Arin’s Fixed Income Hedge attempts to limit or reduce the amount of loss a fixed income investor will experience in the event of a decline in the market value of your fixed income/bond portfolio. The Fixed Income Hedge does and will have Basis Risk. Basis risk is the lack of perfect correlation or dollar for dollar offset between your fixed income portfolio and Arin’s hedging portfolio. We try to measure the amount of net market exposure across your portfolio but you realize we may not have real time, complete information for each fixed income holding. Further, even if we did have perfect clarity, we would find it very difficult to match losses with gains across all market environments. We tend to use options, credit default swaps, and short sales as the investment tools to help us manage the interest rate and credit risk under this strategy. Our fee for Fixed Income Hedge is 30 basis points or 0.30% per annum.
Please see Form ADV for More Complete and Important Disclosure
