SNAPSHOT
The Fund seeks total return through a combination of dividend income and capital appreciation, with added emphasis on the protection of capital during unfavorable market conditions. It pursues this objective by investing primarily in common stocks and using hedging strategies to vary the exposure of the Fund to general market fluctuations.

INCEPTION DATE
February 2012

PORTFOLIO MANAGER
John P. Hussman, Ph.D.
& William Hester, CFA

Objective

Hussman Strategic Value Fund seeks to achieve total return through a combination of dividend income and capital appreciation, with added emphasis on the protection of capital during unfavorable market conditions.

Investment Strategy

The Fund’s portfolio will typically be fully invested in common stocks favored by Hussman Strategic Advisors, Inc., the Fund’s investment manager, except for modest cash balances arising in connection with the Fund’s day-to day operations. When market conditions are unfavorable in the view of the investment manager, the Fund may use options and index futures, or effect short sales of exchange traded funds (“ETFs”), to reduce the exposure of the Fund’s stock portfolio to the impact of general market fluctuations.

Security selection

In general, the stock selection approach of the investment manager focuses on securities demonstrating favorable valuations, coupled with consideration of additional measures of financial stability. The primary consideration used in assessing a stock’s valuation is the relationship between its current market price and the present value of expected future cash flows per share. Other valuation measures, such as the current dividend yield, and the ratio of the stock price to earnings and stock price to revenue, are also analyzed in relation to expected future growth of cash flows in an attempt to measure underlying value and the potential for long-term returns. It is expected that, under normal market conditions, dividend-paying stocks will generally represent at least 50% of the value of the Fund’s stock portfolio. Measures of financial stability include the ability to sustain current dividend payments from earned net income, adequacy of working capital, ability to service debt from earned cash flows, stability of profit margins, analysis of price behavior, and other factors.

Variable exposure to general market fluctuations

Historically, different combinations of valuation, market action and other factors have been accompanied by significantly different stock market performance in terms of return/risk. The investment manager expects to hold an unhedged, fully-invested position in common stocks in environments where the expected return from market risk is believed to be high, and may reduce or “hedge” the exposure of the Fund’s stock portfolio to the impact of general market fluctuations in environments where the expected return from market risk is believed to be unfavorable.

Specific strategies for reducing or “hedging” market exposure may include buying put options on individual stocks or stock indices, writing covered call options on stocks which the Fund owns or call options on stock indices, or establishing short futures positions or option combinations (such as simultaneously writing call options and purchasing put options) on one or more stock indices considered by the investment manager to be correlated with the Fund’s portfolio. In addition, the Fund may seek to hedge by effecting short sales of ETFs. The Fund may use these strategies to hedge up to 100% of the value of the stocks that it owns. However, 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.

Minimum investment

Regular accounts: $1,000
IRA and Gift to Minors accounts: $500