HCM Tactical Growth Fund Investor Class (HCMDX)

Overview

The described fund adviser operates with a dynamic investment strategy aimed at achieving its investment objectives through a diversified portfolio. The core philosophy revolves around adapting to market trends and conditions, thereby offering a flexible investment approach. Investments are made across a wide range of assets, including domestic equity securities of any market capitalization, investment companies such as mutual funds, closed-end funds, and ETFs, as well as cash and cash equivalents. The use of put and call options is integrated into the strategy to hedge equities and reduce volatility, highlighting a risk-aware approach. The allocation between different asset classes can vary significantly, ranging from 0% to 100% in either equities or cash and cash equivalents/options, based on the analysis of market trends through the proprietary HCM-BuyLine®. This methodology allows for adaptability, aiming to optimize returns while managing market risk.

Products and Services

• Domestic Equity Securities

  Investments in domestic equity securities encompass a broad spectrum of market capitalizations. This allows the fund to diversify its portfolio and tap into the growth potential of various companies, from large established corporations to smaller, high-growth entities, depending on market conditions.

• Investment Companies

  The fund allocates part of its portfolio to investment companies, including mutual funds, closed-end funds, and ETFs. This strategy provides additional layers of diversification and access to a broad array of assets and investment styles, managed within these collective investment vehicles.

• Cash and Cash Equivalents

  Part of the fund's assets may be kept in cash and cash equivalents, offering liquidity and a safety net during market downturns. This position can range from 0% to 100% of the fund's portfolio, allowing for significant flexibility in response to the market’s condition.

• Put and Call Options

  The strategic use of put and call options serves as a method to manage and hedge the fund's exposure to market volatility. These derivatives are used both to protect the equity positions and potentially to leverage market opportunities, hence playing a critical role in the risk management framework of the fund.

• HCM-BuyLine®

  The proprietary HCM-BuyLine® methodology is instrumental in determining the allocation of the fund’s portfolio. By analyzing market trends, this approach guides the decision on the proportion of investment in equities versus cash and equivalents/options, aiming at capturing growth in bullish conditions and protecting capital during downturns.