Measured Risk Portfolios Introduces Managed Short Volatility Mutual Fund
SAN DIEGO, CA, January 10, 2017 (Newswire.com) - Measured Risk Portfolios, Inc. today announced the launch of a new mutual fund, the Measured Risk Strategy Fund (Tickers: MRPAX and MRPIX). The fund offers a managed exposure to a volatility selling strategy – a strategy that ultimately takes a short position in the CBOE VIX futures market.
“While there are many exchange traded products that offer short volatility exposure, their high annual volatility makes them unsuitable to simply buy and hold,” said Larry Kriesmer, President of Measured Risk Portfolios. “This mutual fund seeks to capture the potential upside of a short volatility strategy while actively working to minimize the risks associated with the strategy.”
Measured Risk Portfolio has hired Black Peak Capital, LLC, an investment advisor focused on systematic volatility strategies, as a sub‐advisor to the fund. “By putting together MRP’s experience with hedging risk and our proprietary algorithms, we attempt to offer a better risk-adjusted approach to selling volatility than currently exists for retail and institutional investors alike,” said Stephen Aniston, President of Black Peak Capital.
While there are many exchange traded products that offer short volatility exposure, their high annual volatility makes them unsuitable to simply buy and hold. This mutual fund seeks to capture the potential upside of a short volatility strategy while actively working to minimize the risks associated with the strategy
Important information about the fund, including the prospectus, can be found at www.mrp.fund.
About Measured Risk Portfolios
Measured Risk Portfolios, LLC is an investment advisor headquartered in San Diego, California. As of December 31, 2016, Measured Risk Portfolios had over $120 million in assets under management in three main strategies – Measured Risk Portfolio, Consumer Linked Income Portfolio and a Managed Volatility Portfolio. All strategies have been offered exclusively through separately managed accounts. It has offered investors a managed volatility strategy since October of 2013. More at www.mrpfolios.com.
About Black Peak Capital
Black Peak Capital, LLC is an investment advisor focused on systematic volatility strategies. Black Peak Capital is affiliated with the VIXCONTANGO.COM website, a leading provider of investment analysis of the CBOE VIX futures market and related exchange traded products. The website is used by wealthy private investors and professional investment advisors who together have dedicated over $150 million to volatility strategies. More at www.vixcontango.com.
Investors should carefully consider the investment objective, risks, charges and expenses of the Measured Risk Strategy Fund. Mutual funds involve risk, including possible loss of principal. There is no guarantee the Fund will meet its objective. This and other information is contained in the prospectus and should be read carefully before investing. For a prospectus please call Measured Risk Portfolios at (855) 907‐3407. The Funds are distributed by Northern Lights Distributors, LLC, member FINRA / SIPC. Northern Lights Distributors, LLC is not affiliated with Measured Risk Portfolios, Inc., the Adviser, or Black Peak Capital, LLC, the subadviser. Measured Risk Portfolios, Inc. and Black Peak Capital, LLC are not affiliated entities.
The Fund employs various strategies to achieve the objective of capital appreciation and income. The primary tool to achieve this objective is the use of options. Options involve risk and are not suitable for all investors. Purchased put or call options may expire worthless and may not deliver the expected return due to time value decay. Written call and put options may limit the Fund’s participation in gains and may amplify losses in market declines. The Fund’s losses are potentially large in a written put or call transaction. If un‐hedged, written calls expose the Fund to potentially unlimited losses.
Volatility Exchange Traded Products (ETPs) may have significantly greater daily movements that that of the broad US equity markets. Investors cannot directly invest in an index and unmanaged index returns do not reflect any fees, expenses or sales charges. The Fund may invest or buy or sell options on volatility related ETPs, such as: (holdings are subject to change and should not be considered investment advice)
SVXY: ProShares Short VIX Short‐Term Futures ETF seeks daily investment results, before fees and expenses, that correspond to the inverse (‐1x) of the daily performance of the S&P 500 VIX Short‐Term Futures Index.
XIV: The VelocityShares Daily Inverse VIX Short Term ETN provides ‐1x leveraged exposure to an index comprising first‐ and second‐month VIX future positions with a weighted average maturity of 1 month.
VXX: The iPath S&P 500 VIX Short‐Term Futures ETN tracks an index with exposure to futures contracts on the CBOE Volatility Index with average 1‐month maturity.
ETPs are subject to investment advisory and other expenses, which will be indirectly paid by the Fund. As a result, the cost of investing in the Fund will be higher than the cost of investing directly in ETFs and may be higher than other mutual funds that invest directly in stocks. ETFs are subject to specific risks, depending on the nature of the Fund.
The use of leverage, such as that embedded in options, could magnify the Fund’s gains or losses. Written option positions expose the Fund to potential losses many times the option premium received.
The adviser’s use of trading algorithms and judgments about the attractiveness, value and potential appreciation of particular ETPs and options in which the Fund invests or sells may prove to be incorrect and may not produce the desired results. 4012‐NLD‐1/9/2017
Measured Risk Portfolios, LLC
Black Peak Capital, LLC
Source: Measured Risk Portfolios