SOURCE: Bishop Asset Management

Bishop Asset Management

February 08, 2011 09:15 ET

Bishop Asset Management Launches the Bishop Volatility Flex Fund

Mutual Fund Embraces Market Volatility as Stand-Alone Investment Strategy

STAMFORD, CT--(Marketwire - February 8, 2011) - The founding members of Bishop Asset Management are thrilled to announce the launch of their premier volatility-based investment vehicle -- The Bishop Volatility Flex Fund (VFF). Designed to be a non-correlating compliment to any investment portfolio, this Fund seeks to perform in both rising and falling market volatility environments. VFF is the first in a series of volatility-monetizing funds that the firm intends to bring to market.

Unlike most other volatility tracking investment products that are directional in nature, performing when market volatility is on the rise, the VFF seeks to capture both increasing and decreasing volatility trends. They believe this agnostic approach to the direction of market volatility makes the Fund a more appropriate choice for a long-term holding, serving as a diversifier in all market cycles rather than just a hedge against rising volatility.

"At Bishop Asset Management, we view volatility almost as its own unique asset class, in that the Fund monetizes volatility when positioned alongside more traditional investments," says Rob Steele, Co-Founder and President of Bishop Asset Management. "So many investors fear volatility, moving to cash in times of increasing market fluctuations. The VFF strategy can potentially serve as a supplement to cash, providing a portfolio shock absorber."

The Fund is designed to capture performance through all market cycles by employing a long-short strategy -- constantly holding both put and call options on the SPX. The strategy consists of forward-looking technical indicators as well as a historical statistical analysis of the trading range of the S&P 500. The model combines an exponentially weighted historical average with a tactical overlay. In short, the Fund's managers are actively managing a time-tested, quantitative strategy.

While the mutual fund product was recently launched, the Volatility Flex Strategy was successfully managed, for three years, as a hedge fund by portfolio manager, Kevin Nugent.

Founded in 2010, Bishop Asset Management is the Advisor to the Bishop Volatility Flex Fund. The firm's three Founders, long-time friends and colleagues, collectively have more than 75 years of professional investment experience, including product development, portfolio management, trading and sales and marketing.

Rob Steele has a long history of creating cutting-edge investment products. As a founding Executive of Rydex Investments, he was instrumental in the onset of a true paradigm shift in the financial industry through the development of a number of innovative, first to market mutual fund, ETF and hedge fund products.

"We believe that what we've been able to create is a low-risk, single-CUSIP solution that gives investors an alternative to turning to cash when markets fluctuate, and provides a true, long-term core holding that actually thrives upon market noise," says Kevin Nugent, Co-Founder and Chief Investment Officer at Bishop Asset Management. "Our goal for the firm is the same -- to continue to provide our investors with education, resources and investment strategies that will help them to not only better understand market volatility as a concept and an investment strategy, but to also embrace it."

Bishop Volatility
 Flex Fund
  Symbol   Annual Operating
Class A   BVFAX   1.33%
Class C   BVFCX   2.09%

Founded in 2010, Bishop Asset Management is the Advisor for the Bishop Volatility Flex Fund. The Firm seeks to create and distribute investment strategies that harness the benefits of market volatility and deliver solutions to the current challenges within traditional asset allocation.

For more information on the Bishop Volatility Flex Fund, or to speak with either Rob Steele or Kevin Nugent, please contact Melinda Staab at 760.295.8245 or

Mutual Funds involve risk including the possible loss of principal. When the Fund purchases a call option or put option on a security or index it may lose the entire premium paid if the underlying security or index does not increase or decrease in value respectively. The Fund is also exposed to default by the option writer who may be unwilling or unable to perform its contractual obligations to the Fund. ETFs linked to the S&P 500 are subject to investment advisory and other expenses, which will cause their performance to lag the S&P 500 Index. The use of leverage, such as that embedded in options, will magnify the Fund's gains or losses. A higher portfolio turnover will result in higher transactional and brokerage costs. The Fund will incur a loss as a result of a written options (also referred to as a short position) if the price of the written option instrument increases in value between the date when the Fund writes the option and the date on which the Fund purchases an offsetting position.

Investors should carefully consider the investment objectives, risks, charges and expenses of The Bishop Volatility Flex Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling 877-705-1115. The prospectus should be read carefully before investing. The Bishop Volatility Flex Fund is distributed by Northern Lights Distributors, LLC, member FINRA. Bishop Asset Management, LLC is not affiliated with Northern Lights Distributors, LLC.

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