Fund Evaluator:

Catalyst/Millburn Hedge Strategy I Overview

Catalyst/Millburn Hedge Strategy I (MBXIX) is an actively managed Alternative Multi-Asset Overlay fund. Catalyst Mutual Funds launched the fund in 2015.

The investment seeks long-term capital appreciation. The fund seeks to achieve its investment objective by investing in a portfolio comprised of (i) futures contracts, forward and spot contracts, and/or options on futures contracts on or related to the following sectors: currencies, interest rate instruments, stock indices, metals, energy and agricultural commodities, (the "Futures Component") and (ii) equity ETFs, common stocks (the "Equity Component"), intended to capitalize on the non-correlated, long term historical performance of the equities and managed futures asset classes.

About Catalyst/Millburn Hedge Strategy I (MBXIX)

There are 4 members of the management team with an average tenure of 8.53 years: Michael Soss (2024), Barry Goodman (2015), Harvey Beker (2015), Grant Smith (2015). 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 ICE BofA US 3M Trsy Bill TR USD index with a weighting of 100%. Catalyst/Millburn Hedge Strategy I has 169 securities in its portfolio. The top 10 holdings constitute 73.5% 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.

Catalyst/Millburn Hedge Strategy I is part of the Alternative Strategies global asset class and is within the Alternative fund group. Catalyst/Millburn Hedge Strategy I has 12.3% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 36.3%. There is 12.3% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 17.4% (17.4% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Catalyst/Millburn Hedge Strategy I has 16.8% of the portfolio in cash.

Assets Under Management

The fund has $9 billion in total assets, which is above the $369 million average for the Multi-Asset Overlay 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.

MBXIX 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 Catalyst/Millburn Hedge Strategy I expense ratio is high compared to funds in the Multi-Asset Overlay category. Catalyst/Millburn Hedge Strategy I has an expense ratio of 2.00%, which is 43% 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. Catalyst/Millburn Hedge Strategy I has a portfolio turnover rate of 19%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 155% for the Multi-Asset Overlay category.

Recently, in the month of July 2026, Catalyst/Millburn Hedge Strategy I returned -2.0%, which earned it a grade of F, as the Multi-Asset Overlay category had an average return of 0.1%. 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.

Catalyst/Millburn Hedge Strategy I has a trailing yield of 0.00%, which is below the 0.87% category average. The fund normally distributes its income annually 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.

Catalyst/Millburn Hedge Strategy I Grades

Year to date, the fund has returned 13.7%, 5.5 percentage points better than the category, which translates into a grade of A. The fund has returned 16.4% over the past year (grade of F), 10.4% over the past three years (grade of B) and 7.5% per year over the past five years (grade of A) and 7.8% per year over the past 10 years (grade of A).

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