ACDHX — AC Alternatives Disciplined Long Short Fund

Data updated: 2020-02-25

ACDHX — AC Alternatives Disciplined Long Short Fund. Developed ex-US Growth Equity · $29.70M AUM. Holdings, fees, performance and SEC filings.

ACDHX Fund Overview

ACDHX — AC Alternatives Disciplined Long Short Fund is a US mutual fund managed by American Century Quantitative Equity Funds, Inc., categorised as Developed ex-US Growth Equity. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

ACDHX Investment Objective and Strategy

AC Alternatives Disciplined Long Short Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by American Century Quantitative Equity Funds, Inc..

Investment objective

The fund seeks long-term capital growth.

Principal investment strategy

The portfolio managers initially identify an eligible universe of growth stocks and then use quantitative models in a two-step process to construct the portfolio of equity securities (principally common stocks) for the fund. In the first step, the managers rank stocks, primarily large and mid capitalization, publicly traded U.S. companies with a market capitalization greater than $2 billion, from most to least attractive by using a quantitative model that combines measures that the advisor believes are predictive of an individual stocks performance, including valuation, quality, growth, and sentiment. In the second step, the managers use a quantitative model to build a portfolio that provides the optimal balance between risk and expected return. The portfolio managers buy, or take long positions in, equity securities that they have identified as the most attractive and take short positions in equity securities that they have identified as the least attractive using the multi-factor quantitative model described above.

A long position arises when the fund buys a security outright. A short position arises when the fund sells a security it does not own but has borrowed in anticipation that the market price of the security will decline. If the market price in fact declines, the fund can replace the borrowed security at a lower price and capture the value represented by the difference between the higher sale price and the lower replacement price. The proceeds from the securities sold short may be used to fund the purchase of additional long positions or held as cash or cash equivalents. Using such proceeds to fund the purchase of additional long positions may result in a long exposure greater than 100%. The amount of the long and short positions held by the fund may vary over time depending on prevailing market conditions.

In the aggregate, the fund expects to have net long exposure to the equity markets, which the portfolio managers may adjust over time. Typically, the funds net exposure (long minus short positions) ranges between 30% and 70%. The portfolio managers generally sell a stock from the funds long portfolio when they believe it has become less attractive relative to other opportunities, its risk characteristics outweigh its return opportunity or specific events alter its prospects. The funds use of short selling as a primary investment strategy creates leverage in an attempt to increase returns. The fund may invest a portion of its assets in foreign securities when these securities meet the portfolio managers standards of selection. As part of the funds principal investment strategy, a significant portion of the funds assets may be invested in cash and cash equivalent securities.

The funds cash holdings may vary over time as the portfolio managers adjust the funds net long exposure. The fund may engage in active and frequent trading of portfolio securities to achieve its principal investment strategies. This may cause higher transaction costs and may affect performance. It may also result in the realization and distribution of capital gains.

ACDHX Costs and Fees

ACDHX costs about $306 per $10,000 invested per year in fund expenses.

  • Net expense ratio: 3.06%
  • Gross expense ratio: 3.06%
  • Portfolio turnover: 220%
  • Brokerage commissions: 9.41 bps of average net assets (SEC N-CEN)

ACDHX Cashflows

Over the 12 months to 2019-12, AC Alternatives Disciplined Long Short Fund had net outflows of $21.58M, from monthly SEC N-PORT filings.

MonthNet flow
2019-12−$5.09M
2019-11−$15.45M
2019-10−$1.94M
2019-09$81.91K
2019-08$602.32K
2019-07$214.05K

ACDHX Debt Constituents

No individual debt constituents are reported in AC Alternatives Disciplined Long Short Fund's latest SEC N-PORT filing.

ACDHX Prospectus and SEC Filings

Official AC Alternatives Disciplined Long Short Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

Related Funds

Other Developed ex-US Growth Equity funds tracked on ABC INVEST:

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.