The fund is the successor to the Hancock Horizon Quantitative Long/Short Fund (the “Predecessor Fund”) pursuant to a reorganization involving the fund and the Predecessor Fund that occurred on 9/27/2021. The Predecessor Fund is both the tax and accounting survivor of the reorganization. Prior to the date of the reorganization, the fund had no investment operations. Accordingly, the performance information for periods prior to the reorganization (the fund’s commencement of operations) is historical information for the Predecessor Fund. The Predecessor Fund pursued different investment strategies than the fund, so the performance of the fund is likely to differ after the reorganization. References to the fund throughout should be read to include the Predecessor Fund.
†dagger disclosure The fund's expense ratio is from the most recent prospectus. The expense ratio may reflect voluntary fee waivers and/or expense reimbursements determined by the fund's Advisor and/or its affiliates. The voluntary waivers and/or reimbursements, if applicable, are in effect up to but not including the later of 03/01/2024 or the date of the fund's next effective prospectus. The expense ratio includes Dividends and Other Expenses Related to Short Sales. If Dividends and Other Expenses Related to Short Sales were excluded, the total net expenses would have been 1.09%.
The 3-year beta represents the 3-year beta relative to the Russell 3000 Index. While not the fund’s official ICE BofA 3-Month Treasury Bill Index benchmark, the fund uses the Russell 3000 Index as its representation for the broad equity market. For periods prior to 9/27/21, the figure is based on the historic returns of the Federated Hermes MDT Market Neutral Institutional Composite, which is a performance composite consisting of all private accounts and funds with substantially similar investment objectives, strategies, policies and risks to those of the fund that also are managed by the fund’s investment adviser Federated MDTA LLC, and not that of the fund or the predecessor fund. As a market neutral fund, the fund targets a near-zero beta relative to the broad equity market, which was not an objective of the predecessor fund.
*Totals may not add or match due to rounding.
While the Fund anticipates paying capital gains annually, the Fund may make such special distributions of dividends and capital gains as necessary to meet applicable regulatory requirements.
The quantitative models and analysis used by the fund may perform differently than expected and negatively affect fund performance.
There is no guarantee that the use of long and short positions will succeed in limiting the Fund’s exposure to domestic stock market movements, capitalization, sector-swings or other risk factors.
The fund may make short sales of securities, which involves unlimited risk including the possibility that losses may exceed the original amount invested.
Small company stocks may be less liquid and subject to greater price volatility than large capitalization stocks.
Mid-capitalization companies often have narrower markets and limited managerial and financial resources compared to larger and more established companies.
After-tax returns are calculated using a standard set of assumptions. Actual after-tax returns depend on each investor’s personal tax situation, and are likely to differ from those shown. The stated returns assume the highest historical federal income and capital gains tax rates, but do not reflect the effect of any applicable state and local taxes. Return After Taxes on Distributions assumes a continued investment in the fund and shows the effect of taxes on fund distributions. Return After Taxes on Distribution and Sale of Fund Shares assumes all shares were redeemed at the end of each measurement period, and shows the effect of any taxable gain (or offsetting loss) on redemption, as well as the effects of taxes on fund distributions. After-tax returns are not relevant to investors holding shares through tax-deferred programs, such as IRA, 401(k) plans. The after-tax average annual total returns are based on the 37% tax bracket and include the 3.8% tax on net investment income.
Total returns for periods of less than one year are cumulative.
Total return may have been lower in the absence of temporary expense waivers or reimbursements.
Mutual funds are subject to risks and fluctuate in value.
Product classifications noted at the top are Federated Hermes' internal classifications.
The holdings percentages are based on net assets at the close of business on the date above, and may not necessarily reflect adjustments that are routinely made when presenting net assets for formal financial statement purposes. Because this is a managed portfolio, the investment mix will change.
Current and future portfolio holdings are subject to risk.
Investors should carefully consider the fund's investment objectives, risks, charges and expenses before investing. To obtain a summary prospectus or prospectus containing this and other information, contact us or view the prospectus provided on this website. Please carefully read the summary prospectus or prospectus before investing.