Diversification does not assure a profit nor protect against loss.
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.
The value of equity securities in the fund’s portfolio will fluctuate and, as a result, the fund’s share price may decline. Equity securities may decline in value because of an increase in interest rates or changes in the stock market.
†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 03/01/2025 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 US 3-Month Treasury Bill Index benchmark, the fund uses the Russell 3000® Index as its representation for the broad equity market. 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. As a market neutral fund, the fund expects returns to be uncorrelated to the returns and direction of the general stock market, which was not an objective of the predecessor fund.
The quantitative models and analysis used by the fund's adviser may perform differently than expected and negatively affect fund performance.
*Totals may not add or match due to rounding.
Small-cap companies may have less liquid stock, a more volatile share price, unproven track records, a limited product or service base and limited access to capital. The above factors could make small-cap companies more likely to fail than larger companies and increase the volatility of a fund’s portfolio, performance and share price. Suitable securities of small-cap companies also can have limited availability and cause capacity constraints on investment strategies for funds that invest in them.
Growth stocks tend to have higher valuations and thus are typically more volatile than value stocks. Growth stocks also may not pay dividends or may pay lower dividends than value stocks.
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.
Value stocks tend to have higher dividends and thus have a higher income-related component in their total return than growth stocks. Value stocks also may lag growth stocks in performance at times, particularly in late stages of a market advance.
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's use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional instruments.
The fund may make short sales of securities, which involves unlimited risk including the possibility that losses may exceed the original amount invested.
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.