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Dr. David Snowball of the Mutual Fund Observer assesses the performance of Hilton's Tactical Income Fund.

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Hilton Capital Income Fund Receives Recognition by Independent Mutual Fund Observer

Dr. David Snowball of the Mutual Fund Observer examines the performance of Hilton's Tactical Income Fund.

May 14, 2019     3 minute read

Since its founding in 2001, Hilton Capital Management has strived to develop investment strategies to reduce volatility and help clients reach their investment goals. Its founding strategy, Tactical Income Strategy, seeks capital preservation with an emphasis on income generation. Hilton Capital launched the Tactical Income Mutual Fund in 2013 and it recently caught the attention of Dr. David Snowball of the Mutual Fund Observer (MFO), an independent, nonprofit fund researcher with a mission of examining and developing profiles on mutual funds in order to empower investors to make educated decisions.  

Impressed by its performance since its inception, Dr. Snowball made Hilton’s Tactical Income the topic of May’s edition of MFO’s “Elevator Talk.”

Read Dr. Snowball’s full piece on Hilton’s Tactical income here.  


Dr. Snowball begins his assessment of the fund by admitting his usual skepticism of Tactical Allocation funds, like Hilton’s, due to their tendency to underperform compared to other investments such as a simpler 60/40 index. This admission, though, serves only to highlight his assertion that, “Hilton Tactical Allocation appears to be a singular exception to that rule.”
 

His confidence in the fund, which he goes on to detail in his MFO piece, stems from careful analysis of its composition and of its key performance indicators as they compare to other funds. He points out the fund as having higher annual returns and lower volatility than those in its Lipper and Morningstar peer groups. [1]

 

[1] Lipper Peer Group : Flexible Portfolio. Morningstar Category: Tactical Allocation

An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing. A Fund’s prospectus and summary prospectus contain this and other information about the Direxion Funds. To obtain a prospectus and summary prospectus call 646-762-4267 or visit our website at direxioninvestments.com. A Fund’s prospectus and summary prospectus should be read carefully before investing.

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Risks of the Fund – Mutual fund investing involves risk. Principal loss is possible. The Fund’s strategy of investing in dividend-paying stocks involves the risk that such stocks may fall out favor with investors and under perform the market. In addition, there is the possibility that such companies could reduce or eliminate the payment of dividends in the future or the anticipated acceleration of dividends could not occur. The Fund may invest in foreign securities and ADR’s which involve political, economic and currency risks, greater volatility and differences in accounting methods. Medium- and small- capitalization companies tend to have limited liquidity and greater price volatility than large-capitalization companies.
Investments in REIT securities involve risks such as declines in the value of real estate and increased susceptibility to adverse economic regulatory expenses. The fund may invest in MLP’s which can be negatively influenced when interest rates rise. These investments also entail many of the general tax risks of investing in a partnership. There is always the risk that an MLP will fail to qualify for favorable tax treatments. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investment by the Fund in lower-rated and nonrated securities presents a greater risk of loss to principal and interest than higher-rated securities. Income from municipal securities may be subject to state and local taxes and a portion of income may be subject to the federal alternative minimum tax for certain investors. Federal income tax rules will apply to any capital gains distributions. Because the funds invest in ETFs and ETN’s, they are subject to additional risks that do not apply to conventional mutual funds. ETF risk includes the risks that the market price of the shares may trade at a discount to its net asset value (“NAV”), an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact a Fund’s ability to sell its shares. ETN risk includes the risks that the value of an ETN may be influenced by time to maturity, level of supply and demand for the ETN, volatility and lack of liquidity in the underlying securities’ markets, changes in the applicable interest rates, changes in the issuer’s credit rating and economic, legal, political or geographic events that affect the referenced index. In addition, ETNs are unsecured debt of the issuer and would lose value if the issuer goes bankrupt. Please read the prospectus.

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