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HRSTX - Rational Tactical Return Fund - bond substitute?

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:

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.


  • 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.
  • 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 ?
  • @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.
  • 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

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