Absolute Flexible Fund Institutional Shares (FLXIX)

Overview

The fund is designed to offer investors exposure to the convertible securities market, blending features of both equity and debt instruments to potentially provide a balanced approach to investment returns and risk management. By investing in convertible securities, which include debt securities and preferred stocks that can be converted into common stock, the fund aims to leverage the growth potential of equities while seeking to mitigate downside risk through the income and relative security traditionally offered by bonds. The fund's global investment strategy, encompassing both U.S. and foreign issuers, aims to diversify across geographic boundaries and market capitalizations, enhancing the potential for risk-adjusted returns. The flexibility to invest long or short in securities provides the fund with a versatile toolset to navigate various market conditions and capitalize on investment opportunities as they arise.

Products and Services

• Convertible Securities

  This mainstay of the fund's investment strategy involves securities that investors can convert into a predetermined number of common stock, usually at the discretion of the bondholder. These are often issued by companies looking to raise capital with potentially lower interest costs than would be possible with standard bonds while offering investors an avenue to participate in the equity’s upside potential.

• Debt Securities

  As a component of convertible securities, debt instruments offer investors a way to earn interest over a fixed period, adding a steady income stream and a layer of security to their investment portfolio. These instruments can be converted into equity at favorable moments, combining income and growth potential.

• Preferred Stocks

  Another form of convertible securities, preferred stocks provide dividends to investors before any dividends are provided to common stockholders. They can be an attractive option for investors looking for priority dividends, along with the option to convert into common stocks, typically sharing in the company's growth prospects.

• Long and Short Investments

  The fund's capacity to invest both long and short in securities across any market capitalization in the U.S. or abroad offers a flexible investment strategy. This allows the fund to profit from both rising and falling markets, providing a hedge against market volatility and enhancing return potential under a wide range of market conditions.

• Global Investment Strategy

  Investing in both U.S. and foreign companies allows the fund to tap into a broad array of market opportunities and sectors, potentially smoothing out risks that are region-specific and capitalizing on global economic trends. This diversified approach aims to optimize returns while managing exposure to geopolitical and currency risks.