Catalyst Hedged Futures Strategy Fund (Possible Long Term Hold)

Below is a chart illustrating both monthly and annual returns for our position in HFXAX. Study it carefully. Determine if you would be willing to hold this long term. From 2011 to 2015 it had only one down year and in that year it declined less that 3%. This is very low volatility fund that is very uncorrelated to the daily moves in the stock market. I think it is a very good choice for these volatile times. Return by Year: 2015    7.2% 2014    8.01% 2013  -2.86% 2012   10.39% 2011    15.64%  Catalyst Hedged Futures Strategy Fund HFXAX -  Monthly & Yearly Total Returns Monthly Returns 2015 December -0.12 November 0.55 October -0.63 September 0.46 August 1.1 July 0 June 0.28 May 1.12 April 0.75 March 0.38 February -0.38 January 4.11 2015 Total Return 7.62 2014 December 2.7 November -4.29 October -4.2 September 1.39 August -0.74 July 1.02 June 2.09 May -0.28 April 0.19 March 0.96 February 1.65 January 7.52 2014 Total Return 8.01 2013 December 0.74 November -2.56 October 0.93 September -3.4 August 2.46 July -2.3 June 2.67 May -7.33 April 2.04 March 1.28 February 1.8 January 0.81 2013 Total Return -2.86 2012 December 1.23 November 1.03 October 1.36 September 1.06 August 1.83 July -0.43 June -0.21 May 1.63 April -0.43 March 1.76 February 1.11 January 0.45 2012 Total Return 10.39 2011 December 0.11 November 1.36 October 1.62 September 2.49 August 4.19 July -1.34 June 1.11 May 1.88 April 2.57 March 4.29 February -4.73 January 2.09 2011 Total Return 15.64 *Today's results* On a day when the Dow Jones Industrial Average closed down nearly 400 points HFXAX managed to have a positive return for the day. Catalyst Hedged Futures Strategy Fund Class A HFXAX - Jan 15 +0.01 (+0.09%)

Our Largest Current GWM Portfolio Holding - HFXAX

Catalyst Hedged Futures Strategy Fund 

 (HFXAX)

Fund Objective:

Stephen L Gerritz, CFP

Investment Policy

The Fund seeks capital appreciation in all market conditions, with low volatility and low correlation to the US equity market. The Fund invests primarily in long and short call and put options on S&P 500 Index futures contracts and in cash and cash equivalents, including high-quality short-term fixed income securities.

This fund is doing it's intended job for our portfolios. I needed to have a position in client accounts to help reduce overall volatility and to provide an effective way to generate some return in a declining market. I highlighted it's performance in my latest newsletter. It actually has a history of performing better as the market become more volatile.

Here is the how it is rated by Lipper and how it performed this last week compared to the S&P 500:

Catalyst Hedged Futures Strategy Fund

HFXAX has earned Lipper's highest rating,  5.

While the S&P 500 declined -4.90% this first week of the year, HFXAX actually managed to gain a little, +0.09%.

I am able to purchase it with NO LOAD for FOLIO Institutional accounts only. I might add that it is now closed to the general public.  I am however able to still buy it for Folio clients.

For the benefit of those that do not receive my newsletters, here is the past performance chart that I included in my January 2016 newsletter:

Catalyst Hedged Futures Strategy Fund

HFXAX 2006 thru 2012

Outstanding performance during the 2008 - 2009 bear market.

The Utilities Sector (XLU) is Holding Up Well

Stephen L Gerritz, CFP

So far the US markets have had the worst weekly performance in a very long time.

Below is a line chart showing the performance of all the major S&P Sectors year to date.

The Utilities Sector (XLU) is the only S&P sector up for the year. The Consumer Staples Sector (XLP) comes in second place with only a slight loss. Everything else is suffering large declines.

XLU is the only Equity Sector ETF that GWM portfolios continue to hold. It is helping us weather the storm .

I did sell XLP today as it has begun to weaken.

S&P 500 Daily Relative Strength Chart

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