The foundation of this approach is a portfolio of carefully selected large-cap equities. The Hedged Equity Fund typically invests in approximately 40-50 equity securities that are diversified among market sectors. We sell covered call options against these underlying stocks seeking to generate additional income and lower overall portfolio volatility.
In addition to writing covered calls, we may implement other risk-reducing measures such as purchasing protective puts, put-spread, and actively raising cash levels as we seek to outperform in down markets. This may reduce upside potential in strong markets, portfolio volatility can be reduced.
Investment Objective: The Connors Hedged Equity Fund seeks to achieve capital appreciation and secondarily income generation, with lower volatility than U.S. equity markets.
The Connors Hedged Equity Fund is distributed by Ultimus Fund Distributors, LLC. (Member FINRA) Connors Investor Services and Ultimus Fund Distributors, LLC are separate and unaffiliated.