Fund Evaluator:
Rational/RGN Hedged Equity A (RNEAX)
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Best Performing in Long-Short Equity Over the Last Year
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Fund Details
Rational/RGN Hedged Equity A Overview
Rational/RGN Hedged Equity A (RNEAX) is an actively managed Nontraditional Equity Long-Short Equity fund. Rational Funds launched the fund in 2024.
The investment seeks long-term capital appreciation. The fund aims to provide a higher return, lower-risk alternative with minimal tracking error to a long-only S&P 500 Index. It aims to achieve its investment objective by combining two complementary investment strategies: 1) a long-only equity portfolio designed to approximate the performance of the S&P 500 Index, and 2) an overlay component designed to reduce risk and enhance return that makes investments in futures, forwards, options contracts and foreign currency via Foreign Exchange. The fund is non-diversified.
About Rational/RGN Hedged Equity A (RNEAX)
There are 4 members of the management team with an average tenure of 1.84 years: Roy Niederhoffer (2024), Paul Shen (2024), Brian Duda (2024), Karolina Stanislawski (2024). 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%. Rational/RGN Hedged Equity A has 36 securities in its portfolio. The top 10 holdings constitute 95.3% of the fund’s assets. The fund meets the SEC requirement of being classified as a nondiversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Rational/RGN Hedged Equity A is part of the Equity global asset class and is within the Nontraditional Equity fund group. Rational/RGN Hedged Equity A has 0.4% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 88.8%. There is 0.4% 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). Rational/RGN Hedged Equity A has 10.7% of the portfolio in cash.
Assets Under Management
The fund has $644 million in total assets, which is below the $352 million average for the Long-Short Equity 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.
RNEAX 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/RGN Hedged Equity A expense ratio is high compared to funds in the Long-Short Equity category. Rational/RGN Hedged Equity A has an expense ratio of 2.30%, which is 5% 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/RGN Hedged Equity A has a portfolio turnover rate of 4%, indicating that holds its assets around 0.3 years. By way of comparison, the average portfolio turnover is 287% for the Long-Short Equity category.
Recently, in the month of July 2026, Rational/RGN Hedged Equity A returned -1.1%, which earned it a grade of F, as the Long-Short Equity category had an average return of 2.6%. 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/RGN Hedged Equity A has a trailing yield of 0.00%, which is below the 1.15% 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.
Rational/RGN Hedged Equity A Grades
Year to date, the fund has returned 14.0%, 6.6 percentage points better than the category, which translates into a grade of A. The fund has returned 26.0% over the past year (grade of A).
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RNEAX 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 |
|
| RNEAX Return (NAV) | -1.1% | -0.2% | 26.0% | na | na | na |
| RNEAX Grade | F | F | A | na | na | na |
| +/- Category | -3.7% | -3.7% | 11.9% | na | na | na |
| Long-Short Equity Avg | 2.6% | 3.6% | 14.1% | 11.9% | 8.8% | 7.9% |
| RNEAX Tax Cost Ratio | na | na | 0.4% | na | na | na |
RNEAX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| RNEAX Return (NAV) | 14.0% | 14.8% | na | na | na | na | na | na | na | na | na |
| RNEAX Grade | A | B | na | na | na | na | na | na | na | na | na |
| +/- Category | 6.6% | 3.4% | na | na | na | na | na | na | na | na | na |
| Long-Short Equity Avg | 7.5% | 11.4% | 13.4% | 13.0% | -3.8% | 21.2% | 5.8% | 13.3% | -7.9% | 11.6% | 7.3% |
| Risk Measures | |
| Standard Deviation: | na |
| Total Risk Index: | na |
| Category Risk Index: | na |
| Category Risk Grade: | |
| Beta: | na |
| R-Squared: | na |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Large-Cap Blend |
| Bond Investment Style: | na |
| Yield: | 0.0% |
| Dividend Distribution: | Annually |
| Cap Gains Distribution: | Annually |
| Total Assets: | $43 Mil |
| Fund Total Assets: | $ 1 Mil |
| Share Class Type: | A |
| Portfolio Turnover: | 4% |
Management Team
| Number of Managers: 4 | |||
| Longest Tenure: 1.8 years | |||
| Average Tenure: 1.8 years | |||
| Managers (Year): Niederhoffer Roy (2024), Shen Paul (2024), Duda Brian (2024), Stanislawski Karolina (2024) | |||
Portfolio Composition (as of 4/30/26)
| # of Holdings: | 36 |
| % in Top 10 Holdings: | 95.3% |
| Fund is Non-Diversified: | Yes |
| % in Foreign Issues: | 0.4% |
Portfolio Allocation |
|
| Domestic Stock: | 88.8% |
| Foreign Stock: | 0.4% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.1% |
| Cash: | 10.7% |
Purchase Information
| Fund Family: | Rational Funds |
| Phone Number: | 800-253-0412 |
| Website: | www.rationalmf.com |
| Status: | Open |
| Inception Date: | September 27, 2024 |
| Min. Initial Purchase: | $1,000 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | No |
| Front Load Maximum: | 5.75% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | 0.25% |
Expenses and Fees | |
| Expense Ratio (%): | 2.30% ( Rating : High ) |
| Category Average Expense Ratio (%): | 2.19% |
| Share Class: | Rational/RGN Hedged Equity Institutional |
| Min. Subsequent Purchase: | $ 50 |
| Min. Subsequent IRA Purchase: | $ 0 |
