Horizon Defined Risk Fund
Name
As of 02/10/2025Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
Vitals
YTD Return
2.0%
1 yr return
15.0%
3 Yr Avg Return
8.9%
5 Yr Avg Return
7.6%
Net Assets
$525 M
Holdings in Top 10
34.1%
52 WEEK LOW AND HIGH
Expenses
OPERATING FEES
Expense Ratio 1.44%
SALES FEES
Front Load N/A
Deferred Load N/A
TRADING FEES
Turnover 27.00%
Redemption Fee N/A
Min Investment
Standard (Taxable)
$2,500
IRA
N/A
Fund Classification
Fund Type
Open End Mutual Fund
Name
As of 02/10/2025Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
HNDRX - Profile
Distributions
- YTD Total Return 2.0%
- 3 Yr Annualized Total Return 8.9%
- 5 Yr Annualized Total Return 7.6%
- Capital Gain Distribution Frequency Annually
- Net Income Ratio 0.35%
- Dividend Yield 0.1%
- Dividend Distribution Frequency Annual
Fund Details
-
Legal NameHorizon Defined Risk Fund
-
Fund Family NameHorizon Funds
-
Inception DateDec 28, 2017
-
Shares Outstanding4724342
-
Share ClassInvestor
-
CurrencyUSD
-
Domiciled CountryUS
-
ManagerScott Ladner
Fund Description
The Defined Risk Fund’s investment adviser, Horizon Investments, LLC (“Horizon”), seeks to achieve the Defined Risk Fund’s investment objective by investing in a broadly diversified portfolio of equity securities (the “Equity Portfolio”), while seeking to generate income, hedge volatility and reduce the downside risk of the Equity Portfolio by buying and selling put and call options (the “Options Portfolio”). Horizon expects that the combination of the returns from the Equity Portfolio and the potential cash flow, reduced volatility and downside protection from the Options Portfolio will provide the Defined Risk Fund with the potential to capture a majority of the returns associated with the general equity markets with reduced risk and volatility.
Equity Portfolio
Securities in the Equity Portfolio may include common and preferred stock, exchange-traded funds (“ETFs”), convertible debt securities, American Depositary Receipts (“ADRs”), and securities issued by real estate investment trusts (“REITs”).
Horizon selects equity securities for the Defined Risk Fund’s Equity Portfolio by assessing each security’s projected return and expected risk using a multi-disciplined approach consisting of economic, quantitative and fundamental analysis.
The Equity Portfolio typically focuses on investing in individual stocks. However, the Equity Portfolio may also invest in ETFs or baskets of securities, preferred stock, convertible debt securities, ADRs and REITs when Horizon believes such investments may offer higher return and/or lower risk than individual securities or when Horizon believes such investments will provide strategic exposure to a desired sector or market segment. Potential ETFs are reviewed for sufficient trading liquidity and fit within the overall diversification needs of the Equity Portfolio prior to investment. Horizon selects securities for the Equity Portfolio without restriction as to an issuer’s country or capitalization.
The Defined Risk Fund will typically sell equity securities to achieve a desired diversification, to secure gains or limit potential losses or when Horizon otherwise believes it is in the best interest of the Defined Risk Fund. Horizon expects to engage in frequent buying and selling of securities to achieve the Defined Risk Fund’s investment objective.
Options Portfolio
The Options Portfolio will generally consist of options “collars”, which are options combinations comprised of a written call option or call spread and a purchased put option or put spread on the same underlying security. To implement an options collar, the Defined Risk Fund will write a call option or call spread on the underlying security with a strike price above the price of the underlying security and purchase a corresponding put option or put spread on the same underlying security with a strike price below the price of that security. A call or put “spread” is an option combination whereby the Defined Risk Fund buys an option for investment purposes and writes another option on the same underlying security with the same expiration date, but a different strike price (e.g., a higher strike price in the case of a call and a lower strike price in the case of a put), as a way to offset some of the cost of purchasing the first option.
When the Defined Risk Fund writes (sells) a call or put option, it receives a premium from the purchaser, which may be used to offset the price of purchasing other options. In addition to the cash flow generated by the selling options, the Defined Risk Fund will write call options to seek to reduce the volatility of the Equity Portfolio, especially in down or sideways markets. Writing call options will, however, reduce the Defined Risk Fund’s ability to profit from increases in the value of the Equity Portfolio because the Defined Risk Fund will begin to accrue liabilities to the purchaser of the call option once the price of the underlying security rises above the option’s strike price. The Defined Risk Fund will buy corresponding put options in an attempt to protect the Defined Risk Fund from significant market declines in the Equity Portfolio that may occur over short periods of time. The Defined Risk Fund will primarily use exchange-traded options on indexes, ETFs and other individual equity securities, but may also use over-the-counter options when Horizon deems it advisable to do so.
The Defined Risk Fund will typically increase its use of options collars when the Adviser’s research indicates that markets are likely to experience volatility, and there is no maximum or minimum amount of assets that the Defined Fund may use to invest in options collars.
Horizon uses quantitative techniques to screen the available option universe for options collars that Horizon believes offer the best risk/return characteristics for the Equity Portfolio, taking into account, among other things, the following characteristics:
• | liquidity of underlying instruments |
• | basis risk/tracking error between portfolio & options positions |
• | volatility forecasts |
• | option relative valuation |
• | time to maturity & strike prices |
The Defined Risk Fund typically expects to allow the options in the Options Portfolio to expire, but may seek to close out options positions ahead of expiration when Horizon believes it is advantageous to do so.
There is no limit on the number or size of the options transactions in which the Fund may engage; however, the Fund will not use options for the purpose of increasing the Fund’s leverage with respect to any portfolio investment.
HNDRX - Performance
Return Ranking - Trailing
Period | HNDRX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 2.0% | -2.8% | 240.8% | 73.52% |
1 Yr | 15.0% | -4.3% | 140.6% | 66.96% |
3 Yr | 8.9%* | -8.3% | 18.3% | 62.82% |
5 Yr | 7.6%* | -5.0% | 17.3% | N/A |
10 Yr | N/A* | -4.6% | 13.2% | N/A |
* Annualized
Return Ranking - Calendar
Period | HNDRX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2024 | 15.3% | -34.1% | 904.0% | 39.19% |
2023 | 14.7% | -28.6% | 438.4% | 39.31% |
2022 | -10.4% | -93.5% | 8.2% | 15.17% |
2021 | 12.8% | -38.9% | 19.8% | N/A |
2020 | 6.6% | -10.9% | 12.8% | N/A |
Total Return Ranking - Trailing
Period | HNDRX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 2.0% | -2.7% | 244.0% | 74.31% |
1 Yr | 15.0% | -4.3% | 140.6% | 64.78% |
3 Yr | 8.9%* | -8.3% | 18.3% | 59.62% |
5 Yr | 7.6%* | -5.4% | 17.3% | N/A |
10 Yr | N/A* | -4.6% | 13.2% | N/A |
* Annualized
Total Return Ranking - Calendar
Period | HNDRX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2024 | 15.4% | -34.1% | 904.0% | 39.19% |
2023 | 15.0% | -5.9% | 438.4% | 39.88% |
2022 | -10.1% | -81.2% | 8.2% | 17.24% |
2021 | 13.1% | -29.0% | 19.8% | N/A |
2020 | 7.2% | -10.9% | 12.8% | N/A |
NAV & Total Return History
HNDRX - Holdings
Concentration Analysis
HNDRX | Category Low | Category High | HNDRX % Rank | |
---|---|---|---|---|
Net Assets | 525 M | 25 | 17.4 B | 28.84% |
Number of Holdings | 515 | 2 | 508 | 1.91% |
Net Assets in Top 10 | 221 M | -6.66 M | 5.12 B | 40.84% |
Weighting of Top 10 | 34.06% | 11.3% | 100.0% | 52.00% |
Top 10 Holdings
- Apple Inc 6.93%
- Microsoft Corp 6.51%
- NVIDIA Corp 6.17%
- Amazon.com Inc 3.43%
- Meta Platforms Inc 2.40%
- Alphabet Inc 2.02%
- Berkshire Hathaway Inc 1.81%
- Alphabet Inc 1.69%
- Eli Lilly Co 1.61%
- Broadcom Inc 1.49%
Asset Allocation
Weighting | Return Low | Return High | HNDRX % Rank | |
---|---|---|---|---|
Stocks | 99.57% | -3.92% | 100.76% | 0.38% |
Cash | 0.58% | -0.76% | 100.29% | 99.62% |
Preferred Stocks | 0.00% | 0.00% | 3.08% | 9.92% |
Convertible Bonds | 0.00% | 0.00% | 20.91% | 12.21% |
Bonds | 0.00% | 0.00% | 97.96% | 19.08% |
Other | -0.14% | 0.00% | 45.92% | 25.57% |
Stock Sector Breakdown
Weighting | Return Low | Return High | HNDRX % Rank | |
---|---|---|---|---|
Technology | 25.61% | 0.00% | 44.43% | 65.55% |
Healthcare | 13.66% | 0.00% | 25.91% | 74.79% |
Financial Services | 13.18% | 0.00% | 29.60% | 69.75% |
Consumer Cyclical | 11.77% | 0.00% | 19.02% | 17.23% |
Communication Services | 9.43% | 0.00% | 21.22% | 15.13% |
Industrials | 8.17% | 1.41% | 43.91% | 69.75% |
Consumer Defense | 6.56% | 0.00% | 22.87% | 22.69% |
Energy | 3.88% | 0.00% | 69.54% | 86.13% |
Utilities | 2.73% | 0.00% | 13.35% | 75.63% |
Real Estate | 2.70% | 0.00% | 9.74% | 78.99% |
Basic Materials | 2.32% | 0.00% | 60.58% | 76.47% |
Stock Geographic Breakdown
Weighting | Return Low | Return High | HNDRX % Rank | |
---|---|---|---|---|
US | 99.57% | -3.89% | 100.00% | 1.15% |
Non US | 0.00% | -2.17% | 99.33% | 69.08% |
HNDRX - Expenses
Operational Fees
HNDRX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Expense Ratio | 1.44% | 0.20% | 6.78% | 47.74% |
Management Fee | 0.80% | 0.20% | 1.75% | 49.25% |
12b-1 Fee | 0.10% | 0.00% | 1.00% | 66.67% |
Administrative Fee | N/A | 0.02% | 0.28% | N/A |
Sales Fees
HNDRX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Front Load | N/A | 4.75% | 5.75% | N/A |
Deferred Load | N/A | 1.00% | 1.00% | N/A |
Trading Fees
HNDRX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Max Redemption Fee | N/A | 1.00% | 2.00% | N/A |
Related Fees
Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.
HNDRX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Turnover | 27.00% | 0.00% | 456.80% | 55.36% |
HNDRX - Distributions
Dividend Yield Analysis
HNDRX | Category Low | Category High | HNDRX % Rank | |
---|---|---|---|---|
Dividend Yield | 0.09% | 0.00% | 3.76% | 13.75% |
Dividend Distribution Analysis
HNDRX | Category Low | Category High | Category Mod | |
---|---|---|---|---|
Dividend Distribution Frequency | Annual | Annually | Monthly | Annually |
Net Income Ratio Analysis
HNDRX | Category Low | Category High | HNDRX % Rank | |
---|---|---|---|---|
Net Income Ratio | 0.35% | -2.54% | 14.24% | 43.03% |
Capital Gain Distribution Analysis
HNDRX | Category Low | Category High | Capital Mode | |
---|---|---|---|---|
Capital Gain Distribution Frequency | Annually | Annually | Annually | Annually |
Distributions History
Date | Amount | Type |
---|---|---|
Dec 19, 2024 | $0.073 | OrdinaryDividend |
Dec 21, 2023 | $0.138 | OrdinaryDividend |
Dec 22, 2022 | $0.211 | OrdinaryDividend |
Dec 27, 2021 | $0.185 | OrdinaryDividend |
Dec 21, 2020 | $0.327 | OrdinaryDividend |
Dec 20, 2019 | $0.301 | OrdinaryDividend |
Dec 24, 2018 | $0.169 | OrdinaryDividend |
Dec 24, 2018 | $0.092 | CapitalGainShortTerm |
Dec 24, 2018 | $0.017 | CapitalGainLongTerm |
HNDRX - Fund Manager Analysis
Managers
Scott Ladner
Start Date
Tenure
Tenure Rank
Nov 01, 2016
5.58
5.6%
Mr. Ladner serves as Chief Investment Officer and is the Chair of the Investment Committee for Horizon. In these capacities, he oversees all aspects of the Investment Management division for the firm. He also provides the Investment Management division with Macro analysis and interpretation of global derivatives, credit, foreign exchange, equity, and funding markets. His previous roles at Horizon included Head of Risk and Director of Quantitative & Alternative Strategies. Prior to Horizon, Mr. Ladner was a founder of Charlotte Global Advisors and Principal Guard, LLC. Mr. Ladner helped to launch an equity index volatility and dispersion trading unit at PEΔK6 Investments in Chicago, a proprietary listed option and volatility trading firm. Previously at First Union/Wachovia, Mr. Ladner founded and ran the equity swap and forwards portfolio while also managing equity option and volatility portfolios. He also co-founded and managed the Risk Arbitrage and Special Situations portfolio.Mr. Ladner then managed the swaption and cap/floor portion of the bank’s interest rate derivatives portfolio. Mr. Ladner received his BA in Economics and Russian Language & Literature from the University of North Carolina at Chapel Hill.
Michael Dickson
Start Date
Tenure
Tenure Rank
Mar 31, 2018
4.17
4.2%
Dr. Dickson serves as Head of Portfolio Management and in this role oversees all investment strategies managed by Horizon. He also conducts research on the development of quantitative methods and strategies that support Horizon’s investment process and new product development. His research is published in scholarly journals and he frequently speaks on these topics at industry conferences. In previous roles at Horizon, he served as Director of Structured Financial Solutions and as a portfolio manager with an emphasis on retirement income and protection strategies. Dr. Dickson specializes in the areas of empirical asset pricing, portfolio construction, and factor models. Both during and after his Ph.D. studies he taught undergraduate and graduate school coursework in finance and portfolio management at UNC Charlotte. Prior to earning his Ph.D. he worked in financial analysis support roles at Premier, Inc. and Global Compliance. Dr. Dickson received his BS in Chemistry from Winthrop University and both an MS in Economics and Ph.D. in Finance from UNC Charlotte.
Zachary Hill
Start Date
Tenure
Tenure Rank
Feb 18, 2022
0.28
0.3%
Mr. Hill is part of the Investment Management division at Horizon Investments focusing on and providing investment insight on a broad range of asset allocation decisions from a global macro and derivatives perspective. Prior to joining Horizon in 2019, Mr. Hill served as a Senior Portfolio Analyst for Cold Spring Asset Management in New York from July 2016 to January 2017 and was a director within the foreign exchange option trading group at Wells Fargo in New York from 2010 to 2016. Mr. Hill began his career at Wachovia, acquired by Wells Fargo in 2008, in Charlotte in the FX Division. Mr. Hill holds a BA in Economics and a BA in Physics from the University of Virginia. Mr. Hill is also a CFA ® Charterholder.
Tenure Analysis
Category Low | Category High | Category Average | Category Mode |
---|---|---|---|
0.04 | 19.77 | 3.61 | 5.67 |