LSEQ

LSEQ aims to optimize returns while managing risk amid evolving market conditions by balancing long and short positions in equity securities. The fund invests in US large and mid-cap stocks, utilizing a multifactor model for long positions and a dedicated short model to identify potential underperformers. Central to its approach is a proprietary macroeconomic regime model, which classifies market environments into value, neutral, or momentum regimes. This model influences gross and net exposure levels, as well as factor weights such as value, quality, profitability, and momentum. Industry group selection is based on perceived alpha opportunities which focuses on sectors exhibiting the highest return dispersion. To manage risk, the fund maintains long and short exposures to counteract downside tail risk, gauged by the Sortino ratio. Investments may include T-bills, derivatives, limited foreign exposure, and reverse repurchase agreements. On December 4, 2023, LSEQ converted from a mutual fund to an ETF starting with $3.63 million in net assets.