Cavalier Funds

Hedged High Income


Cavalier Hedged High Income Fund - Monthly Commentary - July 2019:

The Cavalier Hedged High Income Fund (CHIIX) maintained high yield exposure in July and kept off the hedged portion of the Fund’s high yield risk. The Fund continues to hold core high yield of about 70% with SPDR High Yield ETF (JNK) at 20% and Goldman Sachs Access High Yield Corporate Bond ETF (GHYB) approximately 50% of the portfolio. The Fund also continues to hold several US Large Cap Growth Equities, making up approximately 8% of the portfolio. The Fund also holds approximately 12% of a floating rate preferred REIT (Preferred Apartment Communities Inc.) with a current coupon of 6%, priced to par at the beginning and end of the month.  Overall, CHIIX closed the month up +0.18% MTD, slightly trailing the ICE Bank of America U.S. High Yield Index Benchmark, which closed the month at +0.55% MTD.

The performance information quoted here represents past performance, which is not a guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain Fund performance information current to the most recent month-end, please call 1-800-773-3863, or visit


An investment in the Cavalier Hedge High Income Fund is subject to investment risks, including the possible loss of some or the entire principal amount invested. There can be no assurance that the Cavalier Hedged High Income Fund will be successful in meeting its investment objective. Investment in the Cavalier Hedged High Income Fund is also subject to the following risks: Closed-End Fund Risk, Control of Portfolio Funds Risk, Corporate Debt Securities Risk, Cybersecurity Risk, Derivatives Risk, ETFs Risk, Fixed Income Risk, Foreign Securities and Emerging Markets Risk, Fund of Funds Risk, High-Yield Risk, Interest Rate Risk, Investment Advisor Risk, Leverage Risk, Market Risk, MLPs Risk, Mortgage-Back Securities Risk, Portfolio Turnover Risk, REIT Risk, Risks from Purchasing Options, Risks from Writing Options, and Short Sales Risk. The Cavalier Hedged Income Fund may invest in foreign securities and emerging markets, and these investments have risks that differ significantly from those associated with domestic securities. The use of leverage may exaggerate changes in a portfolio fund’s share price and the return on its investments and accordingly, the value of the Cavalier Hedged High Income Fund’s investments in portfolio funds may be more volatile than all other risks, including the risk of loss of an investment, tend to be compounded or magnified. The Cavalier Hedged High Income Fund and Portfolio Funds may invest in junk bonds, including bonds of issuers in default, and other fixed income securities that are rated below investment grade. More information about these risks can be found in the Cavalier Hedged High Income Fund’s prospectus. 

Investors should consider the investment objective, management fees, risks, charges and expenses of the Funds carefully before investing or sending money. The Prospectus contains this and other information about the Funds. For a current Prospectus, call 800-773-3863. Please read the Prospectus carefully before you invest. Current and future holdings are subject to change and risk.

The Cavalier Funds are distributed by Capital Investment Group, Inc., Member FINRA/SIPC, 100 E Six Forks Rd, Suite 200, Raleigh, NC, 27609, (800) 773-3863. There is no affiliation between Cavalier Investments, the Investment Advisor to the Fund, including its principals, and Capital Investment Group, Inc.