INVESTMENT PROCESS
Investment Process
Hull utilizes a three-step process to anticipate market direction and appropriately position the portfolio.
Step 1 – Anticipate Market Direction
HTUS utilizes economic, fundamental, technical, event-driven, seasonal, and sentiment factors, coupled with statistical
analysis to anticipate market direction.
Step 2 – Create Market Sentiment Score
HTUS creates a daily Market Sentiment Score which reflects the firm’s outlook on market direction.
Step 3 – Position Portfolio
HTUS positions its portfolio based on the Market Sentiment Score.
Market Sentiment Score
The Market Sentiment Score incorporates HTUS' analysis of market drivers to anticipate market direction and position
the portfolio appropriately. Each spot on the Market Sentiment Meter corresponds to a unique portfolio allocation.
The fund’s exposure to equities may range from 100% short to 200% long.These exposures seek to allow investors to
participate in bull markets while potentially avoiding and even benefiting from bear markets.
Market Sentiment Meter Current: 126
| Score | Allocation | Outlook | Equity Exposure | Intuition |
|---|---|---|---|---|
| 190 |
90% SPY
100% Long Futures 10% Cash | Extremely Bullish | 190% | - Expectations for very strong equity appreciation.
- Portfolio positioned to experience approximately twice the equity market return. - Profit from strong equity market performance. |
| 150 |
90% SPY
60% Long Futures 10% Cash | More Bullish | 150% | - Expectations for strong equity appreciation.
- Portfolio positioned to experience approximately 1.5 times the equity market return. - Profit from strong equity market performance. |
| 100 |
90% SPY
10% Long Futures 10% Cash | Bullish | 100% | - Expectations for average to strong equity appreciation.
- Portfolio positioned to experience equity market return. |
| 50 |
50% SPY
50% Cash | Mildly Bullish | 50% | - Expectations for below average equity appreciation.
- Portfolio positioned to experience partial equity market return. |
| 0 | 100% Cash | Neutral | 0% | - Expectations for flat equity market.
- Portfolio positioned to avoid negative downturn. |
| -50 |
50% Short Futures
100% Cash | Bearish | -50% | - Expectation for negative equity returns
- Portfolio positoned to avoid and profit from downturn - Profit from market downturn |
| -100 |
100% Short Futures
100% Cash | Extremely Bearish | -100% | - Expectations for negative equity returns.
- Portfolio positioned to avoid downturn and experience approximately one time the inverse return of the equity market. - Profit from market downturn. |
HTAA, LLC serves as the investment adviser. The Funds are distributed by Ultimus Fund Distributors, LLC (225 Pictoria Drive, Suite 450, Cincinnati, OH 45246) Check the background of Ultimus Fund Distributors, LLC on FINRA’s BrokerCheck.