an ideal day for the hedging strategy and exactly what we aim for.
How Did Things Play Out in August?
Charles:
The good news — we made money for our shareholders. The fund was up about 1%, while the S&P 500 gained around 1.8%. Growth stocks lagged, with the Nasdaq up 1.5%, while value and small caps led the month.
Despite the headwinds — since the Oak Harvest Long Short Fund is a growth-oriented fund — we still delivered positive returns. Small caps rallied on expectations of rate cuts, but our long-term focus remains consistent with our growth discipline.
Chasing styles month-to-month isn’t our philosophy; it’s better to stay true to process than to chase short-term trends.
Portfolio Highlights and Lowlights
Chris:
Among our winners:
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LegalZoom (LZ): Up over 23% after strong earnings and a short squeeze.
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Apple (AAPL): Up 12%, rebounding after lagging earlier in the year.
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Monolithic Power: A semiconductor and AI play, up nearly 18%.
On the losing side:
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Twilio (TWLO): Beat earnings but still fell 18%.
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Meta and Netflix: Both had weak August performances.
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Coherent (COHR): Despite decent results, a confusing conference call led to a 30% drop.
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Affirm (AFRM): Rose against our short thesis on low-end consumer weakness.
Shorting in a bull market is always challenging, so we manage positions carefully and adapt quickly.
Charles:
When we have a position go against us — long or short — we don’t let it sit. We make daily decisions about whether to hold, adjust, or exit, always prioritizing high-conviction positions and staying nimble.
Closing Thoughts
James:
We continue to focus on our core strategy: staying disciplined, emphasizing conviction, and striving to beat both the S&P 500 and our peer group.
Thank you, Charles and Chris, and thank you for watching. For more detailed information about investing with us, visit oakharvestfunds.com. The link is in the description below.
Thanks again for watching, and we’ll see you in the next video.
Mentioned Holdings 8-31-2025 and Top 10
OHFGX June 30 2025 Trailing Performance
Important Disclosures:
The content contained therein is informational purposes only. This information is not intended to provide tax or legal advice or personalized investment advice, nor is it an offer or solicitation to buy or sell securities. Views and opinions may change based on new information or analysis. Oak Harvest makes no assurance as to the accuracy of any forecast made. Figures, references, and data cited in all written and audio content are obtained from sources believed to be reliable, but we do not guarantee timeliness or accuracy of this information.
All investments involve risks, and we cannot guarantee any investment will achieve its objective. Investment in the Fund is not guaranteed by any government agency. You may lose money by investing in the Fund. Investing involves the risk of loss, and some strategies may not be right for you. Past performance does not guarantee future return. Please refer to the Fund prospectus for these and other important risks.
NOT FDIC INSURED – MAY LOSE VALUE – NO BANK GUARANTEE
This information is intended for US residents.
The information in this video does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial advisor/financial consultant before making any investment decisions.
Advisory services are provided through Oak Harvest Investment Services, LLC, a registered investment adviser. Oak Harvest is not affiliated with Ultimus Fund Distributors, LLC.
