DECMX — Decathlon Market Neutral Fund
Data updated: 2024-03-14
DECMX — Decathlon Market Neutral Fund. Long-Short · $1.97M AUM · 5.42% expense ratio · -0.3% 1-yr return. Holdings, fees, performance and SEC filings.
DECMX Fund Overview
DECMX — Decathlon Market Neutral Fund is a US mutual fund managed by Advisors Preferred Trust, categorised as Long-Short. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.
- Type: US mutual fund
- Manager: Advisors Preferred Trust
- Category: Long-Short
- Assets under management: $1.97M
- 1-year return: -0.3%
- Ticker: DECMX
- SEC CIK: 0001556505
- SEC series ID: S000071447
- Share class ID: C000226597
DECMX Investment Objective and Strategy
Decathlon Market Neutral Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Advisors Preferred Trust.
Investment objective
The Fund seeks capital gains.
Principal investment strategy
The Fund?s investment adviser Advisors Preferred, LLC (the ?Adviser?), delegates execution of the Fund?s investment strategy to Beaumont Capital Management, LLC (the ?Sub-Adviser?). The Sub-Adviser seeks to achieve the Fund?s investment objective by investing, long or short, primarily in common stocks and exchange-traded funds (?ETFs?) that each invest primarily in common stocks. The Sub-Adviser invests in individual stocks, baskets of stocks and ETFs that it believes are undervalued or likely to appreciate and sells short individual stocks, baskets of stocks and ETFs that it believes are overvalued or likely to decline. To sell a security short, the Fund borrows the security from a third party and sells it at the then-current market price. The Fund is then obligated to buy the security on a later date so that it can return the security to the lender.
The Sub-Adviser primarily uses a proprietary quantitative ranking system that it refers to as ?machine learning? to make undervalued/overvalued determinations. The proprietary quantitative ranking system forecasts which asset classes or specific securities are expected to have the highest to lowest returns. This is a systematic portfolio management approach using automated formula discovery and rigorous, confidence-based statistical analysis with human oversight. Automated formula discovery is a form of computer program that analyzes raw data, detects patterns and translates those patterns into mathematical formulas that can be used to forecast security prices. Confidence-based statistical analysis is a form of statistical analysis that gives greater weight to factors that are identified as more-certain and less subject to randomness and less subject to produce erroneous predictions.
The human oversight dimension is a common-sense logic check on the output of the mathematical models that is intended to identify and suppress highly improbable results, such as very large negative interest rates. As a supplement to the quantitative system, the Sub-Adviser includes the firm?s best fundamental ideas where appropriate. These are implemented with the same fully hedged long-short exposure approach as used under the quantitative system. These fundamental selections are designed to capture what the Sub-Adviser believes are merely market-perceived short-term economic dislocations that do not represent long-term economic fundamentals. While these investments may also be informed, in part, by the quantitative system they need not be. Examples of the types of fundamental trades the Sub-Adviser may implement are industry pair trades (e.g.
long the stock of one auto manufacturer and short the stock of another auto manufacturer); going long or short a particular company stock while hedging with a short or long position in an index; arbitrages such as capital structure arbitrage (e.g. investing in debt of an issuer while selling short its stock) or merger arbitrage (e.g. investing in the stock of a merger target while selling short the stock of the acquirer). The Sub-Adviser targets portfolio net market exposure of 0% with a range between -10% to 10% and standard deviation of Fund returns of approximately 3% to 8% annualized. Standard deviation is a statistical measure of variation or volatility of returns. Generally, investors prefer returns with a lower standard deviation. The Sub-Adviser re-evaluates undervalued/overvalued status frequently, which results in relatively high portfolio turnover.
The Sub-Adviser may also use long or short positions in stock futures and swaps as a temporary substitute for underlying stocks or to attempt to hedge portfolio risk or manage overall market exposure. The Sub-Adviser reduces futures and swaps exposure as attractive specific stocks and asset class representative ETFs are found. To a lesser extent, the Sub-Adviser may supplement its primary strategy by investing in corporate bonds if they appear to be underpriced; or engaging in capital structure arbitrage, such as investing in debt of an issuer while selling short its stock. Corporate bonds may include securities with credit quality below investment grade (commonly referred to as ?junk bond? credit quality). The Fund defines junk bonds as those rated below Baa3 by Moody?s Investors Service, Inc.
(?Moody?s? or below BBB- by Standard and Poor?s Rating Group (?S&P?) or, if unrated, determined by the Sub-Adviser to be of similar credit quality. To generate additional returns, the Sub-Adviser may also write covered put and call options against the Fund?s short and long positions. The Sub-Adviser may also write uncovered put and calls options as substitutes for outright long or short security positions, when economically more advantageous. The Sub-Adviser compares the erosion of the time value of a written option to the expected returns of the reference security to assess which is more advantageous. For example, if the Sub-Adviser believes a stock is overvalued or likely to decline, it may write an uncovered call option rather than sell the stock short; and if the Sub-Adviser believes a stock is undervalued or likely to appreciate, it may write an uncovered put option rather than buy the stock.
When the Fund writes a call option, the purchaser has the right, but not the obligation, to buy a stock at a specified price (strike price) within a specific time period. When the Fund writes a put option, the purchaser has the right, but not the obligation, to sell a stock at a specified price (strike price) within a specific time period. The Sub-Adviser selects written options that it believes will expire worthless or are likely to decline in value. The Sub-Adviser may adjust option positions based on price movements of the refence stock or to adjust overall market exposure. The Fund?s portfolio may hold securities from issuers of any market capitalization, credit quality, maturity, country, or trading currency.
DECMX Holdings
Top 10 holdings of Decathlon Market Neutral Fund by percentage of net assets, from the fund's latest SEC N-PORT filing.
| Holding | % of net assets |
|---|---|
| Fidelity Institutional Cash Portfolios | 34.86% |
| First American Funds Inc. | 23.03% |
| Spdr Series Trust | 2.56% |
| Ishares Trust | 2.53% |
| Select Sector Spdr Trust | 2.39% |
| Ishares Trust | 2.36% |
| Ishares Trust | 2.34% |
| First Trust Exchange-Traded Fund II | 2.33% |
| Ishares Trust | 2.33% |
| Ishares Trust | 2.28% |
DECMX Portfolio Allocation
Asset-class allocation of Decathlon Market Neutral Fund by percentage of net assets, from the latest SEC N-PORT filing.
| Asset class | Allocation |
|---|---|
| Cash & Equivalents | 57.9% |
| Equity | 57.2% |
| Fixed Income | 0.4% |
DECMX Performance
Total returns for DECMX (as of 2026-10-01), from SEC filings.
| Period | Total return |
|---|---|
| 1 year | -0.3% |
| 3 years (annualised) | -4.3% |
DECMX Risk Information
Risk metrics for DECMX, derived from monthly returns in SEC filings.
- 1-year volatility (annualised): 7.7%
DECMX Costs and Fees
DECMX costs about $542 per $10,000 invested per year in fund expenses.
- Net expense ratio: 5.42%
- Gross expense ratio: 5.42%
- Portfolio turnover: 354%
- Brokerage commissions: 20.26 bps of average net assets (SEC N-CEN)
DECMX Cashflows
Over the 12 months to 2023-12, Decathlon Market Neutral Fund had net inflows of $738.67K, from monthly SEC N-PORT filings.
| Month | Net flow |
|---|---|
| 2023-12 | $107.11K |
| 2023-11 | $98.89K |
| 2023-10 | $14.13K |
| 2023-09 | $2.08K |
| 2023-08 | $9.11K |
| 2023-07 | $21.43K |
DECMX Debt Constituents
Largest debt holdings of Decathlon Market Neutral Fund by percentage of net assets, from the latest SEC N-PORT filing.
| Debt holding | % of net assets |
|---|---|
| iHeartCommunications Inc | 0.40% |
DECMX Prospectus and SEC Filings
Official Decathlon Market Neutral Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.
- Prospectus (485BPOS) — filed 2023-04-28
- Prospectus supplement (497) — filed 2023-11-03
- Prospectus supplement (497) — filed 2022-08-01
- Portfolio holdings (N-PORT) — filed 2024-02-07
- Portfolio holdings (N-PORT) — filed 2023-11-09
- Portfolio holdings (N-PORT) — filed 2023-08-09
- Annual census (N-CEN) — filed 2024-03-14
- Annual census (N-CEN) — filed 2023-03-10
Related Funds
Other Long-Short 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.