AlphaCentric has launched the AlphaCentric Hedged Market Opportunity Fund (HMXIX), a mutual fund converted from a hedge fund previously available only to accredited investors.
HMXIX provides an options-rooted strategy, making long and short investments in call and put options on instruments that reflect the S&P 500 and its volatility.
Using an algorithm developed via artificial intelligence programmes to analyse market data, the fund employs a systematic, rules-based options strategy that includes premium collection, volatility trading and trend following. The investment strategy seeks to mitigate risk by staggering position maturity dates and utilising exchange-traded options guaranteed for settlement.
“The AlphaCentric Hedged Market Opportunity Fund gives investors access to a proven equities-based options strategy with low volatility and low market correlation,” says Jerry Szilagyi (pictured), CEO of AlphaCentric. “HMXIX's strong track record is a perfect complement to the AlphaCentric family, having generated a 12.32 per cent annualised return since 2011.”
HMXIX has delivered strong performance during periods of equity market decline over the past five years. The fund has generated a 2.08 Sharpe Ratio, in comparison to 1.14 from the S&P 500 TR Index.
The fund retains the same portfolio manager, Russell Kellites, as its hedge fund predecessor.