OHFGX Thoughts Entering August and Key Takeaways

• After the market’s sharp rotation away from momentum trades in July, the OHFGX Investment Team, following corporate fundamentals, remained constructive on the long-term AI capex cycle. The team emphasized earnings quality after the prior month’s volatility.
• August saw the U.S. equity rally broadening, while the momentum factor continued weaker. The S&P 500 rose +2.7%, the Nasdaq 100 gained +4.2%, and the Nasdaq Comp advanced +4.0%, while the Russell 2000 gained +0.9%. Market leadership remained more diversified than during the second quarter.
• Corporate fundamentals remained supportive. Second-quarter earnings were exceptionally strong, broad-based, with improving earnings growth outside the core AI buildout. Earnings growth triumphed over valuation compression, as interest rates rose.
• The macro backdrop slowed but was resilient. Growth indicators slowed, while inflation remained above the Federal Reserve’s target. The 10-year Treasury ended August near 4.75%, while the 10-year real yields rose to 2.40%, a headwind for long-duration growth assets.
• Late in August, Federal Reserve messaging turned more hawkish at Jackson Hole. Chair Warsh emphasized the need for clearer progress toward the 2% inflation objective. The U.S. Treasury announced an expansion of longer-dated bond buybacks. Markets entered September with higher expectations for rate increases.
• Oil stayed elevated amid renewed U.S.-Iran and Strait of Hormuz tensions.
• OHFGX had a difficult relative month. Positive sector allocation was offset by negative security selection as software technology stocks rallied while hardware stocks declined. The cost of index and sector hedges during a rising equity market also was a performance headwind.

OHFGX Portfolio Actions and Positioning

• Long side: The Team continued to emphasize industries benefiting from durable AI infrastructure spending, including semiconductors, optical networking, data-center connectivity, power management, cooling, electrical equipment, and industrial automation. Following July’s correction, the Team increased its focus on areas where AI implementation and monetization were beginning to improve, while maintaining exposure to materials and power-related beneficiaries of the physical AI buildout.
• Short side: The Team continued to trade opportunistically around businesses with stretched expectations, or deteriorating returns on invested capital. August’s broad risk-on environment and sharp rallies in selected high short-interest consumer and technology-related industries made the short side more difficult.
• Hedging program: The hedging program remained active through index and semiconductor-related options. These positions helped control portfolio risk during periods of intra-month volatility, but the net cost of protection was a meaningful drag as the major equity indices finished the month higher.

OHFGX Performance Discussion

Positive relative allocation came from Technology, Communication Services, and selected Consumer Discretionary exposure, while security selection and option hedges were the primary headwinds. At the industry level, materials, energy, selected AI software/platform exposure, and precious-metals-related positions were helpful, while automation, semiconductor equipment, power-management exposure, selected consumer shorts, and market hedges detracted. The Team continues to view these results in the context of a long/short strategy designed to manage risk across a full market cycle rather than maximize upside in every rising month.

https://www.morningstar.com/funds/xnas/ohfgx/performance

U.S. Stock Performance – Index and Sector Moves

 

Index / Asset	August 2026 Return / Bloomberg	Comment
S&P 500	+2.7%	Returns led by strong earnings and resilient growth.
Nasdaq-100	+4.2%	Growth leadership resumed; software technology recovered.
Nasdaq Composite	+4.0%	Technology reversed July weakness.
Russell 2000	+0.9%	Small caps lagged despite broader year-to-date strength.
Dow Jones Industrial	+1.5%	Positive but lagged growth-heavy indices.
Communication Services	+3.0%	Selected platform and media exposures improved.
Information Technology	+6.4%	Software lead after 1h26 correction.
Health Care	+4.9%	Strong Q3 rotation into previously lagging sectors.
Energy	+7.4%	Higher oil prices and geopolitical risk supported leadership.

Source:Return data provided by Bloomberg.

Bottom Line

August 2026 was a rebound month for U.S. equities, but it was not a return to the narrow leadership of the second quarter. Software technology recovered, while Energy, Materials, Health Care, and other lagging areas participated. Strong corporate earnings and resilient economic activity offset concerns around inflation, interest rates, and geopolitics.

OHFGX experienced a difficult relative month as negative technology security selection and portfolio hedges offset positive sector allocation. The Fund remained concentrated around AI infrastructure, optical connectivity, power, industrial modernization, and selected materials themes, but August’s dispersion created meaningful differences between industry fundamentals and individual security performance.

The Team remains focused on businesses with improving sales, margins, and returns on invested capital, preferably supported by durable secular tailwinds. Higher Long-term Treasury yields can pressure equity valuations and geopolitical risks continued to influence energy prices and inflation expectations.

What Matters in September

• The September 16 Federal Reserve meeting, including whether policymakers raise rates and how the new Summary of Economic Projections changes the expected path for policy.
• CPI and PCE inflation, particularly whether tariffs, and supply constraints keep headline inflation elevated.
• The 10-year Treasury yield near 4.75% and whether real yields continue rising pressuring equity valuations.
• Oil, natural gas, and Strait of Hormuz developments, including the risk that energy remains an inflation tax.
• The durability of AI capital spending and whether earnings strength continues broadening from infrastructure into software, automation, and downstream implementation.

Sources Reviewed

• External market sources: J.P. Morgan Asset Management August 2026 Market Review; DataTrek August Summary; YCharts; Bespoke The Closer; Goldman Sachs End of Month Market Intelligence; Nasdaq August Review.
• Fund sources: Bloomberg OHFGX performance and attribution analytics and Morningstar OHFGX performance data supplied by Oak Harvest.

 

Investors should consider the investment objectives, risks, and charges and expenses of the Fund before investing. The prospectus contains this and other information about the Fund and should be read carefully before investing. The prospectus may be obtained by clicking here or by calling (833) 549-4121.

 

RISK CONSIDERATIONS

All investments involve risks, and the Fund cannot guarantee that it will achieve its investment objective. An investment in the Fund is not insured or guaranteed by any government agency. The Fund’s returns and share price will fluctuate, and you may lose money by investing in the Fund. There is a risk that you could lose all or a portion of your investment in the Fund. The prices of equity securities change in response to many factors including the historical and prospective earnings of the issuer, the value of its assets, general economic conditions, interest rates, investor perceptions and market liquidity.

The adviser’s judgments about the growth, value or potential appreciation of an investment may prove to be incorrect or fail to have the intended results, which could adversely impact the Fund’s performance and cause it to underperform relative to other funds with similar investment goals or relative to its benchmark, or not to achieve its investment goal.

The Portfolio may engage in frequent trading of securities to achieve its investment goal. Active trading may result in high portfolio turnover and correspondingly greater brokerage commissions and other transaction costs, which will be borne directly by the Portfolio and could affect your performance.

Convertible securities may be illiquid and may be required to convert at a time and at a price that is unfavorable to a Fund. A convertible security has characteristics of both equity and debt securities and, as a result, is exposed to risks that are typically associated with both types of securities. The market value of a convertible security tends to decline as interest rates increase but also tends to reflect changes in the market price of the common stock of the issuing company.

While hedging strategies can be very useful and inexpensive ways of reducing risk, they are sometimes ineffective due to unexpected changes in the market. Hedging also involves the risk that changes in the value of the related security will not match those of the instruments being hedged as expected, in which case any losses on the instruments being hedged may not be reduced.

Please refer to the prospectus for these and other important risks.

 

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