Our Freedom Fund
The HCM Freedom Fund was launched in December 2004 and had
approximately $29 million as of February 2008. The HCM Freedom Fund
reflects the investment management approach of Dexter Lyons and Mark
Thomas. As described in the “About Us” section of this
website, Dexter and Mark believe that limiting losses is as important to
building capital as maximizing gains.
HCM typically chooses investment options from among market categories
or investment vehicles which represent pools of securities, including
major market indexes, more narrowly defined market sectors, exchange
traded funds (“ETFs”), and mutual
funds, among other options. The Fund’s portfolio is
positioned in response to movements by particular indexes, market
segments or even particular securities in an attempt to participate in a
developing trend. HCM may attempt to anticipate market moves and
initiate appropriate action in advance of actual market movements.
Unlike managers who attempt to limit risk by limiting their investment
options, HCM will attempt to manage risk by alternating between
investments in equity and fixed income securities, on the one hand, and
defensive, cash positions on the other. The Fund’s dynamic
asset allocation strategy may result in the investment of a large portion
or all of the assets of the Fund in cash or cash equivalents at any given
time to provide security of principal, current income and
liquidity. To earn income on available cash, a large portion or all
of the assets of the Fund may be invested in high quality, U.S.
dollar-denominated short-term obligations issued or guaranteed by the
U.S. Government, its agencies or instrumentalities and repurchase
agreements that are fully collateralized by such obligations.
The Prospectus describes in detail the
philosophy and operation of the Fund and investors should read the
Prospectus carefully. An investment in the Fund entails risks. The Fund could lose money, or
its performance could trail that of other investment alternatives.
The advisers cannot guarantee that the Fund will achieve its
objective. In addition, the Fund presents some risks not
traditionally associated with most mutual funds. It is important
that investors closely review and understand these risks before making an
investment in the Fund.