AlphaCentric Premium Opportunity Fund Class C · NASDAQ:HMXCX
AlphaCentric Premium Opportunity Fund Class C — Investor Presentation (September 2022)
19 slides from AlphaCentric Premium Opportunity Fund Class C's investor presentation, Sep 30, 2022
Slide 1: AlphaCentric Premium Opportunity Fund
AlphaCentric Premium Opportunity Fund Downside equity risk management coupled with volatility management HMXIX More consistent positive monthly returns than stocks and bonds HMXAX Low correlation to equity and fixed income markets HMXCX ©2022 AlphaCentric Advisors | ACPB HMX 09302022 | 7166-NL
Slide 2: Alternative Investments: Many Have Disappointed
Alternative Investments: Many Have Disappointed Asset Class: Representative 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Index Shown here are the HMXIX S&P 500 REIT HMXIX MLP S&P 500 Market Neutral S&P 500 HMXIX REIT AlphaCentric Premium ten most recent full 22.76% 32.39% 30.38% 10.00% 18.31% 2
Slide 3: Performance in Up and Down Markets with Less Risk & Less Correlation
Performance in Up and Down Markets with Less Risk & Less Correlation The Best of Times, The Worst of Times Correlation Examples S&P 500 TR Index HMXIX HMXIX AGG SPX HMXIX Correlation 40% 10% 100% 12.8% S&P 500's 10.9% 10.9% S&P 500 TR Index When S&P is Up 10 Best Months Average Return 1.3% 0.2% 3.1%
Slide 4: Expected Volatility vs Actual Volatility: Why Active Management Matters
Expected Volatility vs Actual Volatility: Why Active Management Matters Expected Volatility vs Actual Volatility December 31, 2011 - September 30, 2022 30 20 Expected Expected > Actual = Volatility is 10 usually higher 0 than Actual Volatility. Actual > Expected = -10 An active -20 "Volmaggedon" app
Slide 5: Markets Change...Trades Change
Markets Change...Trades Change Market Environments Option-based strategies tend to fall into one of four 1 2 quadrants. ⬆ Up Market ⬇ Down Market ⬆ Rising Volatility ⬆ Rising Volatility We rotate among them based on market ~5% OF THE TIME ~25% of the time environment. Example: Long Market & Example:
Slide 6: Fund Performance, Risk Statistics, Consistency of Returns
Fund Performance, Risk Statistics, Consistency of Returns Fund Performance as of 9/30/22 (Annualized if greater than 1 year) Distribution of Monthly Returns as of 9/30/22 Inception Date: 9/1/11 QTD YTD 1 YR 3 YR 5 YR 10 YR Inception 60 HMXIX (Inception 9/1/11) -2.12 -12.92 -10.18 7.77 6.00 7.28 8.81
Slide 7: Fund Summary and Manager Bio
Fund Summary and Manager Bio Fund Objective The Fund’s objective is to achieve long-term capital appreciation. Portfolio Manager Fast Facts Russell Kellites Asymmetric risk and return: up capture/down capture to the S&P 500 Portfolio Manager of the Fund since High alpha, low beta inception L
Slide 8: How to Use this Fund
How to Use this Fund HMXIX Correlations Since Inception as of 9/30/22 0.35 0.31 0.30 0.28 0.25 0.21 0.20 0.17 0.15 0.14 0.10 0.05 Commodities 0.00 Corporate Real Em Equities US Equity World 0.05 Bonds Estate Equities 0.10 -0.08 0.15 8 | ALPHACENTRIC PREMIUM OPPORTUNITY FUND | HMXIX HMXAX HMXCX
Slide 9: Risk Disclosures
Risk Disclosures The Performance shown before September 30, 2016 is for the Fund’s Predecessor Fund (Theta Funds, L.P.) The Fund’s management practices, investment goals, policies, objectives, guidelines and restrictions are, in all material respects, equivalent to the predecessor limited partnershi
Slide 10: Risk/Profit Rebalance
Risk/Profit Rebalance Definitions As illustrated below, post- Strike Price: The price at which a holder of an option may buy (calls) or sell (puts) a stock. Volmageddon, the Fund exhibits Expiry/Expiration: The last date that an option holder may exercise his right to buy (calls) or sell (puts)
Slide 11: Key Definitions
Key Definitions Investment Terms Used Alpha: A measure of risk-adjusted return. Beta: A statistic that measures the volatility of the fund, as compared to that of the overall market. Correlation: A statistical measure of how two securities move in relation to each other as measured by the correlatio
Slide 12: Key Definitions
Key Definitions Index Definitions (Indices assume reinvestment of all dividends and distributions. You cannot invest directly in an index.) Morningstar Managed Futures: Tracks investment instruments that primarily trade liquid global futures, options, swaps, and foreign exchange contracts, both list
Slide 13: Thank you for your interest in the Fund.
Thank you for your interest in the Fund. Contact Us: +1 855 674 FUND HMXIX HMXAX www.alphacentricfunds.com HMXCX info@alphacentricfunds.com
Slide 14: Appendix
Appendix HMXIX HMXAX HMXCX
Slide 15: Portfolio Lifecycle
Portfolio Lifecycle Mandate Low-correlation Low Volatility Total Return Scenario Analysis Volatility and Market Data Filtered through Risk Risk Management Assessment Matrix Delta Limits, Shock Risk, Tail Risks, Liquidity Trade Construction Probabilistic and Deterministic Trade Execution Optimiza
Slide 16: The Good, the Bad and the VIX
The Good, the Bad and the VIX Futures Curve in "Contango" Futures Curve in "Backwardation" Sellers and buyers agree 3rd 4th 5th Price converges to Month VIX Index on when the seller will VIX Index level 2nd Month Month Price converges to Month VIX Index level deliver money or an 1st Month asset (i.e
Slide 17: Feb-Mar 2020 Trade Evolution
Feb-Mar 2020 Trade Evolution Feb 24, 2020 Jan 2, 2020 Regime: Significant Inversion 120 Regime: Contango // Normal VIX Curve Trade: Long Vol (Short Market) Mar 16, 2020 Trade: Long Equity & Selling Premium Regime: Backwardation // Hyper-Vol Trade: Long Vol (Short Market) 110 Mar 26, 2020 Regime: Dec
Slide 18: How to Invest
How to Invest Four Reasons to Invest How to Invest We believe a positive Share Class Ticker CUSIP Minimum Investment Gross Expense Net Expense return of options can work in a variety of market Institutional HMXIX 62827M144 $2,500 2.44% 2.43% environments Class A HMXAX 62827M169 $2,500 3.19% 3.17%
Slide 19: Feb 2018 Coda
Feb 2018 Coda Outcome Late 2017 through Early 2018 Strong markets led to investor complacency and sparse (put) portfolio protection purchase. Because of our internal model Thin premiums led to increased aggressiveness by premium sellers including us. modifications and external, systemic Market
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