Overview

ABOUT

The ATAC Rotation Funds are designed to be absolute return, tactical strategies. The Funds seek to rotate between equities or Treasuries based on leading indicators of stock market volatility.

Our Mutual Fund: The ATAC Rotation Fund (Investor Class: ATACX, Institutional Class: (ATCIX): In offensive mode, ATACX can invest in U.S. large-cap ETFs, U.S. small-cap ETFs, or Emerging Market ETFs. In defensive mode, ATACX can invest in long-duration Treasuries or short duration Treasuries.

Our Exchange Traded Fund: The ATAC US Rotation ETF (Ticker: RORO) In offensive mode, RORO can invest in U.S. small-cap and large-cap growth ETFs. In defensive mode, RORO can invest in long-duration Treasuries. The indicators are driven by the behavior of Lumber and Gold, two historically leading indicators of market volatility, which are evaluated on a weekly basis for potential rotations in the exchange traded fund.

Why the ATAC Funds?
  • Attempts to provide absolute returns in all investing environments
  • Objective, quantitative process not subject to behavioral biases
  • Seeks to provide high liquidity and transparency with low fees
  • Provides diversification to traditional stock and bond portfolios

The ATAC Funds are managed by Toroso Investments, LLC, an independent registered investment advisor. The strategies were developed by Portfolio Manager Michael A. Gayed, CFA.

roroatac_image

5 Reasons to Invest in ATAC Funds

_______

01. Add Diversification Benefits to Your Portfolio

ATAC Funds have a low correlation to both stocks and bonds. As a result, the addition of ATAC funds to an investor’s existing portfolio may provide diversification benefits over time.

02. Ability to Mitigate Risk in Times of Stress

ATAC Funds have the ability to rotate fully into Treasury bond ETFs ahead of periods of equity market stress. Treasury bonds have historically exhibited positive returns on average during down equity markets, allowing ATAC Funds to potentially mitigate risk during difficult periods.

3. Ability to Generate Positive Returns in Both Up and Down Market Environments

The ATAC strategies are not dependent on a specific direction of the equity market. Both the mutual fund (ticker: ATACX/ATCIS) and the ETF (ticker: RORO) have the ability to capture upside in favorable environments by rotating fully into equity ETFs and the ability to generate positive returns in down environments by rotating fully into Treasury ETFs.

4. Hedge Against the Risk of Rising Interest Rates

Many fixed income investors are concerned about the risk of rising interest rates. The ATAC Funds approach have historically exhibited a low correlation to bonds, generating a positive return on average during months in which the 10-Year Treasury yield has risen.

5. Systematic and Objective Process

The ATAC Funds use a systematic and objective process to position into either equities or Treasuries. The process is consistent and repeatable, attempting to evaluate conditions which favor higher or lower stock market volatility. The strategies positions defensively in Treasury ETFs when the odds favor rising volatility and offensively in equity ETFs when the odds favor falling volatility.

PORTFOLIO MANAGERS BIOS

Michael_Gayed2

Michael A. Gayed, CFA
Portfolio Manager

As Portfolio Manager, Mr. Gayed helps to structure portfolios to best take advantage of various strategies designed to maximize the amount of time and capital spent in potentially outperforming investments.

Prior to his current role, he served as Portfolio Manager for a large international investment group, trading long/short investment ideas. From 2004 – 2008, he was a Portfolio Strategist at AmeriCap Advisers, LLC. As a member of the investment committee, he performed detailed analysis and helped to structure client portfolios. In 2007, Mr. Gayed launched his own long/short hedge fund, using various trading strategies focused on taking advantage of stock market anomalies.

Mr. Gayed is an active contributor to popular financial websites and has been interviewed on national media, including CNBC and Bloomberg TV/Radio. An award-winning author, Mr. Gayed is a sought after speaker discussing his research and unique approach to interpreting market movements. He has co-authored four award-winning research papers on market anomalies and investing.

Mr. Gayed earned his B.S. from New York University and is a CFA Charterholder.​

Michael Venuto, CIO
Co-Portfolio Manager

Michael J. Venuto is an ETF industry veteran with over a decade of experience in the design and implementation of ETF-based investment strategies. He is Co-Founder and Chief Investment Officer of Toroso Investments, LLC. Michael is the lead portfolio for the first actively managed ETF focused on Blockchain (BLOK) companies filed in the US. He is also, behind the launch of the Toroso ETF Industry Index, which measures and monitors the performance of publicly traded companies that derive revenue from the Exchange Traded Funds ecosystem.

Previously, he was Head of Investments at Global X Funds where he provided portfolio optimization services to institutional clients. Before that, he was Senior Vice President at Horizon Kinetics where his responsibilities included new business development, investment strategy, Fintech private equity and strategic initiatives. In 2014, Michael was chosen as one the ETF.COM All Stars for his research and is often quoted as an ETF expert in publications such as Reuters and Barron’s.

mikevenuto2

Newsletter SignUp

Sign Up For Our Latest Updates

ATACX

ATAC ROTATION FUND

ATACX had an Overall Morningstar Rating of 5 Stars out of 224 Tactical Allocation Funds as of 9/30/2020 based on risk adjusted returns.

The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating™ for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating™ metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

In each Morningstar Category, the 10% of funds with the lowest measured risk are described as Low Risk, the next 22.5% Below Average, the middle 35% Average, the next 22.5% Above Average, and the top 10% High. Morningstar Risk is measured for up to three time periods (three, five, and 10 years). These separate measures are then weighted and averaged to produce an overall measure for the fund. Funds with less than three years of performance history are not rated.

The ATAC Rotation Investor (ATACX) received 5 stars for the 3- and 5-year time periods among 224 and 185 Tactical Allocation funds for the period ending 9/30/20. Ratings for other share classes may differ.

©2020 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.