Hatteras Alpha Hedged Strategies Fund

 FACT SHEET   PRINT-FRIENDLY VERSION

Fund Facts as of July 31, 2010

Inception Date 09/23/02
Ticker Symbol ALPHX
APHCX
Total Net Assets
(in millions)		 $290
Minimum Purchase* $1,000
Minimum Subsequent Purchase* $250

* Broker platforms may set their own minimums

Objective

The Hatteras Alpha Hedged Strategies Fund seeks to achieve consistent returns with low correlation to traditional financial market indices. The Fund uses the S&P 500 Index and the Hedge Fund Research, Inc. ("HFRI") Fund of Funds Composite Index as its benchmarks.

Fund Name Ticker NAV Month YTD 1Y 3Y1 5Y1 Since incept.1,2
Hatteras Alpha Hedged Strategies Fund ALPHX $9.87 0.92% -1.40% 5.38% -6.46% -0.93% 1.86%
  APHCX3 $9.75 0.83% -1.91% 4.55% -7.17% -1.56% 1.44%
Total Annual Fund Operating Expenses are 5.17%. Net Fund Operating Expenses are capped at 3.99% excluding dividends on short positions and interest on borrowing. Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted.


  1. Average annual total return.
  2. ALPHX inception date: 9/23/2002; APHCX inception date: 8/1/2006.
  3. Performance figures for the C shares for periods prior to share class inception date represent the performance for no load shares, which have been restated to reflect the impact of the higher expense ratio of C shares, and with a 1% CDSC assessed on redemptions within one year of the date of purchase, for any periods of less than 1 year.

Important Disclosures and Risk Factors

The Funds' investment objectives, risks, charges and expenses must be considered carefully before investing. The summary prospectus and prospectus contain this and other important information about the investment company, and may be obtained by calling 1.877.569.2382 or clicking here. Read it carefully before investing.

Certain hedging techniques and leverage employed in the management of the Funds may accelerate the velocity of possible losses. Short selling involves the risk of potentially unlimited increase in the market value of the security sold short, which could result in potentially unlimited loss for the Funds. Derivatives involve investment exposure that may exceed the original cost and a small investment in derivatives could have a large potential impact on the performance of the Funds. Options held in the Funds may be illiquid and the fund manager may have difficulty closing out a position. The Funds may also invest in:

  • smaller capitalized companies - subject to more abrupt or erratic market movements than larger, more established companies;
  • foreign securities, which involve currency risk, different accounting standards and are subject to political instability;
  • securities limited to resale to qualified institutional investors, which can affect their degree of liquidity;
  • shares of other investment companies that invest in securities and styles similar to the Funds, resulting in a generally higher investment cost than from investing directly in the underlying shares of these funds.

The Funds intend to utilize these individual securities and hedging techniques in matched combinations that are designed to neutralize or offset the individual risks of employing these techniques separately. Some of these matched strategies include merger arbitrage, long/short equity, convertible bond arbitrage and fixed-income arbitrage. There is no assurance that these strategies will protect against losses. The Funds are non-diversified and therefore may invest in the securities of fewer issuers than diversified funds at any one time; as a result, the gains and losses of a single security may have a greater impact on the Funds' share price.

Because the Funds are fund-of-funds, your cost of investing in the Funds will generally be higher than the cost of investing directly in the shares of the mutual funds in which it invests. By investing in the Funds, you will indirectly bear your share of any fees and expenses charged by the underlying funds, in addition to indirectly bearing the principal risks of the funds. Please refer to the summary prospectus or prospectus for more information about the Funds, including risks, fees and expenses.

While the Funds are no-load, management fees and other expenses still apply. Mutual fund investing involves risk; loss of principal is possible. Please consult an investment professional for advice regarding your particular circumstances. An investment in the Funds may not be suitable for all investors.

The Funds are offered only to United States residents, and information on this site is intended only for such persons. Nothing on this site should be considered a solicitation to buy or an offer to sell shares of the Funds in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.

The Funds are distributed by Hatteras Capital Distributors, LLC, an affiliate of Hatteras Alternative Mutual Funds by virtue of common control or ownership.

Securities offered through Hatteras Capital Distributors, LLC, member of FINRA / SIPC. Hatteras Capital Distributors, LLC is affiliated with Hatteras Alternative Mutual Funds, LLC by virtue of common control/ownership.