The wild price swings afflicting the global markets this year have led many investors to search for alternative sources of return with low sensitivity to stocks and bonds.
Oppenheimer Fundamentals Alternatives Fund (QVOPX)1 aims to do just that, seeking to provide diversification by investing in multiple long and short strategies to help deliver an asymmetric return profile with low volatility. The Fund strives to help investors manage their portfolio risks by maintaining a low sensitivity to the movements of traditional asset classes and delivering more of the market upside than downside.
The strategy employs a thematic investment approach identifying long-term opportunities emerging from change within a particular region, industry/sector, or specific company. For example, the Oppenheimer Fundamentals Alternatives Fund seeks to help investors capitalize on dramatic changes in how the media industry creates and delivers content. The new media marketplace is disrupting a wide range of traditional revenue models, including conventional bundled cable television packages, and a shift among advertisers to digital platforms as a more effective way of reaching consumers.
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1Prior to August 3, 2015, the Fund’s name was Oppenheimer Flexible Strategies Fund.
Special Risks: Fixed income investing entails credit and interest rate risks. When interest rates rise, bond prices generally fall, and the Fund’s share prices can fall. Foreign investments may be volatile and involve additional expenses and special risks, including currency fluctuations, foreign taxes, regulatory and geopolitical risks. Value investing involves the risk that undervalued securities may not appreciate as anticipated. Short selling may increase volatility and risk of loss and is considered a speculative investment practice. Derivative instruments entail higher volatility and risk of loss compared to traditional stock or bond investments. Mid-sized company stock is typically more volatile than that of larger company stock. It may take a substantial period of time to realize a gain on an investment in a midsized company, if any gain is realized at all. Commodity-linked investments are speculative and have substantial risks, including the loss of principal. The Fund may also invest through a wholly-owned Cayman Islands subsidiary, which involves the risk that changes to the laws of the Cayman Islands could negatively affect the Fund. Diversification does not guarantee profit or protect against loss.
These views represent the opinions of OppenheimerFunds, Inc. and are not intended as investment advice or to predict or depict the performance of any investment. These views are as of the close of business on September 30, 2015, and are subject to change based on subsequent developments.