Rational Funds, a family of funds rooted in the investment philosophy of applying a rational approach to investing, has converted the Rational Real Strategies Fund into the Rational Hedged Return Fund (HRSTX).
The fund is now sub-advised by Warrington Asset Management and implements an options-based strategy that primarily invests in long and short call and put options on futures contracts on the S&P 500 Index.
“The Rational Hedged Return Fund relies on a proven investment strategy previously offered only as a separately managed account,” says Scott Kimple, Portfolio Manager of HRSTX. The Fund seeks total return consisting of long-term capital appreciation and income. The Fund seeks to achieve its objective through premium collection from options, volatility trading designed to hedge or profit from either an increase or a decrease in S&P 500 index volatility, and trend following.
“We believe that the traditional asset allocation model of long-only stocks and bonds does not adequately position investors’ portfolios for the risks and opportunities in today’s global markets,” says Jerry Szilagyi (pictured), CEO of Rational Funds. “We are excited to partner with Warrington Asset Management to manage the Rational Hedged Return Fund with a strategy designed to produce returns that are not correlated with equity market returns.”
