Horizon Active Risk Assist Fund - Advisor Class (ARAAX) Stock Analysis

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• A 9-signal quantitative MoonshotScore built from filings, insider activity, and market data — computed from the numbers, not from opinion.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Horizon Active Risk Assist Fund - Advisor Class (ARAAX) Financial Services Profile

Horizon Active Risk Assist Fund - Advisor Class (ARAAX) utilizes a multi-discipline active asset allocation approach, focusing on global equity and fixed income securities through direct investments and ETFs. With a high gross margin and substantial dividend yield, the fund aims to deliver returns by strategically navigating global markets.

What Is the Investment Thesis for ARAAX?

Horizon Active Risk Assist Fund - Advisor Class (ARAAX) presents an investment opportunity driven by its active asset allocation strategy and focus on global securities markets. With a profit margin of 29.0% and a dividend yield of 9.08%, ARAAX offers potential income and capital appreciation. The fund's ability to invest in both equity and fixed income securities provides flexibility and diversification. Key catalysts include the fund's active management approach, which aims to outperform passive strategies by capitalizing on market inefficiencies. However, potential risks include market volatility and the fund's beta of 1.23, indicating higher sensitivity to market movements. The fund's success depends on the advisor's ability to effectively allocate assets and manage risk in a dynamic global environment.

Based on FMP financials and quantitative analysis

ARAAX Key Highlights

Market Cap of $1.62B, reflecting the fund's size and investor confidence.

• Profit Margin of 29.0%, indicating efficient management and profitability.
• Gross Margin of 100.0%, showcasing the fund's ability to retain all revenue after direct costs.
• Beta of 1.23, suggesting higher volatility compared to the market.
• Dividend Yield of 9.08%, providing a substantial income stream for investors.

Who Are ARAAX's Competitors?

ARAAX is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are ARAAX's Key Strengths?

Active asset allocation strategy.

• Diversified investment approach.
• Experienced investment management team.

What Are ARAAX's Weaknesses?

Higher expense ratio compared to passive funds.

• Dependence on the advisor's ability to make effective asset allocation decisions.
• Potential for underperformance during certain market conditions.

What Could Drive ARAAX Stock Higher?

ARAAX catalyst: Potential changes in global economic conditions that could favor the fund's active asset allocation strategy.

• The fund's ability to attract and retain investors through consistent performance.
• Increasing demand for diversified investment solutions.

What Are the Key Risks for ARAAX?

Financial-distress signal — its Altman Z-Score of 0.96 sits in the distress zone (elevated bankruptcy risk).

• Market volatility and economic downturns could negatively impact the fund's performance.
• Changes in interest rates and inflation could affect the value of fixed income securities.
• Competition from other asset management firms offering similar investment strategies.

What Are the Growth Opportunities for ARAAX?

• Expansion into Emerging Markets: Horizon Active Risk Assist Fund - Advisor Class (ARAAX) can explore growth opportunities by expanding its investments into emerging markets. These markets offer higher growth potential but also come with increased risks. By carefully selecting investments in emerging markets, the fund can enhance its returns and diversify its portfolio. The emerging markets asset management industry is projected to grow at a rate of 8-10% annually over the next five years, presenting a significant opportunity for ARAAX to increase its assets under management.
• Increased Focus on Sustainable Investing: There is a growing demand for sustainable and socially responsible investments. ARAAX can capitalize on this trend by incorporating ESG (Environmental, Social, and Governance) factors into its investment process. By offering investment products that align with investors' values, the fund can attract a new segment of clients and enhance its reputation.
• Development of New Investment Products: ARAAX can develop new investment products to cater to the evolving needs of investors. This could include thematic funds that focus on specific sectors or trends, such as technology, healthcare, or renewable energy. By offering a diverse range of investment products, the fund can attract a wider range of clients and increase its assets under management. The market for thematic funds is growing rapidly, with new funds being launched regularly to capture emerging investment trends.
• Strategic Partnerships and Acquisitions: ARAAX can pursue strategic partnerships or acquisitions to expand its reach and capabilities. This could involve partnering with other asset management firms or acquiring smaller firms with specialized expertise. By leveraging the strengths of other organizations, ARAAX can enhance its investment process, expand its distribution network, and increase its assets under management. The asset management industry is consolidating, with larger firms acquiring smaller firms to gain scale and efficiency.
• Enhancement of Digital Capabilities: ARAAX can invest in technology to enhance its digital capabilities and improve the client experience. This could include developing a user-friendly mobile app, offering online investment advice, and using data analytics to personalize investment recommendations. By embracing digital technologies, the fund can attract younger investors and improve its operational efficiency. The digital asset management market is growing rapidly, with robo-advisors and online platforms gaining popularity among investors.

What Are ARAAX's Competitive Advantages?

• Established track record in active asset allocation.
• Experienced investment management team.
• Diversified investment approach across global securities markets.

What Does ARAAX Do?

Horizon Active Risk Assist Fund - Advisor Class (ARAAX) operates within the asset management sector, employing a dynamic, multi-discipline active asset allocation investment strategy. The fund's core objective is to generate returns by strategically allocating assets across various sectors of the global securities markets. The fund primarily invests in equity securities and ETFs that focus on equity securities, but it also has the flexibility to invest in fixed income securities or ETFs that specialize in fixed income. This approach allows the fund to adapt to changing market conditions and pursue opportunities across different asset classes and geographies. The fund's investment strategy involves active management, where the advisor makes decisions on asset allocation based on macroeconomic factors, market trends, and fundamental analysis. This active approach aims to outperform passive investment strategies by identifying and capitalizing on market inefficiencies. The fund's ability to invest in both equity and fixed income securities provides diversification benefits and allows it to adjust its portfolio based on its outlook for different asset classes. ARAAX's investment decisions are driven by a comprehensive understanding of global securities markets and a disciplined approach to risk management, seeking to deliver consistent returns while mitigating potential downside risks.

What Products and Services Does ARAAX Offer?

• Actively manages a portfolio of global securities.
• Allocates assets across various sectors of the global securities markets.
• Invests primarily in equity securities and ETFs that focus on equity securities.
• May invest in fixed income securities or ETFs that focus on fixed income securities.
• Employs a multi-discipline active asset allocation investment approach.
• Seeks to achieve its investment objective through strategic asset allocation.

How Does ARAAX Make Money?

• Generates revenue through management fees charged on assets under management (AUM).
• May earn performance-based fees for outperforming benchmarks.
• Revenue is influenced by market performance and the fund's ability to attract and retain investors.

What Industry Does ARAAX Operate In?

Horizon Active Risk Assist Fund - Advisor Class (ARAAX) operates in the asset management industry, which is characterized by intense competition and evolving market dynamics. The industry is influenced by factors such as interest rates, economic growth, and investor sentiment. ARAAX competes with other asset management firms that offer similar investment strategies and products. The fund's ability to differentiate itself through its active asset allocation approach and risk management practices is crucial for attracting and retaining investors. The asset management industry is expected to continue growing, driven by increasing demand for investment solutions and the rising affluence of individuals globally.

Who Are ARAAX's Key Customers?

• Individual investors seeking diversified investment exposure.
• Institutional investors, including pension funds and endowments.
• Financial advisors who recommend the fund to their clients.

Horizon Active Risk Assist Fund - Advisor Class's Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.96 places it in the distress zone, a signal of elevated financial risk.

Return on equity for Horizon Active Risk Assist Fund - Advisor Class stands at 10.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.1%, showing how much profit it generates from its asset base. Its free cash flow yield is 77.9%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.00 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 0.0%, the inverse of the P/E and a quick read on earnings relative to price.

ARAAX Valuation & Market Position

With a $1.62B market cap, Horizon Active Risk Assist Fund - Advisor Class sits in the small-cap segment of the market. Relative to its peer group, ARAAX's quantitative score of 54/100 is roughly in line with the peer average of 45/100.

ARAAX Financials

ARAAX Latest News

No recent news available for ARAAX.

ARAAX Analyst Consensus

ARAAX MoonshotScore

Horizon Active Risk Assist Fund - Advisor Class Financial Services Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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