EASAX — EAS Crow Point Alternatives Fund

Data updated: 2020-08-31

EASAX — EAS Crow Point Alternatives Fund. Capital Appreciation / Growth Allocation · $22.33M AUM. Holdings, fees, performance and SEC filings.

EASAX Fund Overview

EASAX — EAS Crow Point Alternatives Fund is a US mutual fund managed by 360 Funds, categorised as Capital Appreciation / Growth Allocation. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

Type: US mutual fund
Manager: 360 Funds
Category: Capital Appreciation / Growth Allocation
Assets under management: $22.33M
Ticker: EASAX
SEC CIK: 0001319067
SEC series ID: S000058837
Share class ID: C000192971

EASAX Investment Objective and Strategy

EAS Crow Point Alternatives Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by 360 Funds.

Investment objective

The investment objective of the EAS Crow Point Alternatives Fund (the Fund) is preservation and growth of capital.

Principal investment strategy

"The Advisers investment philosophy centers on the preservation and growth of capital through both good and bad markets. The Adviser believes that for most shareholders, investment success is about growing capital over time while protecting it at all times, not about beating a market index which can frequently involve losses while still meeting the objective. Thus, the Adviser follows an absolute return approach in managing the Fund, as defined below. In executing its strategy, the Adviser attempts to generate consistent, positive returns regardless of market conditions by allocating the Funds investments among multiple alternative investment styles. Alternative investment styles generally exhibit low volatility and relatively low long-term market correlation. Low correlation refers to the extent to which the performance of an investment moves in synch with the broader equity and bond markets.

The goal of the Adviser in managing the Funds assets is to construct a portfolio of assets that exhibit low correlation with and downside capture of the stock market. A correlation measure of 1 demonstrates perfect positive correlation; a correlation measure of 0 demonstrates no correlation and a correlation measure of -1 demonstrates a perfect negative correlation. Many mutual funds are managed according to a relative return approach (i.e., they aim to perform better than their mutual fund category, their mutual fund peers or the general market as a whole). By contrast, absolute return refers to the strategy of seeking positive investment performance regardless of overall or broader market performance. Absolute return strategies, which the Adviser believes will be less volatile, differ from relative return because they are concerned with the return of a particular investment and do not compare it to any other measure or benchmark.

The Fund pursues its absolute return objective by tactically allocating its capital among multiple potential alternative investment classes, including investments in private funds. The Fund may, generally, pursue investments among the following alternative investment classes or strategies: Long-Short Equity, Long-Short Credit, Asset Backed Securities, Arbitrage, Commodities, Convertibles, Floating Rate Debt, Currencies, Emerging Market Bonds, Emerging Market Equities, High Yield, Managed Futures, and Real Estate (primarily through real estate investment trusts (REITs)). A general overview of the Funds investment classes is illustrated below. Allocations among the various investment classes or strategies will vary: image=""txmdex992.jpg"" ""(PIE CHART)"" Cash Arbitrage Commodities Currencies Convertibles Asset Backed Securities Emerging Markets Managed Futures Real Estate Long/Short Credit The Fund may invest directly or through other mutual funds, exchange traded funds (ETFs), closed-end funds and private funds, including hedge funds (Underlying Funds) across these alternative investment classes.

Investments in private funds, including hedge funds, will be limited to no more than 15% of the Funds net assets. An ETF is an investment company that typically seeks to track the performance of an index by holding in its portfolio either the contents of the index or a representative sample of the securities in the index. The Adviser may invest a portion of the Funds assets in other mutual funds that are also advised by the Adviser. The Adviser will adjust the asset allocation among each alternative investment class based on its assessment of market conditions and investment opportunities. Depending on market conditions, the core of the Funds investments will ordinarily be in long-short equity and long-short credit strategies managed by the Adviser. The Adviser also expects to utilize other alternative asset classes to round out portfolio allocations, some of which may also be managed by the Adviser, others may be managed by a Sub-adviser.

Whether these asset classes are managed by the Adviser or not, they will generally show lower correlations to broader market indices to seek to reduce the Funds volatility compared to the markets in general. The Adviser or a Sub-adviser will execute a portion of the Funds strategy by investing in a wholly owned and controlled subsidiary (the Subsidiary). The Subsidiary invests the majority of its assets in commodities, commodity-linked derivative investments and other futures contracts. The Subsidiary is subject to the same investment restrictions as the Fund, when viewed on a consolidated basis. To assist in assessing the attractiveness of each of the alternative asset classes, the Adviser utilizes a proprietary quantitative model that analyzes various technical characteristics of each class and provides a risk score on the investment prospects of each.

Specifically, the quantitative model examines certain data to forecast which investment securities, asset classes, or strategies are likely to underperform or outperform cash. The Adviser may allocate to cash or cash equivalents during periods of market duress. The Adviser does not employ market timing, but rather a disciplined, repeatable process with a focus on low volatility, downside protection and portfolio consistency. The Adviser believes the application of a disciplined, quantitative approach to portfolio management and asset allocation helps the Advisers execution in its goal of generating positive absolute returns over time. The Fund is designed to exhibit low volatility, low correlation and low downside capture to the broad markets and to provide an effective absolute return alternative to long-only equity strategies and traditional fixed-income strategies.

Broad markets refer generally to the commonly recognized securities exchanges and the indices that track the performance of those exchanges. Indices commonly used to track these markets include the Standard & Poors 500 Index and the Barclays Capital Aggregate Bond Index, respectively. As the Fund pursues a multi-strategy approach and utilizes a blend of alternative investment styles, the HFRI Fund-of-Funds Conservative Index is the most relevant index to which the Fund should be benchmarked. The Fund may invest in securities directly, or through other investment companies, including alternative (a.k.a. hedged) mutual funds, ETFs, closed end funds and private funds. Hedged mutual funds are those mutual funds that employ a non-traditional investment style sometimes found in the hedge fund investment world.

For example, they may use a limited amount of leverage, sell securities short, use derivatives, such as swaps, and hold cash positions as they deem appropriate to adjust to market cycles. The Fund may utilize derivatives such as equity and index options in order to selectively hedge individual stock exposure. Given the broader investment flexibility, hedged mutual funds can adjust their net long or short equity exposure much more liberally than traditional long-only mutual funds. The Hedged mutual funds may pursue a variety of specific investment styles or hedge fund-like strategies that fall under the aforementioned alternative investment classes. By combining multiple alternative asset classes in the Fund, the Adviser pursues a diversified investment program designed with the goal of delivering low market volatility, low market beta and relatively low market correlation.

The Fund aims to isolate and extract the key benefits that may be found, but not necessarily exclusively, in hedge fund investing (absolute return, low volatility, low modest beta, relatively low market correlation, investment flexibility, hedging capability, etc.) by selectively incorporating individual securities or investments, mutual funds, ETFs, closed-end funds and private funds into a mutual fund investment vehicle. Investment Process: In its portfolio construction process, the Adviser utilizes a rules-based, disciplined investment approach that begins with a quantitative evaluation of individual securities and selected alternative investment classes. Using the same quantitative approach, the Adviser then utilizes its proprietary quantitative investment tools to construct an expected return forecast for securities and asset classes.

By employing a combined quantitative and qualitative process, the Adviser applies a tactical, integrated approach in the investment process for the Fund. This covers all stages of portfolio construction, including forming strategic allocation, identifying new potential investments within the allocation parameters and determining whether such investments meet the Advisers standards and requirements set forth in its selection process. The Funds market capitalization target range for global equities is $250 million to $300 billion. The Funds investments in fixed income securities are not limited by maturity or credit quality. The desired result is a disciplined, repeatable investment process that aims for effective market navigation, portfolio consistency and return stability, as illustrated in the following chart.

image=""txmdex993.jpg"" ""(FLOW CHART)"" Rebalance/Adjust Macro Allocations Conduct Rigorous Bottom-Up Analysis and Investment Selection Monitor Asset Classes and Assess Risk Levels"

EASAX Costs and Fees

EASAX costs about $281 per $10,000 invested per year in fund expenses.

Net expense ratio: 2.81%
Gross expense ratio: 3.20%
Portfolio turnover: 147%
Brokerage commissions: 33.21 bps of average net assets (SEC N-CEN)

EASAX Cashflows

Over the 12 months to 2020-06, EAS Crow Point Alternatives Fund had net outflows of $3.74M, from monthly SEC N-PORT filings.

Month	Net flow
2020-06	−$373.97K
2020-05	−$920.94K
2020-04	$232.15K
2020-03	−$1.22M
2020-02	−$1.23M
2020-01	−$225.03K

EASAX Debt Constituents

No individual debt constituents are reported in EAS Crow Point Alternatives Fund's latest SEC N-PORT filing.

EASAX Prospectus and SEC Filings

Official EAS Crow Point Alternatives Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

Related Funds

Other Capital Appreciation / Growth Allocation 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.