Hatteras Funds Celebrates the Three-Year Anniversary of Disciplined Opportunity Fund

The Fund Ranks in the top quartile versus its peer group

RALEIGH, N.C.--()--Hatteras Funds (“Hatteras”), a provider of unique alternative investment solutions for Financial Advisors and their clients, is celebrating the three-year anniversary of the Hatteras Disciplined Opportunity Fund (Class I: HDOIX). The Fund is designed to offer investors equity market exposure, while reducing volatility and limiting potential portfolio losses.

“We are excited that The Hatteras Disciplined Opportunity Fund has outperformed many of its peers since inception three years ago”

"We are excited that The Hatteras Disciplined Opportunity Fund has outperformed many of its peers since inception three years ago," says Mike Hutten, president of distribution for Hatteras Funds. "The Fund’s investors have benefited from the ability to maintain an equity allocation while mitigating their volatility. We believe it is a better way to invest in equities and certainly better than sitting on the sidelines in cash. Acertus Capital Management has delivered on its investment approach, as evidenced by the Fund’s strong peer ranking."

The Fund is an S&P 500 index-based options strategy that seeks to provide equity market exposure while offering investors the potential for downside protection and volatility mitigation. The Fund’s disciplined, systematic investment process seeks to produce a predictable return pattern that looks to consistently outperform the broader equity market on a risk-adjusted basis.

Acertus Capital Management, LLC manages the Fund’s investments. Based in Morristown, New Jersey, Acertus serves as Beacon Trust’s specialty alternative brand. Beacon Trust is a full service wealth management firm with approximately $2.5 billion in assets under administration and decades of proven success, superior solutions and exceptional client service. Acertus’ goal is to help investors avoid irrational decision-making traps associated with market timing and hasty, emotionally driven tactical asset allocation adjustments.

The Hatteras Disciplined Opportunity Fund (Class I shares) placed in the top 24th percentile (#28 out of 113 funds) for one-year performance and in the 25th percentile (#19 out 74 funds) for three-year performance in Morningstar's Option Writing category (percentile rankings are as of 12/31/16 and are based on total return).

Michael P. Hennen, head of investment management for Hatteras Funds, added, “We believe this strategy can help Financial Advisors and their clients experience a more predictable return profile within their equity allocations. With the strong performance of equities in 2016, and over the last 8 years, a greater number of investors may seek to allocate to strategies that moderate volatility and potentially hedge against stock market corrections. We believe the Disciplined Opportunity Fund can help realign the risk profile of portfolios that have become over-weighted to equities or help hesitant investors put cash back to work now.”

The Fund is currently available at Schwab, Fidelity, Pershing and TD Ameritrade. For more information on the Fund, please visit HatterasFunds.com or contact us at 866.388.6292.

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 solve specific portfolio needs.

The Hatteras Disciplined Opportunity 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 www.hatterasfunds.com. Read it carefully before investing.

Important Disclosures 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.

Morningstar Ranking/Number of Funds in Category displays the Fund’s actual rank within its Morningstar Category based on average annual total return and number of funds in that Category. The returns assume reinvestment of dividends and do not reflect any applicable sales charge. Absent expense limitation, total return would be less.

Morningstar Percentile Rankings are the Fund's total return rank relative to all the funds in the same Morningstar category, where 1 is the highest percentile rank and 100 is the lowest percentile rank.

Key Risk Factors:

Investors should consider the following risk factors and special considerations associated with investing in the Hatteras Disciplined Opportunity Fund. 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. The Fund may invest in options. Options transactions may be effected on securities exchanges or in the OTC market. When options are purchased over-the-counter, the Fund bears the risk that the counter-party that wrote the option will be unable or unwilling to perform its obligations under the option contract. The Fund may engage in Short Sale/Put and Call Options which entail substantial risks. Also, options transactions involve special risks that may make it difficult or impossible to unwind a position when the Fund desires. Short-sale strategies are riskier than long investment strategies. The Fund could incur potentially unlimited losses. If the value of a security sold short increases, the Fund will incur a loss because it will have to purchase the security at a higher price. As part of the Fund’s principal investment strategies, the Fund may invest in other investment companies, such as exchange-traded funds (“ETFs”) to gain long exposure to the companies in the S&P 500 Index. The Fund is a recently-formed entity with limited or no operating history. The Fund’s success will depend on the management of the Sub-Adviser and on the skill and acumen of the Sub-Advisor’s personnel. The Fund is considered non-diversified and may invest in the securities of fewer issuers than diversified funds at any one time; as a result, the gains and losses of a single security may have a greater impact on the Fund’s share price. 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 Funds may not be suitable for all investors.

The above risks do not purport to be a full or complete list of the risks associated with an investment in the Fund. Please see the prospectus for the Fund’s risks, expenses and disclosures;

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.

DOF 1-2017-10

Contacts

Hatteras Funds
Jessica Sherburne, 919.846.2324

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Release Summary

Hatteras Funds 3 year anniversary of Disciplined Opportunity Fund which ranks in the top quartile vs. its peer group

Hatteras Funds