Fund Evaluator:
Rational Equity Armor Fund A (HDCAX)
Follow This Fund
Best Performing in Equity Hedged Over the Last Year
| 14.3% | Parametric Volatil Risk Prm-Defensv I (EIVPX) |
| 13.7% | Cavanal Hill Hedged Equity Income Inv (APLIX) |
| 13.5% | Fidelity Advisor Hedged Equity Z (FEQZX) |
| 12.5% | T. Rowe Price Hedged Equity Z (PZHEX) |
| 11.6% | MAI Managed Volatility Investor (DIVPX) |
Fund Details
Rational Equity Armor Fund A Overview
Rational Equity Armor Fund A (HDCAX) is an actively managed Nontraditional Equity Equity Hedged fund. Rational Funds launched the fund in 2001.
The investment seeks total return on investment, with dividend income being an important component of that return. The fund will invest at least 80% of its net assets, plus the amount of borrowings for investment purposes, in equity securities. It seeks to achieve its investment objective by investing primarily in the common stock of dividend paying companies included within the S&P 500 Index. The fund may also invest in exchange traded funds (“ETFs”).
About Rational Equity Armor Fund A (HDCAX)
There are 3 members of the management team with an average tenure of 6.64 years: Brian Stutland (2019), Afshin Rahbari (2019), Joseph Tigay (2019). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and Morningstar Mod Con Tgt Risk TR USD index with a weighting of 100%. Rational Equity Armor Fund A has 55 securities in its portfolio. The top 10 holdings constitute 41.2% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Rational Equity Armor Fund A is part of the Equity global asset class and is within the Nontraditional Equity fund group. Rational Equity Armor Fund A has 8.5% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 76.2%. There is 8.5% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 3.3% (3.3% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Rational Equity Armor Fund A has 12.0% of the portfolio in cash.
Assets Under Management
The fund has $9 million in total assets, which is below the $432 million average for the Equity Hedged category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
HDCAX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Rational Equity Armor Fund A expense ratio is high compared to funds in the Equity Hedged category. Rational Equity Armor Fund A has an expense ratio of 1.70%, which is 23% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Rational Equity Armor Fund A has a portfolio turnover rate of 204%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 69% for the Equity Hedged category.
Recently, in the month of July 2026, Rational Equity Armor Fund A returned -1.6%, which earned it a grade of F, as the Equity Hedged category had an average return of -0.0%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Rational Equity Armor Fund A has a trailing yield of 0.15%, which is below the 0.94% category average. The fund normally distributes its income monthly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Rational Equity Armor Fund A Grades
Year to date, the fund has returned 7.0%, 1.6 percentage points better than the category, which translates into a grade of B. The fund has returned 12.7% over the past year (grade of B), 12.9% over the past three years (grade of A) and 5.9% per year over the past five years (grade of C) and 4.6% per year over the past 10 years (grade of F).
For more mutual fund grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.
Otherwise, for more information about Rational Equity Armor Fund A, including its riskiness, submit your email to unlock the rest of the article.
Gain access to exclusive AAII member-only content.
HDCAX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| HDCAX Return (NAV) | -1.6% | 0.7% | 12.7% | 12.9% | 5.9% | 4.6% |
| HDCAX Grade | F | F | B | A | C | F |
| +/- Category | -1.6% | -1.4% | 2.1% | 3.1% | 0.0% | -2.0% |
| Equity Hedged Avg | -0.0% | 2.1% | 10.6% | 9.9% | 5.9% | 6.6% |
| HDCAX Tax Cost Ratio | na | na | 0.1% | 0.0% | 0.1% | 0.8% |
HDCAX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| HDCAX Return (NAV) | 7.0% | 12.4% | 16.5% | 2.6% | -10.9% | 14.1% | 15.7% | 11.0% | -12.2% | -2.2% | 5.9% |
| HDCAX Grade | B | A | B | F | C | B | B | D | F | F | B |
| +/- Category | 1.6% | 3.0% | 4.4% | -9.7% | -1.1% | 2.9% | 4.9% | -3.1% | -9.5% | -11.1% | 1.4% |
| Equity Hedged Avg | 5.4% | 9.4% | 12.2% | 12.3% | -9.8% | 11.3% | 10.8% | 14.1% | -2.7% | 8.9% | 4.5% |
| Risk Measures | |
| Standard Deviation: | 10.5% |
| Total Risk Index: | 0.85 - Average |
| Category Risk Index: | 1.31 - High |
| Category Risk Grade: | F (82% Rank) |
| Beta: | 0.74 |
| R-Squared: | 86% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Large-Cap Blend |
| Bond Investment Style: | na |
| Yield: | 0.2% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $58 Mil |
| Fund Total Assets: | $ 9 Mil |
| Share Class Type: | A |
| Portfolio Turnover: | 204% |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 6.6 years | |||
| Average Tenure: 6.6 years | |||
| Managers (Year): Stutland Brian (2019), Rahbari Afshin (2019), Tigay Joseph (2019) | |||
Portfolio Composition (as of 4/30/26)
| # of Holdings: | 55 |
| % in Top 10 Holdings: | 41.2% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 8.5% |
Portfolio Allocation |
|
| Domestic Stock: | 76.2% |
| Foreign Stock: | 8.5% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 3.3% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 12.0% |
Purchase Information
| Fund Family: | Rational Funds |
| Phone Number: | 800-253-0412 |
| Website: | www.rationalmf.com |
| Status: | Open |
| Inception Date: | February 28, 2001 |
| Min. Initial Purchase: | $1,000 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | No |
| Front Load Maximum: | 4.75% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | 0.25% |
Expenses and Fees | |
| Expense Ratio (%): | 1.70% ( Rating : High ) |
| Category Average Expense Ratio (%): | 1.39% |
| Share Class: | Rational Equity Armor Fund Instl |
| Min. Subsequent Purchase: | $ 50 |
| Min. Subsequent IRA Purchase: | $ 0 |
