SOURCE: Newfound Research

Newfound Research

June 10, 2015 13:52 ET

Newfound Research Launches Risk Managed U.S. Sectors Mutual Fund

BOSTON, MA--(Marketwired - Jun 10, 2015) - Newfound Research LLC, a Boston-based registered investment adviser and quantitative asset manager, is pleased to announce its latest tactically risk-managed mutual fund -- the Newfound Risk Managed U.S. Sectors Fund (NFDAX; NFDCX; NFDIX). This Fund invests in ETFs while seeking long-term capital appreciation with preservation of capital as a secondary objective.

Newfound utilizes a rules-based investment process to determine which securities to buy and sell for the Fund. The process relies on signals from Newfound's proprietary momentum models, which seek to evaluate the underlying trends of each of the 9 primary sectors of the U.S. equity market. If the momentum of a sector is positive, then it is included in the portfolio. If the momentum is negative, it is excluded from the portfolio.

Sectors that are included in the Fund are generally equally weighted, subject to Newfound's rebalancing methodology, with a maximum allocation per sector of 25%, measured at the time of rebalancing. 

When three or fewer sectors are represented in the Fund, the remainder of the Fund's assets will be held in cash or invested in investment grade short term fixed income securities, up to 100%. 

The Fund leverages Newfound's proprietary dynamic, volatility-adjusted momentum model, finalized in 2008, which has driven the investment decisions for billions of dollars in tactical strategies.

Corey Hoffstein, CIO, and Justin Sibears, managing director, serve as portfolio managers for the new Fund. "Advisors are looking for ways to complement diversification with more active approaches to risk management as they seek to participate in market growth and avoid significant losses," said Corey Hoffstein. "The Risk Managed U.S. Sectors Fund is our turnkey solution to tactically risk-managed U.S. equity exposure. While we've been providing our tactical sector signals to help manage similar strategies since 2008, this Fund now represents the only way for advisors to access a U.S. Sector-based ETF strategy powered by Newfound's signals in a mutual fund format."

For more information on the funds, please contact Tom Rosedale at 617-531-9773 or, or visit the firm's mutual fund website --

About Newfound Research LLC
Newfound Research designs and delivers quantitatively-enabled, tactical investment strategies, balancing a disciplined, research-driven approach with prudent strategy design to deliver intuitive, repeatable results. Newfound also partners with select asset management firms to collaboratively build investment solutions utilizing our tactical investment philosophy. Newfound's strategies strive to solve an identifiable investment problem and are distinguished by three qualities: a simple objective, a consistent process, and a thoughtful design. Newfound is the pioneer of dynamic, volatility-adjusted momentum models. Our models have been driving ETF-based strategies since 2008. For more information about Newfound, visit

Mutual Funds involve risk including the possible loss of principal. Adverse changes in currency exchange rates may erode or reverse any potential gains from the Fund's investments. ETFs are subject to specific risks, depending on the nature of the underlying strategy of the fund. These risks could include liquidity risk, sector risk, as well as risks associated with fixed income securities, real estate investments, and commodities, to name a few. Typically, a rise in interest rates causes a decline in the value of fixed income securities. A higher Fund turnover will result in higher transactional and brokerage costs.

Like all quantitative analysis, the adviser's investment model carries a risk that the mathematical model used might be based on one or more incorrect assumptions. No assurance can be given that the fund will be successful under all or any market conditions. Overall equity and fixed income securities market risks affect the value of the Fund. Factors such as domestic economic growth and market conditions, interest rate levels, and political events affect the securities markets. The earnings prospects of small and medium sized companies are more volatile than larger companies and may experience higher failure rates than larger companies.

There is no assurance that any Fund will achieve their investment objectives.

Investors should carefully consider the investment objectives, risks, charges and expenses of the Newfound Family of Funds. This and other important information about the Funds are contained in the prospectus, which can be obtained by calling 1-855-394-9777. The prospectus should be read carefully before investing. The Newfound Family of Funds are distributed by Northern Lights Distributors, LLC, Member FINRA/SIPC. Newfound Research, LLC is not affiliated with Northern Lights Distributors, LLC.

NLD Review Code: 5344-NLD-06/03/2015
Newfound Code: 3401429

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