Nationwide Long/Short Equity Fund
Data updated: 2020-09-23
C000186072 — Nationwide Long/Short Equity Fund. Latin America Value Equity · $19.63M AUM · 3.03% expense ratio. Holdings, fees, performance and SEC filings.
C000186072 Fund Overview
Nationwide Long/Short Equity Fund is a US mutual fund managed by Nationwide Mutual Funds, categorised as Latin America Value Equity. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.
- Type: US mutual fund
- Manager: Nationwide Mutual Funds
- Category: Latin America Value Equity
- Assets under management: $19.63M
- 1-year return: -0.9%
- SEC CIK: 0001048702
- SEC series ID: S000057698
- Share class ID: C000186072
C000186072 Investment Objective and Strategy
Nationwide Long/Short Equity Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Nationwide Mutual Funds.
Investment objective
The Nationwide Long/Short Equity Fund seeks long-term capital appreciation.
Principal investment strategy
The Fund employs a long/short investment strategy to attempt to achieve capital appreciation and manage risk by purchasing equity securities believed by the Funds subadviser to be undervalued and selling short equity securities believed by the subadviser to be overvalued. A short sale is the sale by the Fund of a security which it does not own but must borrow to complete the sale, in anticipation of purchasing the same security at a later date at a lower price. Under normal market conditions, the Fund invests at least 80% of its net assets in equity securities. These securities are primarily traded on U.S. securities exchanges. The Fund may invest up to 20% of its total assets in securities of foreign issuers, including issuers in emerging market countries. Emerging market countries typically are developing and low- or middle-income countries, and include certain countries located in Latin America, Asia, Africa, the Middle East and Eastern Europe.
For purposes of this 20% limitation, total assets includes the proceeds of securities sold short. Additionally, the Fund may invest in other investment companies, including exchange-traded funds (ETFs), to the extent permitted by law, primarily in connection with the Funds short portfolio, as further described below. The Funds long portfolios (i.e., those securities that the Fund owns outright) core strategy is to invest in a combination of large-cap stocks of companies that the subadviser believes are financially sound and which have high dividend yields (i.e., value stocks), and large cap stocks of companies that the subadviser believes have higher than average growth earnings (i.e., growth stocks). The Funds overall strategy seeks to deliver competitive risk-adjusted returns, or alpha, a risk adjusted measure of an investments performance.
The aggregate value of the Funds long portfolio will generally exceed the aggregate value of the Funds short portfolio; however, the Fund seeks to maintain at least some short exposure at all times. The net long exposure of the Fund (gross long exposures minus gross short exposures) is usually expected to be between 50% and 100% (i.e., less than 50% of the Funds net assets). The Funds use of short sales will create investment leverage in the Funds portfolio. It is possible that the Fund will lose money both on its long investments and its short investments at the same time. To the extent the Fund uses the proceeds from short sales to purchase securities for the long portfolio, the degree of leverage may be magnified. In seeking growth stocks for the Funds long portfolio, the subadviser employs a bottom-up investment process that focuses on superior stock selection, investing in stocks based on their individual attributes, regardless of broader national or economic factors.
The subadviser then utilizes a three-component process that includes top-down macroeconomic analysis, fundamental research and technical analysis. Top-down analysis involves first looking at trends in the general economy, followed by selecting industries, and then companies within such industries, that may benefit from those trends. With respect to value stocks, the subadviser seeks financially stable, high dividend-yielding companies, and screens from a universe of all stocks traded on U.S. exchanges. Factors used to screen these companies include, but are not limited to, market capitalization, cash flow, financial leverage and price volatility. The remaining companies are then further refined to include those companies with the highest dividend yield, subject to diversification among industry sectors as appropriate to manage risk.
The subadviser may sell a position when it no longer qualifies for purchase under its buy discipline. The Funds short positions (i.e., those securities that the Fund has sold short) generally range between 1% and 50% of the value of the Funds net assets. The subadvisers short investment approach involves a disciplined, methodical search for overvalued companies. The subadviser generally applies a proprietary screening process which includes criteria such as deteriorating working capital, decelerating sales growth, negative sales surprises, and negative earnings and sales estimate revisions by Wall Street analysts. Once the subadviser has established companies which meet its initial criteria, the subadviser next scrutinizes the quality of earnings, issuer proxy statements (background of directors and management, director or accountant resignations, litigation and related transactions), the balance sheet and footnotes (accounts receivable, inventories, other current assets, reserve levels, changes in amortization or depreciation schedules and off-balance sheet liabilities), and the income and cash-flow statements (margin trends, one-time gains or losses and tax rates).
Additionally, the subadviser considers the time horizon likely to be required for positions to become profitable. Accordingly, the subadviser seeks to identify so-called catalysts, i.e., particular anticipated events or circumstances that are likely to accelerate the time frame in which the key flaw in the issuer will be reflected in its stock price. By emphasizing catalysts, the subadviser seeks to avoid potential short situations that would require extensive holding periods and their attendant increased costs and risks. The subadviser seeks to reduce, cover or close positions if the analytical basis for the original investment decision has become questionable or if there are other developments that create a lack of continuing analytic confidence in the position. In addition to selling individual securities short based on whether the subadviser believes them to be overvalued, the subadviser may also sell shares of ETFs short in response to broader stock market movements.
C000186072 Performance
Total returns for C000186072 (as of 2026-10-01), from SEC filings.
| Period | Total return |
|---|---|
| 1 year | -0.9% |
C000186072 Risk Information
Risk metrics for C000186072, derived from monthly returns in SEC filings.
- 1-year volatility (annualised): 14.8%
C000186072 Costs and Fees
C000186072 costs about $303 per $10,000 invested per year in fund expenses.
- Net expense ratio: 3.03%
- Gross expense ratio: 3.59%
- Portfolio turnover: 26%
- Brokerage commissions: 2.49 bps of average net assets (SEC N-CEN)
C000186072 Cashflows
Over the 12 months to 2020-07, Nationwide Long/Short Equity Fund had net outflows of $2.73M, from monthly SEC N-PORT filings.
| Month | Net flow |
|---|---|
| 2020-07 | −$489.51K |
| 2020-06 | −$408.48K |
| 2020-05 | −$50.75K |
| 2020-04 | −$219.80K |
| 2020-03 | −$321.96K |
| 2020-02 | −$1.00M |
C000186072 Debt Constituents
No individual debt constituents are reported in Nationwide Long/Short Equity Fund's latest SEC N-PORT filing.
C000186072 Prospectus and SEC Filings
Official Nationwide Long/Short Equity Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.
- Prospectus (485BPOS) — filed 2020-03-19
- Prospectus (485BPOS) — filed 2019-03-19
- Prospectus (485BPOS) — filed 2018-08-31
- Portfolio holdings (N-PORT) — filed 2020-09-23
- Portfolio holdings (N-PORT) — filed 2020-06-24
- Portfolio holdings (N-PORT) — filed 2020-03-25
- Annual census (N-CEN) — filed 2020-01-10
- Annual census, amended (N-CEN/A) — filed 2020-07-29
Related Funds
Other Latin America Value 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.