The ACM Dynamic Opportunity Fund looks to add alpha through our stock selection process. The Fund’s differentiated screening process lends itself to uncovering compelling stock opportunities. The initial screen identifies stocks experiencing meaningful breakouts – a combination of price movement and trading volume. Price and volume are analyzed in tandem to qualify as “meaningful”.
The second phase of the screening process is our ‘deeper dive’, and involves rigorous fundamental and qualitative analysis to ensure stocks represent high-quality companies. This multi-discipline investment process is designed to identify stocks with market leading potential and avoid pure momentum stocks.
Our long portfolio of stocks averages 30-50 positions that represent our best ideas. We focus on market leading stocks across all market capitalizations as well as style boxes (value vs. growth, etc).
We then overlay our dynamic hedging strategy to the portfolio, which is a rules-based hedge model used to adjust overall exposure to the market. This allows our Fund to be flexible and adjust our net exposure anywhere from 0% to 100% net long. Unlike most hedged equity funds, our Fund can be fully long in up markets and fully hedged in down markets.
We feel this two-pronged approach offers investors the best prospects for long-term capital appreciation, while also focusing on capital preservation during market downturns.
Alpha- The active return on an investment, gauges the performance of an investment against a market index or benchmark which is considered to represent the market’s movements as a whole
Long– the holder of the position owns the security and will profit if the price of the security goes up.
Mutual Funds involve risk including possible loss of principal. There is no assurance that the Fund will achieve its investment objectives.
ETF’s are subject to specific risks, depending on the nature of the underlying strategy of the fund. These risks could include liquidity risk, sector risk, as well as risks associated with fixed income securities, real estate investments, and commodities, to name a few. Investments in underlying funds that own small and mid-capitalization companies may be more vulnerable than larger, more established organizations.
Investments in foreign securities could subject the Fund to greater risks including, currency fluctuation, economic conditions, and different governmental and accounting standards. In addition to the risks generally associated with investing in securities of foreign companies, countries with emerging markets also may have relatively unstable governments, social and legal systems that do not protect shareholders, economies based on only a few industries, and securities markets that trade a small number of issues.
Purchased put options may decline in value or expire worthless and may have imperfect correlation to the value of the Fund’s portfolio securities. Written call and put options may limit the Fund’s participation in equity market gains and may amplify losses in market declines. The Fund will incur a loss as a result of a short position if the price of the short position instrument increases in value between the date of the short position sale and the date on which an offsetting position is purchased. The Fund’s losses are potentially large in a short position, written put or call transaction. If unhedged, written calls expose the Fund to potentially unlimited losses.
Investors should carefully consider the investment objectives, risks, charges and expenses of the ACM Dynamic Opportunity Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling 1-844-798-3833. The prospectus should be read carefully before investing. The ACM Dynamic Opportunity Fund is distributed by Northern Lights Distributors, LLC, member FINRA/SIPC. Northern Lights Distributors, LLC and Ascendant Capital Management, LLC are not affiliated.