Hatteras Funds Enhances Managed Futures Strategies Fund

Restructures and reduces fees for investors

RALEIGH, N.C.--()--Hatteras Funds, a provider of unique alternative investment solutions for Financial Advisors and their clients, announced today that it has restructured its Managed Futures Strategies Fund (HMFIX) in order to provide greater transparency and reduce overall fund expenses for investors. Hatteras has cut fees by 20% bringing the total overall expense ratio to 1.99% for the I shares.

The Hatteras Managed Futures Strategies Fund (HMFIX) is a multi-manager solution that offers Financial Advisors and their clients a portfolio diversification tool with the benefits of low correlation to traditional stocks and bonds. The Fund provides access to two experienced investment managers, ROW Asset Management (an experienced multi-strategy program) and Revolution Capital Management (a short to intermediate term Commodity Trading Advisor), each with a long track record and expertise in specialized managed futures strategies across markets, models and time frames. When combined, these managers provide the potential for enhanced risk-adjusted returns. Over the 1-year period, the Fund ranks in the top 10% of all Funds in the Morningstar Managed Futures category.

“As the industry continues to evolve, we are excited to now be able to offer Financial Advisors and their clients access to managed futures strategies with greater transparency and at a reduced fee,” said David Perkins, CEO of Hatteras Funds. “We believe the Fund’s dedicated allocation to specialized strategies with an emphasis on short-term models provides a valuable complement to the many traditional long-term trend following funds that dominate the industry. At Hatteras, we believe in delivering solutions that meet the needs of Financial Advisors and their clients. The Hatteras Managed Futures Strategies Fund provides low correlation to traditional stocks and bonds and because of its mutual fund structure makes these strategies available to a greater number of Advisors and their clients.”

For more information, please contact Jessica Sherburne at 919.846.2324 or jessica.sherburne@hatterasfunds.com

About Hatteras Funds

Hatteras Funds provides unique alternative investment solutions for Financial Advisors and their Clients. We believe that all investors should have access to the same sophisticated investment approach and superior portfolio management talent as the largest institutions. A boutique alternative investment specialist founded in 2003, Hatteras Funds offers a suite of innovative products designed to help allocate to alternative investments. For more information, please visit hatterasfunds.com.

Annualized 3 Month Diversified
Returns     HMFIX     T-bills     CTA Index
QTD 5.5% 0.1% 3.4%
1-Year 3.0% 0.1% -2.1%
3-Years 1.9% 0.1% 1.7%
Inception 0.6% 0.1% 0.4%

Performance data quoted represents past performance; past performance does not guarantee future results. Net Fund Operating Expenses are contractually capped at 1.99% for HMFIX through at least April 30, 2017, excluding dividends on short positions and interest on borrowing, as well as other extraordinary expenses. Total Annual Fund Operating Expenses are 2.85% for HMFIX. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. To obtain performance information current to the most recent month end please call 877.569.2382. The average annual returns shown above are historical and reflect changes in share price, reinvested dividends and are net of expenses.
Average annual total returns. Periods less than one year are cumulative.
1. Inception date for HFMIX is September 27, 2012.
Diversification does not assure a profit or protect against loss.

Investors should consider the Funds’ investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other important information about the Funds and may be obtained by clicking here or calling 866.388.6292. Read it carefully before investing.

As of March 31, 2016, the Morningstar Managed Futures Category has 170 funds in the 1-year time period. Rank criteria is based on performance net of fees and expenses.

The BofA Merrill Lynch 3-Month U.S. Treasury Bill Index is an unmanaged market index of U.S. Treasury securities maturing in 90 days that assumes reinvestment of all income.

The HFRX Macro: Systematic Diversified CTA Index is an uninvestible, unmanaged index that is comprised of strategies that have investment processes typically as function of mathematical, algorithmic and technical models, with little or no influence of individuals over the portfolio positioning. Strategies which employ an investment process designed to identify opportunities in markets exhibiting trending or momentum characteristics across individual instruments or asset classes.

Important Disclosure and Risk Factors

The Fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. The summary prospectus and prospectus contain this and other important information about the investment company, and may be obtained by calling 877.569.2382 or visiting hatterasfunds.com. Read it carefully before investing.

Exposure to the commodities markets through investment in managed futures programs may subject the Fund to greater volatility than investment in traditional securities. Certain hedging techniques and leverage employed in the management of the Fund may accelerate the velocity of possible losses. Short selling involves the risk of potentially unlimited increase in the market value of the security sold short, which could result in potentially unlimited loss for the Funds. Derivatives involve investment exposure that may exceed the original cost and a small investment in derivatives could have a large potential impact on the performance of the Fund. Options held in the Fund may be illiquid and the fund manager may have difficulty closing out a position. Fixed Income instruments are exposed to credit and interest rate risks. Investing in lower-rated (“high-yield”) debt securities involves special risks in addition to the risks associated with investments in higher-rated debt securities, including a high degree of credit risk and liquidity risk. The Fund may also invest in:

  • shares of other investment companies (affiliated) that invest in securities and styles similar to the Fund, resulting in a generally higher investment cost than from investing directly in the underlying shares of these funds;
  • shares of other non-affiliated investment companies primarily including ETFs.

The Fund intends to utilize these individual securities and hedging techniques in matched combinations that are designed to neutralize or offset the individual risks of employing these techniques separately. There is no assurance that these strategies will protect against losses. The Fund’s investment strategy may result in high turnover rates which may increase short-term capital appreciation and increase brokerage commission costs negatively impacting the Fund.

Because the Fund is a fund-of-funds, your cost of investing in the Fund will generally be higher than the cost of investing directly in the shares of the mutual fund in which it invests. By investing in the Fund, you will indirectly bear your share of any fees and expenses charged by the underlying fund, in addition to indirectly bearing the principal risks of the fund. Please refer to the summary prospectus or prospectus for more information about the Fund, including risks, fees and expenses.

Mutual fund investing involves risk; loss of principal is possible. Please consult an investment professional for advice regarding your particular circumstances.

An investment in the Fund may not be suitable for all investors. The Fund is offered only to United States residents, and information on this site is intended only for such persons. Nothing on this site should be considered a solicitation to buy or an offer to sell shares of the Fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.

Investing involves risk; loss of principal is possible. Please consult an investment professional for advice regarding your particular circumstances. An investment in the Funds may not be suitable for all investors.

Securities offered through Hatteras Capital Distributors, LLC, member of FINRA / SIPC, 6601 Six Forks Road Suite 340, Raleigh, NC 27615. Hatteras Capital Distributors, LLC is affiliated with Hatteras Funds, LP by virtue of common control/ownership.

HF 4-2016-26


Hatteras Funds
Jessica Sherburne, 919-846-2324

Release Summary

Hatteras Funds enhances Managed Futures Strategies Fund; restructures and reduces fees for investors.


Hatteras Funds
Jessica Sherburne, 919-846-2324