Why The Flexible Fund?
When we set out to create a new type of fund we wanted to bring together the best of both worlds ~ the liquidity and transparency of a mutual fund with the sophisticated and multi-faceted investment approach typically found in hedge funds. That is why we created The Flexible Fund.
For a number of years sophisticated and wealthy investors have utilized hedge funds to try to achieve superior gains in the market. The Flexible Fund strives to take advantage of these very same investment techniques1. However, The Flexible Fund is a regulated mutual fund that offers daily liquidity and pricing, transparency and does not require investors to be at a minimum net income or net worth level the way typical alternative investments do.
Our Investment Approach
On any particular day the experienced management team at Thesis Fund Management will have a full array of investment tools with which to approach the markets. Many mutual funds simply buy securities they believe will increase in value. The Flexible Fund does that and a whole lot more. The Flexible Fund shorts securities that may decrease in value, and the fund can purchase bonds, derivatives, commodities or other products, both domestically and internationally, that could potentially provide additional returns.
Developing Investment Ideas
At Thesis Fund Management we take a creative and independent approach to developing worthwhile investment ideas. Much in the same way our logo brings together two circles to create a third image, we always look at opportunities from multiple angles in hopes of identifying something special. While we can capitalize on any opportunity at any time, we know a focused approach is often the best approach. That is why we dive deep into specific themes, uncover promising opportunities, and identify areas that we believe may rise or fall. Once we have an investment thesis, our flexibility gives us a full array of investment tools to try to capitalize on activity in the markets.
Risk Management and Capital Preservation
The flexibility of our investment approach not only allows the fund to capitalize on numerous market opportunities that arise but it also allows for a variety of tools to manage risk and preserve investor capital.
According to The New York Times ("Hedge Fund Strategies at Smaller Prices," January 9, 2010), funds like The Flexible Fund that can buy long and sell short generally offer a more stable pattern of returns.
“These types of funds are considered most useful in concert with other investments. Owning one can reduce the volatility of a broad portfolio without a corresponding reduction in returns,” said the Times. “Returns are often uncorrelated with conventional market benchmarks,” according to the Times, “and that can help reduce portfolio volatility and, therefore, risk.”
Keeping You Informed
We believe investors in The Flexible Fund deserve to know how their money is being managed. In addition to providing a daily Net Asset Value (NAV) and a quarterly update letter, which are required of all mutual funds, we will regularly provide investors with a “portfolio snapshot” that will discuss our performance, exposure, concentration of holdings, strategy allocations, correlations, and our liquidity.
1 Risk factors should be considered and reviewed before purchasing a mutual fund. There is no assurance the Fund will achieve its investment objective.
Derivatives involve risks of improper valuation and ambiguous documentation. Changes in the value of the derivative may not correlate perfectly with the underlying security, are speculative and may increase the Fund's losses or reduce opportunities for gain.
As with any investment there are risks associated with The Flexible Fund. Please take the time to read through the prospectus before investing. Please pay close attention to the fund’s investment objective, risks, charges and expenses.
The Thesis Flexible Fund is distributed by IMST Distributors, LLC.
Additionally, Short Sales are speculative transactions and involve special risks, including a reliance on the portfolio managers’ ability to accurately anticipate the future value of a security. The Fund’s losses are potentially unlimited in a short sale transaction.