Donoghue Forlines Momentum Fund Class I (MOJOX)

Overview

The adviser offers a financial strategy centered on a unique investment method aiming to balance the acquisition of high free cash flow assets with positive momentum against short-term treasury holdings. This strategy is implemented through a meticulous adherence to the FCF Risk Managed Sector Neutral Momentum Index's structured criteria. This index is designed to dynamically allocate investment between equity positions in entities showcasing robust free cash flow and positive growth momentum, and conservatively into short-term treasuries, based on market trends. The decision to fully allocate investments to the equity portfolio is guided by the positive indication of a shorter-term exponential moving average indicator, signifying a bullish market condition. This approach not only aims at capitalizing on the growth potential of high-performing companies but also seeks to offer a buffer against market volatility by incorporating short-term treasuries during less favorable conditions.

Products and Services

• FCF Risk Managed Sector Neutral Momentum Index Tracking

  This product is at the heart of the adviser's strategy, involving a meticulous investment process that aims to mirror the performance of the FCF Risk Managed Sector Neutral Momentum Index. This index is renowned for its strategic methodology in allocating assets. It favors investments in issuers with significant free cash flow and a trajectory of positive momentum, ensuring a robust foundation for the fund's equity portfolio. The allocation to these securities is methodically adjusted based on their performance and market conditions, embodying a sector-neutral stance to mitigate undue market risk and volatility.

• Equity Portfolio Management based on Bullish Indicator

  Central to the adviser’s service offering is the management of the equity portfolio through a disciplined investment approach that leverages a shorter-term exponential moving average indicator to signal bullish market periods. During such times, the fund commits 100% of its allocation to its equity portfolio, comprising issuers that demonstrate high free cash flow and positive momentum. This strategic positioning aims to optimize growth opportunities in favorable market conditions, leveraging the indicators to time entry and exit, thereby maximizing potential returns for investors.

• Short-Term Treasuries Allocation

  In periods when the market exhibits less favorable conditions or when the short-term exponential moving average indicator suggests a bearish trend, the adviser tactfully shifts the fund’s investment towards short-term treasuries. This conservative pivot is designed to safeguard the fund’s capital by reducing exposure to equities and thus mitigating potential losses from a downturn. It acts as a strategic counterbalance within the portfolio, ensuring that investors have a modicum of stability and risk management in place amidst the inherently unpredictable nature of stock markets.