FS Long/Short Equity Fund

A mutual fund designed to seek equity-like returns with lower volatility

Providing individuals differentiated sources of return

FS Long/Short Equity Fund is designed to seek equity-like returns while mitigating downside risk  Downside risk is an estimate of an investment’s potential to suffer a decline in value if the market conditions change, or the amount of loss that could be sustained as a result of the decline. exposure – an attractive profile in a world flush with uncertainty. The fund analyzes large swaths of data to identify the best ideas of hedge fund managers in order to generate differentiated returns for investors.

Growth of $100,000 (12/31/2018–6/30/2020)1

Past performance is not indicative of future results. Source: Bloomberg.

See endnotes for information on the benchmarks referenced above. Returns for time periods greater than one year are annualized. The 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, and current performance may be lower or higher than the performance quoted. Please call 877‑628‑8575 or visit our website at www.fsinvestments.com for performance data current to the most recent month-end.


Why long/short investing?

Long/short investing seeks to balance the often-competing goals of maximizing equity returns while minimizing the downside risk of investing in the stock market.

Balancing investor goals and emotions

Most investors understand there’s a trade-off between an investment’s risk and return. The goal of many fund managers is to generate a strong level of return with a modest level of risk.

Fear of missing out

Desire to stay invested in the market to reach return goals

Fear of loss

Goal to avoid the impact of market downturns

What individuals can learn from institutions

Long/short investing may be unfamiliar to many individual investors – and for good reason. This strategy has historically been used by institutional investors through access to hedge funds and large institutional managers. Long/short investing seeks to reduce market exposure while profiting from stock price changes.

Long strategies

Purchase stocks expected to increase in value

  • Buy stocks that seem underpriced with the hope their value will increase
  • Participate in the performance of rising markets
  • Outperform a benchmark through active security selection

Short strategies

Sell short stocks expected to decrease in value

  • Borrow shares and sell them with the hope of buying them back at a lower price
  • Reduce market exposure to limit losses during large downturns
  • Expand potential universe of investable stocks

Identifying the best ideas of institutional managers

Institutional investors have historically outperformed individual investors thanks in large part to their ability to access high-quality managers as well as a broader selection of investment strategies. Advances in data processing and better insight into how some of the world’s largest managers generate returns have made it possible for individuals to invest like large institutions.

Availability of
information

Large institutional managers must report their holdings each quarter, providing insight into some of their best investing ideas.

Plus

Advances in
technology

Improvements in technology have made processing and drawing insights from immense amounts of data much easier.

Equals

Access for
individuals

The smart use of these innovations increases individual investors’ access to differentiated returns.


FSYIX: Bringing institutional access to individuals

FS Long/Short Equity Fund seeks to provide:

Growth

Seeks to generate equity-like returns

Total return since inception1

5.82%

FSYIX

Downside mitigation

Seeks to maintain modest exposure to market risk

Downside capture Downside capture is a ratio that measures whether and to what extent an investment has underperformed a broad benchmark during periods of market weakness.

34%

to S&P 500


Fund objective

FS Long/Short Equity Fund seeks to provide equity-like returns through long/short investing in U.S. stocks.


Joining seasoned expertise for an information advantage

Together, FS Investments, Novus and Barclays strive to identify the best ideas of hedge funds and institutions to generate equity-like returns while minimizing the impact of loss.

Search our site