Hussman Strategic Allocation Fund (HSAFX)

Overview

The fund is designed for investors seeking to achieve their investment objective by diversifying their assets across multiple classes, including common stocks, bonds, and cash equivalents. It operates with a strategic approach to asset allocation, which is carefully adjusted based on the current valuations and the anticipated future returns of each asset class. This method ensures that investments are positioned in a way that balances potential risks against opportunities for growth, adapting to changes in the market environment. The fund employs a mix of direct investments in individual securities and the use of derivatives, such as Treasury bond futures, to gain the desired exposure to bond markets. This approach provides the fund with the flexibility to swiftly adjust its portfolio composition in response to evolving market conditions and opportunities.

Products and Services

• Common Stocks

  Investing in common stocks forms a core component of the fund's strategy, offering potential for capital growth through equity ownership in corporations. This asset class is selected based on rigorous analysis of companies' financial health, market position, and growth prospects, aiming to maximize returns over the long term.

• Bonds

  The fund allocates a portion of its assets to bonds, providing a steady stream of income and serving as a counterbalance to the more volatile equity holdings. It accesses the bond markets either through direct purchases of individual bonds or indirectly via Treasury bond futures. This dual approach allows the fund to manage its exposure to interest rate movements and credit risks efficiently, tailoring its bond investments to reflect current market valuations and future return expectations.

• Cash Equivalents

  Cash equivalents, such as money market instruments, play a vital role in the fund's strategy, offering liquidity and safety of principal. This asset class provides a buffer against market volatility and ensures the fund has readily available funds to capitalize on investment opportunities as they arise or to meet redemption requests without disrupting its strategic asset allocation.