Zacks Market Neutral Fund

Our strategy

The Zacks Market Neutral Fund seeks to remove the risk involved in the equity market by simultaneously investing in a long portfolio (stocks anticipated to appreciate in price) and a short portfolio (stocks anticipated to decrease in price).

By investing in both long and short positions the fund's investors may benefit from both our positive and our negative stock views. We follow a disciplined quantitative process to identify potential holdings, and then perform an extensive fundamental analysis for each position and employ strict risk controls.

The primary objective is to generate positive returns in both rising and falling equity markets, and may be appropriate for investors seeking a fund with a lower risk profile than most equity asset classes.

Mutual fund investing involves risk, including the potential loss of principal. There can be no assurance that the Fund will achieve their investment objectives. There is a risk that the value of the Fund's' stocks may fall due to general market and economic conditions and perceptions regarding the industries and or companies in which the Fund is invested.

The Fund is new and has a limited history of operations.

There are risks involved in selling stocks short including the possibility that the Market Neutral Fund may not be able to close out a short position at a particular time or at a particular price. The Fund's loss on a short sale is limited only by the maximum attainable price of the security (which could belimitless) less the price the Fund paid for the security at the time it was borrowed.

The Market Neutral Fund may invest in stocks of companies of any size. Small- or mid-cap stocks may exhibit more erratic market and trading movements than larger stocks or the overall market. Small- and mid-cap companies can also be less liquid, making it more difficult for the managers to sell positions at the time they may wish.