What is the Oak Harvest Long/Short Hedged Equity Fund?

The Oak Harvest Long/Short Hedged Equity Fund (OHFGX) is an open-end mutual fund registered under the ’40 Act.  The fund’s objective is to provide high risk-adjusted equity returns.  The fund is no load and has a single, institutional share class.

OHFGX packages three equity strategies into one “all weather” equity fund.

The primary driver of the funds potential return.

  1. “Quantamental” stock analysis combining both quantitative and fundamental research.
  2. Disciplined single stock selection backed by a team of seasoned investment managers.
  3. Stock position sizing optimized for potential return and volatility.
  4. Sector and industry diversification.

A secondary driver of potential fund return, added downside risk management, and potential volatility reduction.

  1. “Quantamental” process reversed to expand investment universe to focus on negative characteristics and potential outcomes.
  2. Greatly expands OHFGX available investment universe.
  3. Allows the investment team to express a negative view on a stock or sector.
  4. OHFGX’s short equity strategy is seeking to add positive return to the portfolio.

Primary driver seeking capital preservation and volatility reduction.

  1. Capital efficient means to hedge what portfolio managers can’t control, market risk.
  2. Uses only listed options contracts.
  3. Requires high horsepower analytic modeling capabilities which the managers have previously developed and used in managing large institutional funds.
  4. Manages overall portfolio risk in a dynamic fashion and is “self-adjusting”.

Benefits of this fund and hedging structure:

  1. Inversely correlated to stock prices
  2. Self-adjusting: getting smaller when not beneficial and larger when insurance is desired.
  3. Hedging and insurance costs can be partially offset by a covered call writing program.
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