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Equity-Focused & Asset Allocation Funds

While investment universes of the equity focused and asset allocation funds differ, they share similar features of the investment process:

  • Stock Selection: Invest in a diversified portfolio of equities that the Advisor views as demonstrating some combination of favorable valuation, market action and financial stability.
  • Variable Market Exposure: Align the Funds’ exposure to general market fluctuations with the expected market return/risk profile estimated by the Advisor, classified based on prevailing market conditions. The goal is not to forecast specific market outcomes. Rather, the goal is to increase exposure to general market fluctuations in conditions that have historically been associated with favorable estimated market return/risk profiles, on average, and to reduce (“hedge”) exposure to general market fluctuations in conditions that have historically been associated with unfavorable market outcomes, on average.

FundTickerPrimary Investment UniversePotential Market ExposureLong Term Benchmark1
Hussman Strategic GrowthHSGFXEquities that trade on the major domestic exchanges, with a combined focus on valuation and market action.Fully-hedged (typically using long put/short call index option combinations, which may include the use of differing exercise prices), with the ability to use index call options to leverage the amount of stock controlled by the Fund to as much as 150% of the value of the Fund’s net assets2S&P 500 Index
Hussman Strategic AllocationHSAFXEquities trading on major U.S. exchanges, U.S. Treasury securities, money market instruments. The Fund may also purchase corporate debt of U.S. issuers rated at least A- (S&P), A3 (Moody's), or equivalent.Unhedged exposure of no less than 5% in both equities and U.S. Treasury bonds, ranging up to 95% invested in either asset class.Bloomberg US EQ:FI 60:40 Index

Bond-Focused Fund

The exposure of Hussman Strategic Total Return Fund to each asset class within the Fund’s investment universe is generally aligned with the Advisor’s estimate of the expected return/risk profile for that asset class, classified based on prevailing market conditions.

FundTickerPrimary Investment UniverseLong Term Benchmark1
Hussman Strategic Total ReturnHSTRXU.S. Treasury Securities and Investment Grade Fixed Income (70-100%)
Fixed Income Alternatives (0-30%):
Precious metals shares
Utility & energy shares
Convertible bonds
International fixed income and currencies
Real estate investment trusts
Bloomberg U.S. Aggregate Bond Index

1The Funds make no effort to track or replicate the exposures of the benchmarks, particularly over limited segments of a complete market cycle. The benchmarks serve as long-term performance gauges. Effective February 28, 2023, Strategic Allocation Fund changed its primary benchmark to the Bloomberg U.S. EQ:FI 60:40 Index, a broad-based securities market index. The Fund will also continue to compare its performance to the Benchmark Fixed Allocation Composite Index (60% S&P 500, 30% Treasury bonds, 10% Treasury bills) as a secondary benchmark.

2When the Advisor’s estimate of the expected market return/risk profile is strongly unfavorable, the Fund (HSGFX) has the ability to fully hedge its portfolio, potentially raising the strike prices of its index put options to a higher strike than those of short call options that may be used to hedge the portfolio. The Fund may experience a loss even when the entire value of its stock portfolio is hedged if the returns of the stocks held by the Fund do not exceed the returns of the securities and financial instruments used to hedge, or if the exercise prices of the Fund’s call and put options differ, so that the combined loss on these options during a market advance exceeds the gain on the underlying stock index. When the estimated market return/risk profile is strongly favorable, the Fund has the ability to leverage the amount of stock it controls to as much as 150% of the value of the Fund’s net assets, typically by investing a limited percentage of assets in long call options.

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