First Trust Hedged Strategies Fund · NASDAQ:HDGAX
First Trust Hedged Strategies Fund — Investor Presentation (October 2026)
18 slides from First Trust Hedged Strategies Fund's investor presentation, October 2026
Slide 1: HFLEX First Trust Hedged Strategies Fund
HFLEX First Trust Hedged Strategies Fund CLASS I SHARES 3 RD Q U A R T E R 2 0 2 6 FOR INSTITUTIONAL USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
Slide 2: First Trust Alternative Product Lineup
FIRST TRUST ALTERNATIVE PRODUCT LINEUP Any Client Accreditation Spectrum Qualifications Liquid Alternatives Registered Alternatives Private Asset Platform First Trust Merger Arbitrage Fund: First Trust Hedged Strategies Fund: HFLEX Private Equity VARBX First Trust Alternative Opportunities Fund: Fir
Slide 3: HFLEX Overview
HFLEX OVERVIEW Interval Fund of Hedge Funds Seeks to Outperform HFRX Index HFLEX is the first interval fund providing pure HFLEX seeks to outperform the HFRX Global hedge fund exposure. The vast majority of interval Hedge Fund Index with a lower volatility and lower funds allocate to private credit
Slide 4: What Differentiates HFLEX: 1st Interval Fund of Hedge Funds
WHAT DIFFERENTIATES HFLEX: 1 ST INTERVAL FUND OF HEDGE FUNDS Private Credit | 102 Funds – $87B Real Estate | 24 Funds – $15B • The interval fund universe currently is comprised of 152 funds, encompassing 6 distinct broad categories with a combined total net assets under management (AUM) of $120.5 bi
Slide 5: HFLEX Inception Timeline
HFLEX INCEPTION TIMELINE HFLEX was constructed and managed by a team with decades of hedge fund industry experience, dating back to the 1980s. 1980 2012-2013 • Founding partners began 2007 • The partners sold Iron • Inception of Vivaldi Capital 2021 their careers trading and Management (VCM), specia
Slide 6: Hedge Fund Universe: # of Managers
HEDGE FUND UNIVERSE: # OF MANAGERS EVENT MULTI- LONG / ARBITRAGE / CREDIT DRIVEN STRATEGY SHORT EQUITY RELATIVE VALUE UNIVERSE* 1250+ 4700+ 4500+ 3250+ 1750+ FT AIR RESEARCH DATABASE* 275 1250 1800 1000 500 FT AIR DUE DILIGENCE 30 40 50 50 30 HFLEX 2 4 5 3 2 *Source: Preqin, FTCM database. As of 9/3
Slide 7: Breaking Down the Hedge Fund Universe
BREAKING DOWN THE HEDGE FUND UNIVERSE A Multi-Sector Approach to Hedged Strategies: Arbitrage/Relative Value Credit • Dedicated to profit from mispricing opportunities through a • Focused on research-intensive credit opportunities invested across all capital structures derived from a fundamental, bo
Slide 8: Portfolio (as of 9/30/2026)
HFLEX PORTFOLIO (AS OF 9/30/2026) The First Trust Hedged Strategies Fund (HFLEX) is a concentrated, multi-manager interval fund comprised of a selected group of hedge funds sourced, underwritten and actively monitored by our +20-member alternative investment research team. Strategy Allocations1 Mana
Slide 9: Manager & Strategy Net Attribution
MANAGER & STRATEGY NET ATTRIBUTION Managers Q3 2026 YTD 2026 YTD Net Attribution breakdown by Strategy1 RiverNorth -0.09% -0.10% Old Orchard -0.08% 0.25% Arbitrage/Relative Value Linden -0.34% 0.65% 0.15% DSC Meridian -0.11% 0.25% Acer Tree -0.06% 0.00% Multi-Strategy Sachem Head -0.96% 1.37% 0.80%
Slide 10: Offers Unique Hedge Fund Access
HFLEX OFFERS UNIQUE HEDGE FUND ACCESS Manager Asset Class Min. Investment Tax Reporting RiverNorth* Arbitrage / Relative Value $ 5,000,000 K-1 Old Orchard Arbitrage / Relative Value $ 1,000,000 K-1 Linden Advisors Credit $ 5,000,000 K-1 DSC Meridian Credit $1,000,000 K-1 Acer Tree Credit $100,000 K-
Slide 11: Hedge Funds by Strategy
HEDGE FUNDS BY STRATEGY Average Annualized Average Annualized Average Average Correlation to Strategy Funds Strategy Total Return Volatility Return/Vol S&P 500 Index Arbitrage/Relative Arbitrage/Relative RiverNorth, Old Orchard 9.0% 5.9% 1.5 0.41 Value Value Credit Linden, Acer Tree, DSC Meridian Cr
Slide 12: Hedge Funds Summary Table
HEDGE FUNDS SUMMARY TABLE Correlation to Strategy/Fund Annualized Total Return Annualized Volatility Return/Vol SPX Index Attribution analysis is for illustrative purposes only and does not represent the Fund’s total return. Portfolio Arbitrage/Relative Value holdings are subject to change and shoul
Slide 13: Up/Down Capture
HFLEX UP/DOWN CAPTURE Since converting to an interval fund on 7/1/2023, HFLEX has exhibited a notable market capture ratio of 1.2. HFLEX has only lost 17% as much as the equity market in months where the S&P 500 Index declined and gained 30% of the benchmark’s gains in months where the S&P 500 Index
Slide 14: Historical Performance
HFLEX HISTORICAL PERFORMANCE 1 Risk & Return Statistics 7/1/2017 – 9/30/2026 HFLEX HFRX Global Hedge Fund Index (HFRX) Net Annualized Return 6.85% 3.21% Standard Deviation 5.50% 4.34% Return/Risk 1.25 0.74 Beta to HFRX 1.10 1.00 Net Historical Performance1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Slide 15: Performance (%) as of 9/30/2026
HFLEX PERFORMANCE (%) AS OF 9/30/2026 1 Net Asset Value Since Fund Total Expense Net Expense 3 Month YTD 1 Year 3 Year 5 Year 10 Year (NAV)* Inception Ratio Ratio2 HFLEX – Class I -1.96 4.09 7.65 9.88 6.77 N/A 6.85 9.95 9.30 Shares Index Performance** HFRX Global Hedge -0.82 3.93 5.40 6.03 2.94 N/A
Slide 16: Fund Terms
FUND TERMS Potential Benefits of the Interval Fund Structure: HFLEX Purchase Click To Buy Liquidity1 Quarterly Minimum Investment $1,000 Paperwork None Accreditation Requirements None Capital Calls None Tax Treatment 1099 Assets Under Management2 $65.3 Million 1The liquidity of interval funds are su
Slide 17: Risk Considerations
HFLEX RISK CONSIDERATIONS You should consider a fund’s investment objectives, risks, and charges and expenses carefully before investing. Contact First Trust Capital Management at 1-800-988-5196 or visit www.firstrustcapital.com to obtain a prospectus which contains this and other information about
Slide 18: Contact Us
Contact Us 1-800-988-5196 | www.firsttrustcapital.com You should consider a fund’s investment objectives, risks, and charges and expenses carefully before investing. Contact First Trust Capital Management at 1-800-988-5196 or visit www.firsttrustcapital.com to obtain a prospectus which contains this
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