Hussman Investment Trust of Cincinnati, Ohio, filed a prospectus with the SEC April 21 to offer the Hussman Strategic Growth Fund.
The fund, to be managed by Hussman Econometrics Advisors of Ellicott City, Md., will seek long-term capital appreciation but will drift between aggressive and defensive investment styles to preserve capital during market downturns, according to the prospectus. Hussman Econometrics is a 12-year-old firm that does statistical modeling for pension funds and brokerage houses. It also publishes a newsletter on market timing for individual investors. This will be the firm's first mutual fund.
The Hussman Strategic Growth Fund will switch between aggressive and defensive investment styles by using a proprietary statistical model that analyzes the direction of stock prices, interest rates and other economic factors, according to the prospectus. The fund will also hold options and futures as hedges against market downturns, and will increase those holdings during market downturns, according to the prospectus.