The Absolute Capital Opportunities Fund (CAPOX) seeks to achieve long-term capital appreciation with a lower sensitivity to traditional financial market indices such as the Standard & Poor’s 500® Index. It uses a flexible approach to value investing and seeks to generate returns from multiple sources. It is sub-advised by a team at Chicago-based Kovitz, led by Mark C. Rosland and Joel D. Hirsh. The team at Kovitz varies the fund’s net exposures (long and short) and utilizes tail-risk hedging to potentially benefit from volatility.

The fund’s minimum investment is $2,500.

Mark C. Rosland is a principal and investment committee member at Kovitz. He serves as a portfolio manager for the Kovitz Hedged Equity strategy. Mark manages the wealth management division of Kovitz and is also a member of the firm’s executive committee, supervising firm-wide operations and business strategy. He also serves on the firm’s marketing and risk management committees.

Joel D. Hirsh serves as principal and co-chief investment officer of the investment team in Chicago. In this role, Joel is responsible for leading the firm’s equity research process, as well as developing portfolio construction for Kovitz’ Core Equity and Hedged Equity strategies. He also serves as a member of the firm’s fiduciary board and executive committee, supervising daily operations and business strategy implementation.

I spoke with Mark and Joel on July 6.

Tell me about the Absolute Capital Opportunities Fund, ticker symbol, CAPOX. What is the fund's mandate?

Joel: We're looking to put together a fund with the goal of generating capital appreciation, but the secondary goal is to have less risk than unhedged equities have historically produced. We think about that by having a fundamentally driven portfolio of stocks and wrapping a hedging program around it. In our opinion, this has the opportunity to produce a payoff profile that goes up and down, but can be more attractive than a typical 60/40 allocation to equities and high-quality fixed income, especially in the historically low interest rate environment we find ourselves in today.