Belmont Theta Income Fund Institutional Class Shares (BTIFX)

Overview

The described fund is a financial entity focusing on a specialized investment strategy primarily using collateralized put spread options on U.S. indices, notably the S&P 500® Index. This method involves the writing or selling of put options while simultaneously buying put options with a lower strike price, creating a spread, which allows for limiting potential losses. The strategy is designed to generate returns through the premiums collected on these options. Besides its emphasis on options, the fund maintains investments in various fixed income instruments to provide stability and mitigate risk. These instruments include cash holdings, investment grade money market instruments, and U.S. Treasury obligations. Additionally, the fund has the capability to purchase call options on U.S. indices, including the VIX, to possibly capitalize on market volatility, further diversifying its investment approach and potential sources of return. This dual focus on both derivative strategies and fixed income investments outlines the fund's comprehensive approach to asset management, aiming to balance risk while seeking to maximize returns for investors.

Products and Services

• Collateralized Put Spread Options on U.S. Indices

  This product involves the strategic writing of put spread options, particularly on major U.S. indices such as the S&P 500® Index. Utilizing a collateralized approach limits potential losses by ensuring that the fund holds sufficient reserves or securities to cover the positions. This method is designed to benefit from the premiums received from the options, contributing to the fund's overall return.

• Fixed Income Instruments

  The fund's portfolio also includes investments in fixed income instruments, which serve as a means to balance the overall investment risk and provide stability. These investments typically comprise cash, investment-grade money market instruments, and U.S. Treasury obligations. This component of the fund's strategy aims to provide a steady income stream, adding a layer of security to the investment portfolio.

• Call Options on U.S. Indices

  In addition to put spread options, the fund may invest in call options on U.S. indices, including potentially volatile indices such as the VIX. Purchasing call options allows the fund to speculate on the upward movement of these indices, providing a potential avenue for profit if the indices increase in value. This approach leverages market volatility as an opportunity, aligning with the fund's overall strategy to diversify investments and optimize returns.