The Measured Risk Strategy Fund
Measured Risk Strategy Fund (MRPAX/MRPIX) invests tactically in options linked inversely to stock market volatility while the majority of the fund remains invested in short-term fixed income securities or cash.
The Fund seeks total return from capital appreciation and, to a lesser extent, income.
The Fund invests up to 20% in options on volatility-linked ETPs to capitalize on flat or declining levels of volatility, while the balance (80% or more) is invested in short-term fixed income (i.e. Treasury Bills) seeking to limit maximum overnight drawdown risk versus volatility ETPs.
Tactical exposure to short volatility, via options, attempts to limit the risk of severe single-day price declines in rising periods of volatility. The majority of the risk is in options exposure which can suffer total loss in a short period of time.