RFLR

RFLR seeks to capture the upside of the US small-cap equity market while actively managing option strategies in an attempt to limit losses to 10% each year. The fund invests in an equity portfolio comprised of US small-caps and FLEX options to hedge the downside risk at 10% on an annual basis. The hedge piece rolls quarterly such that there are four floors, with one expiring every three months. The fund's laddered approach is meant to help offset the timing risks inherent in a single reset and roll date. The sub-adviser also sells short-dated (two-week) call options in tranches, with expirations staggered every three to four days, in an attempt to generate incremental income.