Fund Evaluator:
Horizon Defensive Core Investor (HESGX)
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Best Performing in Tactical Allocation Over the Last Year
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Fund Details
Horizon Defensive Core Investor Overview
Horizon Defensive Core Investor (HESGX) is an actively managed Allocation Tactical Allocation fund. Horizon Investments launched the fund in 2019.
The investment seeks to capture the majority of returns associated with U.S. equity market investments, while mitigating downside risk through the use of a risk overlay strategy (the “Risk Assist® strategy”). The fund will utilize an active management strategy that invests primarily in common stocks of large and mid-cap U.S. companies that exhibit high quality and growth characteristics.
About Horizon Defensive Core Investor (HESGX)
There are 3 members of the management team with an average tenure of 5.51 years: Scott Ladner (2019), Michael Dickson (2019), Clark Allen (2023). Management tenure is more important for actively managed funds than passive index funds.
The fund has 1 primary benchmark: S&P 500 (TR) (1970) index with a weighting of 100%. Horizon Defensive Core Investor has 301 securities in its portfolio. The top 10 holdings constitute 42.2% 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.
Horizon Defensive Core Investor is part of the Allocation global asset class and is within the Allocation fund group. Horizon Defensive Core Investor has 0.6% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 99.8%. There is 0.6% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Horizon Defensive Core Investor has -0.4% of the portfolio in cash.
Assets Under Management
The fund has $468 million in total assets, which is above the $222 million average for the Tactical Allocation 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.
HESGX 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 Horizon Defensive Core Investor expense ratio is high compared to funds in the Tactical Allocation category. Horizon Defensive Core Investor has an expense ratio of 0.93%, which is 47% lower than its category average, making the fund expense ratio grade a A. 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. Horizon Defensive Core Investor has a portfolio turnover rate of 216%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 196% for the Tactical Allocation category.
Recently, in the month of July 2026, Horizon Defensive Core Investor returned 1.0%, which earned it a grade of A, as the Tactical Allocation category had an average return of -0.9%. 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.
Horizon Defensive Core Investor has a trailing yield of 0.34%, which is below the 2.86% category average. The fund normally distributes its income 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.
Horizon Defensive Core Investor Grades
Year to date, the fund has returned 7.6%, 0.8 percentage points worse than the category, which translates into a grade of C. The fund has returned 16.8% over the past year (grade of C), 14.9% over the past three years (grade of A) and 9.2% per year over the past five years (grade of A).
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HESGX 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 |
|
| HESGX Return (NAV) | 1.0% | 3.3% | 16.8% | 14.9% | 9.2% | na |
| HESGX Grade | A | B | C | A | A | na |
| +/- Category | 1.9% | 1.8% | 0.6% | 4.2% | 3.9% | na |
| Tactical Allocation Avg | -0.9% | 1.5% | 16.2% | 10.6% | 5.3% | 6.3% |
| HESGX Tax Cost Ratio | na | na | 5.2% | 1.9% | 1.4% | na |
HESGX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| HESGX Return (NAV) | 7.6% | 9.5% | 22.4% | 23.5% | -18.8% | 27.4% | 21.8% | na | na | na | na |
| HESGX Grade | C | D | A | A | F | A | A | na | na | na | na |
| +/- Category | -0.8% | -3.2% | 13.5% | 12.8% | -5.7% | 14.7% | 11.6% | na | na | na | na |
| Tactical Allocation Avg | 8.4% | 12.7% | 8.9% | 10.8% | -13.1% | 12.7% | 10.2% | 13.5% | -6.2% | 13.2% | 5.6% |
| Risk Measures | |
| Standard Deviation: | 13.7% |
| Total Risk Index: | 1.12 - Above Average |
| Category Risk Index: | 1.34 - High |
| Category Risk Grade: | F (91% Rank) |
| Beta: | 1.19 |
| R-Squared: | 67% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Large-Cap Blend |
| Bond Investment Style: | na |
| Yield: | 0.3% |
| Dividend Distribution: | Annually |
| Cap Gains Distribution: | |
| Total Assets: | $516 Mil |
| Fund Total Assets: | $ 469 Mil |
| Share Class Type: | Inv |
| Portfolio Turnover: | 216% |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 6.6 years | |||
| Average Tenure: 5.5 years | |||
| Managers (Year): Ladner Scott (2019), Dickson Michael (2019), Allen Clark (2023) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 301 |
| % in Top 10 Holdings: | 42.2% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 0.6% |
Portfolio Allocation |
|
| Domestic Stock: | 99.8% |
| Foreign Stock: | 0.6% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | -0.1% |
| Cash: | -0.4% |
Purchase Information
| Fund Family: | Horizon Investments |
| Phone Number: | 855-754-7932 |
| Website: | www.horizonmutualfunds.com |
| Status: | Open |
| Inception Date: | December 27, 2019 |
| Min. Initial Purchase: | $2,500 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | 0.10% |
Expenses and Fees | |
| Expense Ratio (%): | 0.93% ( Rating : High ) |
| Category Average Expense Ratio (%): | 1.76% |
| Share Class: | Horizon Defensive Core Investor |
| Min. Subsequent Purchase: | $ 250 |
| Min. Subsequent IRA Purchase: | $ 0 |
