COUNTERPOINT TACTICAL EQUITY FUND
The Counterpoint Tactical Equity Fund seeks to provide capital appreciation while managing downside risk. The Fund invests in individual stocks that have exposure to multiple market anomalies, while using a tactical model to dynamically adjust portfolio risk.
The Fund selects the particular stocks on which to go long and short based on quantitative models. The models are based on proprietary research related to economic indicators found in peer-reviewed academic journals. The target portfolio typically holds:
- More than 600 individual securities
- Invests in both US and International developed-market stocks
- Targets sector and currency neutrality.
The Fund may invest in a wide variety of research-driven indicators, including valuation, fundamental, and under-reaction based effects. More information on such indicators, or investment anomalies, may be found here.
Tactical Risk Management
Using a disciplined tactical market model based on trend-following methodologies, the Fund seeks to avoid downside risk by alternating between “Risk On” (0.80 to 0.85 beta to S&P 500) and Defensive (zero beta to S&P 500, plus 30% treasuries) target asset allocations.
Historical analysis suggests that when the model signaled to reduce equity risk, the following month’s realized market volatility in avoided equities was on average 96% higher versus when the model signaled to hold equities.
Ph.D. in Finance, Northwestern University
MBA, University of California San Diego
Performance of the fund may be found on the Tactical Equity Performance and Holdings Page.
The Fund’s investment adviser has contractually agreed to reduce its fees and/or absorb expenses of the Fund, at least until January 31, 2019 to ensure that the net annual fund operating expenses exclusive of Acquired Fund Fees and Interest/Dividends on Short Sales will not exceed 2.00%, 2.75%, and 1.75% attributable to Class A, Class C, and Class I shares, subject to possible recoupment from the Fund in future years. Without these waivers and expense exclusions, the Fund’s total annual operating expenses would be 2.19%, 2.94%, and 1.94% attributable to Class A, Class C, and Class I shares.