Investor Presentation
4th Quarter 2013

HFXAX | HFXCX | HFXIX

Catalyst Hedged Futures Strategy Fund

www.CatalystMF.com
A...
Executive Summary

 Overview: The Catalyst Hedged Futures Strategy Fund (HFXAX) seeks to
provide consistent returns with ...
Table of Contents







Background
Investment Strategy
Performance
Key Reasons to Invest
Disclosures

For Registered...
Background

 Inception: December, 2005 (Predecessor Private Fund)
 Management: managed by Edward Walczak since inception...
Investment Strategy

 The Fund employs an absolute return equity strategy that invests long and
short in options on S&P 5...
Investment Strategy

The fund seeks to achieve its investment objectives through:

 Premium Collection - seeks to profit ...
Investment Strategy

 Risk Management - Every position is initiated on a hedged basis with stop
loss trigger points to li...
Standard Performance as of December 31, 2013
Growth of $10,000 for Catalyst Hedged Futures Strategy Fund (HFXAX) vs. S&P 5...
Modern Portfolio Theory Statistics as of December 31, 2013

Catalyst Hedged Futures
Strategy Fund (HFXAX)

S&P 500 TR Inde...
Key Reasons to Invest

The Catalyst Hedged Futures Fund seeks to provide investors:

 Consistent returns from investment ...
Disclosures
Alpha: A measure of the difference between a fund's actual returns and its expected performance, given its lev...
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HFXAX - Hedged Futures - Investor Presentation 2013 q4

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HFXAX - Hedged Futures - Investor Presentation 2013 q4

  1. 1. Investor Presentation 4th Quarter 2013 HFXAX | HFXCX | HFXIX Catalyst Hedged Futures Strategy Fund www.CatalystMF.com Advisor Services: 631-629-4908
  2. 2. Executive Summary  Overview: The Catalyst Hedged Futures Strategy Fund (HFXAX) seeks to provide consistent returns with relatively low volatility regardless of market direction by employing an absolute return equity strategy that invests long and short in options on S&P 500 Index Futures. The strategy has proven very effective in achieving its investment objectives since its inception in December 2005.  Strong Performance: The fund has achieved an 18.10% annualized return* since inception compared to 7.02% for the S&P 500. 100% 50% 0% -50% HFXAX S&P 500 2006 53% 16% 2007 4% 5% 2008 50% -37% 2009 12% 26% 2010 10% 15% 2011 16% 2% 2012 11% 16% 2013 -3% 32% * As of December 31, 2013. See slide 8 for standard performance information and slide 11 for disclosures. The performance data quoted here represents past performance. Current performance may be lower or higher. For Registered Broker Dealer Use Only 2
  3. 3. Table of Contents      Background Investment Strategy Performance Key Reasons to Invest Disclosures For Registered Broker Dealer Use Only 3
  4. 4. Background  Inception: December, 2005 (Predecessor Private Fund)  Management: managed by Edward Walczak since inception – Founder of Harbor Financial LLC, a Commodity Trading Advisor registered with the National Futures Association and Portfolio Manager of Catalyst Capital Advisors LLC – B.A. in Physics and Economics from Middlebury College – MBA from the Harvard Graduate School of Business  Category: Managed Futures  Optimized for Alpha*: – Alpha: 17.66 and Beta: -0.24 – Low correlation to the Index: R-squared of 0.06 * Benchmarked against the S&P500 Index since inception as of December 31, 2013. For Registered Broker Dealer Use Only 4
  5. 5. Investment Strategy  The Fund employs an absolute return equity strategy that invests long and short in options on S&P 500 Index Futures with the objective of providing consistent returns with relatively low volatility regardless of market direction. The strategy provides good diversification as it typically has no correlation with equities or other asset classes.  From a portfolio standpoint, the fund serves as a very effective equity allocation that seeks to provide downside protection and reduce volatility, especially for large cap portfolios, while making a significant contribution to the overall portfolio return. We believe the fund’s risk/reward profile compares very favorably to the top-performing long/short and market neutral equity funds.  A potential attribute of the strategy that distinguishes it from other hedging and diversification strategies is that it’s designed to increase the potential returns as market volatility increases. There is no guarantee that any investment strategy will achieve its objectives, generate profits or avoid losses. For Registered Broker Dealer Use Only 5
  6. 6. Investment Strategy The fund seeks to achieve its investment objectives through:  Premium Collection - seeks to profit from the time decay intrinsic to options and is the foundation of the investment strategy. This strategy is well-suited to flat markets and typically accounts for 30 to 40% of portfolio return.  Volatility Trading - seeks to capitalize on changes in perceived volatility in the market, which is the key determinant of option pricing. This strategy is the primary source of return in downward trending markets.  Trend Following - employs options positions that aim to profit from steadily upward trending markets. Although the Fund will strive to meets its investment objective, there is no assurance that it will do so. For Registered Broker Dealer Use Only 6
  7. 7. Investment Strategy  Risk Management - Every position is initiated on a hedged basis with stop loss trigger points to limit drawdowns. Robust money management protocols are utilized for: • Optimized position sizing • Trade entry scaling • Diversification of time and price exposure • Dynamic hedging of option structures • Limiting overall portfolio risk  No Leverage - No borrowing is utilized to increase the size of the fund’s portfolio. The number and size of positions are set at a level of the fund’s capital consistent with the fund’s objectives of limiting volatility and drawdowns.  Liquidity - The S&P 500 Futures market is the second most liquid after the U.S. Treasury market.  Holding Period - Positions are typically held for 60 to 90 days. There is no guarantee that any investment strategy will achieve its objectives, generate profits or avoid losses. For Registered Broker Dealer Use Only 7
  8. 8. Standard Performance as of December 31, 2013 Growth of $10,000 for Catalyst Hedged Futures Strategy Fund (HFXAX) vs. S&P 500 TR $50,000 $40,000 $30,000 $20,000 $10,000 $0 2005 2006 2007 2008 HFXAX 2009 2010 2011 2012 2013 S&P 500 TR 1 Year 3 Years 5 Years Since Inception* Class A without Sales Charge (HFXAX) -3.33% 7.66% 9.10% 18.10% Class A with Sales Charge -8.86% 5.54% 7.81% 17.25% S&P 500 TR Index 32.39% 16.18% 17.94% 7.02% Class C N/A N/A N/A -4.50% Class I N/A N/A N/A -4.30% S&P 500 TR Index N/A N/A N/A 13.98% *Inception: Class A: 12/15/2005; Class C & I: 8/30/2013. There is no assurance that the Fund will achieve its investment objective. The Fund’s maximum sales charge for Class “A” shares is 5.75%. Investments in mutual funds involve risks. Performance is historic and does not guarantee future results. Investment return and principal value will fluctuate with changing market conditions so that when redeemed, shares may be worth more or less than their original cost. The Fund’s total annual operating expenses are estimated to be 2.23%, 2.98% and 1.98% for Class A, C, and I shares respectively. To request most recent performance or obtain a prospectus, please call 1-866-447-4228 or go to www.CatalystMF.com. For Registered Broker Dealer Use Only 8
  9. 9. Modern Portfolio Theory Statistics as of December 31, 2013 Catalyst Hedged Futures Strategy Fund (HFXAX) S&P 500 TR Index Alpha (vs. benchmark) 8.81% - Beta (vs. benchmark) -0.20 - R-Squared (vs. benchmark) 0.09 - Annualized Return 7.66% 16.18% Standard Deviation 8.06% 12.10% Alpha (vs. benchmark) 10.47% - Beta (vs. benchmark) -0.19 - R-Squared (vs. benchmark) 0.14 - Annualized Return 9.10% 17.94% Standard Deviation 8.15% 15.81% Key Comparisons 3-year MPT Statistics* 5-year MPT Statistics* * Assumes risk free rate of 1.71% The performance data quoted here represents past performance. Current performance may be lower or higher. For Registered Broker Dealer Use Only 9
  10. 10. Key Reasons to Invest The Catalyst Hedged Futures Fund seeks to provide investors:  Consistent returns from investment in combinations of options on index futures that are structured to profit across a broad range of market environments  Downside protection for long only equity allocations, especially large cap, as the strategy typically has no correlation to equity indexes and the portfolio always includes both long and short options positions  Reduced volatility achieved through hedging all positions at the outset with ongoing adjustment based on well-defined and proven risk parameters There is no guarantee that any investment strategy will achieve its objectives, generate profits or avoid losses. For Registered Broker Dealer Use Only 10
  11. 11. Disclosures Alpha: A measure of the difference between a fund's actual returns and its expected performance, given its level of risk as measured by beta. Beta: A measure of a fund's sensitivity to market movements. Correlation: A statistical measure of how two securities move in relation to each other. R-squared: A measure of the relationship between a portfolio and its benchmark.. S&P 500 Total Return Index is considered to be generally representative of the U.S. large capitalization stock market as a whole. Investors should carefully consider the investment objectives, risks, charges and expenses of the Catalyst Funds. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling 866-447-4228 or at www.CatalystMF.com. The prospectus should be read carefully before investing. The Catalyst Funds are distributed by Northern Lights Distributors, LLC, member FINRA. Catalyst Capital Advisors, LLC is not affiliated with Northern Lights Distributors, LLC. Mutual Funds involve risk including possible loss of principal. The Fund will invest a percentage of its assets in derivatives, such as futures and options contracts. The use of such derivatives and the resulting high portfolio turn-over may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities and commodities underlying those derivatives. The Fund may experience losses that exceed those experienced by funds that do not use futures contracts, options and hedging strategies. Changes in interest rates and the liquidity of certain investments could affect the Fund’s overall performance. The Fund is non-diversified and as a result, changes in the value of a single security may have significant effect on the Fund’s value. Other risks include U.S. Government securities risks and investments in fixed income securities. Typically, a rise in interest rates causes a decline in the value of fixed income securities or derivatives owned by the Fund. Furthermore, the use of leveraging can magnify the potential for gain or loss and amplify the effects of market volatility on the Fund’s share price. The Fund is subject to regulatory change and tax risks; changes to current rules could increase costs associated with an investment in the Fund. Performance shown before September 2013 is for the Fund's predecessor limited liability company (Harbor Assets, LLC). The prior performance is net of management fees and other expenses including the effect of the performance fee. The Fund has been managed in the same style and by the same portfolio manager since the predecessor limited liability company's inception on December 16, 2005. The Fund's investment goals, policies, guidelines and restrictions are, in all material respects, equivalent to the predecessor limited liability company's investment goals, policies, guidelines and restrictions. From its inception on December 16, 2005 through the date of this prospectus, the predecessor limited liability company was not subject to certain investment restrictions, diversification requirements and other restrictions of the 1940 Act of the Code, which if they had been applicable, might have adversely affected its performance. In addition, the predecessor limited partnership was not subject to sales loads that would have adversely affected performance. Performance of the predecessor fund is not an indicator of future results. 3012-NLD-12/6/2013 For Registered Broker Dealer Use Only 11

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