RIDGEFIELD, CT--(Marketwired - Feb 11, 2014) - Simple Alternatives, LLC, a leading alternative mutual fund company focused on providing investors better access to hedge fund managers, announced today that its flagship S1 Fund (NASDAQ: SONEX), achieved the renowned five-star rating from Morningstar for its performance in the three-year period ended January 31, 2014. The S1 Fund is a multi-manager, long/short equity mutual fund.
"We are very pleased to see the S1 Fund (SONEX) achieve a five-star rating from Morningstar," said Jim Dilworth, CEO and founder of Simple Alternatives. "The S1 Fund is the only five-star rated multi-manager fund across the multialternative or long/short equity category. This is a testament to the quality and dedication of our fund managers, and demonstrates to investors that they have the potential to achieve superior risk-adjusted returns while enjoying the diversification benefits of a multi-manager fund."
The S1 Fund (SONEX) received an overall 5-star Morningstar Rating, based on risk-adjusted returns for the three-year period ended January 31, 2014 (out of 142 multialternative funds). Also notable, the S1 Fund was ranked as the No.1 Fund in Trailing Investor Returns by Morningstar in the Multialternative category for the one-year period, and No.3 for the three-year period, ended January 31, 2014. (1) http://performance.morningstar.com
Simple Alternatives believes that small to mid-sized hedge fund managers who have proven short-selling experience are most likely to outperform over a full market cycle. For years, foundations, endowments and other large financial institutions have come to rely on the skilled managers at long/short equity hedge funds to provide a smoother return profile.
"The S1 Fund is seeing a strong interest from institutional consultants and advisors, many of whom already use hedge funds, and increasingly they prefer to get part or all of their long/short equity exposure via a mutual fund," concluded Dilworth.
Through a disciplined investment process that focuses on strategy allocation, manager selection and risk management, the S1 Fund seeks to grow capital regardless of market direction. Financial advisors use alternative strategies like the S1 Fund in a portfolio to add diversification, lower volatility and downside risk.
About Simple Alternatives, LLC
Simple Alternatives is an investment manager focused on liquid alternative strategies. The company is 100% independent and employee owned. Simple Alternatives' S1 Fund (SONEX) is a multi-manager alternative mutual fund that utilizes a portfolio of skilled (fundamentally-based) long/short equity managers who each bring a unique edge to the portfolio. The S1 Fund (the "Fund") seeks to provide long-term capital appreciation with an emphasis on absolute (positive) returns and low correlation to traditional financial market indices such as the S&P 500® Index. Structured as a mutual fund, the S1 Fund offers direct access to long/short equity strategies to a wide range of investors, with the benefits of daily liquidity, high transparency and low investment minimums.
For more information on Simple Alternatives, LLC and the S1 Fund please visit www.simplealternatives.com
(1) Source: Morningstar.com, (http://performance.morningstar.com/fund/ratings-risk.action?t=SONEX®ion=usa&culture=en-US), February 5, 2014.
About Morningstar Ratings™
As of 1/31/14, the Simple Alternatives S1 Fund was rated against 142 Multialternative Funds in the last three years and received a five-star rating.
For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance.
The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating™ for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics.
Morningstar Investor Return (also known as dollar-weighted return) measures how the average investor fared in a fund over a period of time. Investor return incorporates the impact of cash inflows and outflows from purchases and sales and the growth in fund assets. In contrast to total returns, investor returns account for all cash flows into and out of the fund to measure how the average investor performed over time. Investor return is calculated in a similar manner as internal rate of return. Investor return measures the compound growth rate in the value of all dollars invested in the fund over the evaluation period. Investor return is the growth rate that will link the beginning total net assets plus all intermediate cash flows to the ending total net assets.
© 2014 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
The Fund is non-diversified and may focus its investments in the securities of a comparatively small number of issuers. Concentration in securities of a limited number of issuers exposes a fund to greater market risk and potential monetary losses than if its assets were diversified among the securities of a greater number of issuers. The Fund may invest in small- and medium-sized companies which involve greater risk than investing in larger, more established companies, such as increased volatility of earnings and prospects, higher failure rates, and limited markets, product lines or financial resources.
The Fund may invest in foreign or emerging markets securities which involve special risks, including the volatility of currency exchange rates and, in some cases, limited geographic focus, political and economic instability, and relatively illiquid markets.
The Fund may invest in debt securities which are subject to interest rate risk. An increase in interest rates typically causes a fall in the value of the debt securities in which the Fund may invest. The Fund may also invest in high yield, lower rated (junk) bonds which involve a greater degree of risk and price fluctuation than investment grade bonds in return for higher yield potential. The Fund's distressed debt strategy may involve a substantial degree of risk, including investments in sub-prime mortgage securities.
The Fund may purchase securities of companies in initial public offerings. Special risks associated with these securities may include a limited number of shares available for trading, unseasoned trading, lack of investor knowledge of the company and limited operating history. The Fund may leverage transactions which include selling securities short as well as borrowing for other than temporary or emergency purposes. Leverage creates the risk of magnified capital losses.
The Fund may also invest in derivatives which can be volatile and involve various types and degrees of risks, depending upon the characteristics of a particular derivative. The Fund may invest in options and futures which are subject to special risks and may not fully protect the Fund against declines in the value of its stocks. In addition, an option writing strategy limits the upside profit potential normally associated with stocks. Futures trading is very speculative, largely due to the traditional volatility of futures prices.
Investors should carefully consider the Fund's investment objectives, risks, charges and expenses before investing. For a summary prospectus, or prospectus that contains this and other information, call 866-882-1226. Read the prospectus carefully before investing.
The S1 Fund is distributed by Foreside Funds Distributors LLC Berwyn, PA who is not affiliated with Simple Alternatives, LLC