Connors Hedged Equity Fund Institutional Class (CVRDX)

Overview

The fund is an investment vehicle that aims to generate returns for investors by allocating capital to a curated mix of equity securities. Specifically, it targets the shares of large-cap and mid-cap U.S. companies, demonstrating a strategy that balances risk through diversification across various market sectors. The fund's approach also includes the use of derivatives, such as put options and put spreads, on broad-based securities indexes as a hedge against potential market downturns. This careful selection of equity securities, combined with strategic risk management techniques, is designed to create a robust investment option for those looking to engage with the dynamic nature of U.S. equity markets.

Products and Services

• Equity Securities Investment

The fund's core offering involves investing in a finely selected portfolio of equity securities, which primarily includes common stocks from U.S. companies with large and mid-sized market capitalizations. The selection process aims to incorporate approximately 40-50 equity securities, ensuring a broad exposure across various sectors to mitigate sector-specific risks and capitalize on sectoral growth opportunities.

• Risk Management through Derivatives

In addition to direct equity investments, the fund employs protective strategies to manage and mitigate potential investment risks. It occasionally purchases put options or engages in put spread strategies on large-cap, broad-based securities indexes. These financial instruments provide the fund with the ability to offset some of the risks associated with unforeseen declines in the value of its equity holdings, thereby offering a safeguarded investment vehicle to its stakeholders.