MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Categories

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

HRSTX - Rational Tactical Return Fund - bond substitute?

JD_co
in Fund Discussions
Back in Dec-2017, HRSTX instituted a strategy change. The results since then have been quite consistent, with 93% positive monthly returns since then. The worst monthly drawdown was -1.21%. The annual Return %'s are somewhat bond-like.

The Fund seeks to achieve its investment objective in three ways:

(1) Premium Collection – the Fund collects premiums on options it sells.
(2) Volatility Trading – the Fund may enter into positions designed to hedge or profit from either an increase or
a decrease in index volatility.
(3) Trend Following – the Fund may increase or decrease the balance of puts and calls based on trending market direction.

Factsheet link:
http://rationalmf.com/wp-content/uploads/funds/factsheets/Rational_Tactical_Return_Fund.pdf


The institutional version (HRSTX) is available at Fido, but with a TF.
Any comments/opinions on this fund are appreciated. Its one of the least volatile funds I've seen.

Comments

  • carew388carew388
    HRSAX is ntf at Schwab with $100 minimum. 3 year Sharpe Ratio of 2.63 is impressive. Beware that Schwab has a 90 day holding period to avoid transaction fees.
  • carew388carew388
    I'll post this here to generate some views. HMEAX has an overhanging cloud due to the bankruptcy filing of its owner. Is this a consideration, and also what guarantees are there that the fund's nav isn't inflated, like IQDAX or IOFAX ?
  • JD_co
    @carew, I think you have to really limit your allocation % for any 1 "alternative" fund if there is a lack of transparency or heavy derivative use (the dreaded "black box"). And also because many such funds tend to fall flat over time.

    I haven't sold any of my HMEAX/HMEZX yet, though I am disturbed by the principal's past behavior. I also allocate funds to MERFX and BALPX in that space to keep exposure low for any 1 fund.

    IQDAX was a reminder that even a mutual fund Mgr can dupe investors. Its a legit risk with these funds.
  • carew388carew388
    +1
  • FD1000
    Interesting fund. Sharpe+Sortino looks good, but after looking a bit more, performance for 2020-21 is not good enough for me to get excited


Sign In or Register to comment.