Toews Hedged U.S. Opportunity Fund (THSMX)

Overview

The fund described focuses on investments that primarily include equity index futures contracts on equity indices comprised of U.S. small and mid-cap issuers, as well as directly investing in small and mid-cap stocks. Additionally, it invests in ETFs targeting these segments alongside investment-grade fixed-income securities, cash equivalents, and futures contracts targeting both investment-grade fixed-income securities and U.S. treasury securities. This strategy allows the fund to diversify its portfolio across both equity and fixed income assets, aiming to capture growth through small and mid-cap investments while also seeking stability via fixed-income securities.

Products and Services

The fund offers a diversified investment approach, focusing on several key areas:

• Equity Index Futures Contracts: These are primarily on indices comprising U.S. small and mid-cap issuers. This allows investors exposure to the growth potential of small and mid-sized companies through futures markets, offering potential leverage and liquidity.
• Small and Mid-Cap Stocks: Direct investment in small and mid-cap stocks aims to tap into the growth potential of these companies, which often exhibit higher growth rates than their larger counterparts.
• ETFs: The fund invests in Exchange Traded Funds (ETFs) that primarily target small and mid-cap issuers. ETFs offer the benefit of diversification within the targeted market segment, reducing the risk associated with individual stocks.
• Investment Grade Fixed Income Securities: These securities provide a balance to the portfolio by offering a steady income stream and reduced risk compared to equity investments. This includes bonds and other debt instruments that are considered to have a low risk of default.
• Cash Equivalents and Futures Contracts on Investment Grade Fixed-Income Securities: Cash equivalents offer liquidity and safety, while futures contracts on investment-grade fixed-income securities provide a way to hedge against market fluctuations and interest rate risks.
• U.S. Treasury Securities: Investing in U.S. Treasury securities adds a level of safety and predictability to the portfolio, as these are backed by the full faith and credit of the U.S. government. It’s also a means to gain exposure to risk-free interest rates.
• Stocks of U.S. Small and Mid-Cap Issuers: Besides futures contracts and ETFs, direct investment in stocks of U.S. small and mid-cap issuers offers the potential for significant growth, capturing the dynamic nature of these companies.