Oak Harvest Long/Short Hedged Equity Strategy

The Oak Harvest Long/Short Hedged Equity Fund will invest primarily in equity securities of publicly traded growth companies with a market capitalization within the range of the S&P 500.  Emphasis will be placed on growth sectors of the economy such as Technology, Health Care, Consumer, and Financial Services.

Long equity positions will be primarily focused on companies exhibiting improving Sales, Margins, and Return (“SMR”) on Invested Capital (ROIC) preferably supported by a favorable secular tailwind as well as stable ROIC companies trading at substantial discounts to their organic growth rates.

The strategy has the flexibility to “sell short” equities of companies the manager deems to have poor or worsening fundamental prospects.  Short positions may focus on companies using aggressive or questionable accounting practices to inflate reported earnings as well as companies or industries experiencing unsustainably high and marginally declining margins and ROIC.

How does it work? S.M.R. Sales, Margins, Return of Investment Capital

Only listed index, sector, and single stock options can be used to hedge systematic market risk, sector exposure, and single stock risk, thereby reducing portfolio volatility when deemed appropriate.  Covered call writing may be used to generate income, reduce hedging costs, and mitigate single stock volatility.

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