Hatteras Alpha Hedged Strategies Fund Offers Institutional Shares and Allocates to Managed Futures

RALEIGH, N.C., Oct. 3, 2011 /PRNewswire/ -- Hatteras Funds, a provider of unique alternative investment solutions for financial advisors and their clients, has announced two enhancements to the Hatteras Alpha Hedged Strategies Fund (Ticker: ALPHX), a multi-strategy, multi-manager alternative mutual fund offering daily liquidity and position level transparency.

Hatteras Funds has added an institutional class of shares ("I-Shares") (Ticker: ALPIX) to the Hatteras Alpha Hedged Strategies Fund to better serve the needs of Financial Advisors and their clients. The I-Shares of the Hatteras Alpha Hedged Strategies Fund are offered at a total net expense ratio capped at 2.99%*, 1.00% lower than both the A-Shares and No Load-Shares.

Hatteras Funds has also added Managed Futures to the Fund's strategy allocation.  Hatteras Alpha Hedged Strategies Fund now offers investors exposure to 19 hedge fund managers diversified across four alternative strategies (long/short equity, market neutral, relative value, and event driven) and an allocation to 5 managed futures trading advisors, enhancing its role as a core alternative mutual fund solution.

"The addition of I-Shares and Managed Futures to the Fund illustrates Hatteras Fund's responsiveness to the needs of our Financial Advisors and the clients they serve," said Brian Jacobs, CEO of Hatteras Funds.

"Managed futures and strategies associated with it have historically had low correlation to stocks and bonds, which potentially allow it to take advantage of market volatility and deliver strong risk-adjusted returns in a variety of market conditions," said Robert Worthington, CFA, President of Hatteras Funds.

"There is significant and growing demand for differentiated daily-liquid alternative funds in models and fee-based platforms that aim to reduce overall portfolio volatility and improve diversification," added Jacobs. Hatteras Alpha Hedged Strategies Fund allows Financial Advisors and their clients to more easily allocate to a multi-manager, multi-strategy core alternative allocation.

For more information about Hatteras Funds, please contact Tony Kono at 973.850.7323 or [email protected].

For more information about the funds, please contact Hatteras Funds at 866.388.6292.

About Hatteras Funds

Hatteras Funds provides unique alternative investment solutions for financial advisors and their clients. We believe that all investors should have access to the same sophisticated investment approach and superior portfolio management talent as the largest institutions. A boutique alternative investment specialist founded in 2003, Hatteras Funds offers a suite of innovative products designed to solve specific portfolio needs. The Raleigh, N.C.-based firm manages $2 billion in alternative investment strategies for a broad range of institutions, endowments, pensions and high net worth individuals. For more information, please visit www.hatterasmutualfunds.com.

The Hatteras Alpha Hedged Strategies Fund's investment objectives, risks, charges and expenses must be considered carefully before investing. The summary prospectus and prospectus contain this and other important information about the investment company, and may be obtained by calling 877.569.2382 or visiting www.hatterasmutualfunds.com. Read it carefully before investing.

The Hatteras Alternative Mutual Funds (the "Funds") are funds of funds. Therefore, your cost of investing in the Funds will generally be higher than the cost of investing directly in the shares of the mutual funds in which it invests. By investing in the Funds, you will indirectly bear your share of any fees and expenses charged by the underlying funds in addition to indirectly bearing the principal risks of the Funds. The underlying funds may engage in speculative investment strategies and practices, such as the use of leverage, short sales, and derivatives transactions, which can increase the risk of investment loss. Please refer to the summary prospectus or prospectus for more information about the Funds, including risks, fees, and expenses.

The Funds are distributed by Hatteras Capital Distributors, LLC, an affiliate of Hatteras Alternative Mutual Funds, LLC by virtue of common control or ownership.

*The net fees and expenses of the Fund (which exclude brokerage commissions and portfolio trading transfer tax, interest on Fund borrowings, dividends and interest paid on short sales, taxes, acquired fund fees and expenses associated with investments in non-affiliated investment companies, litigation and other extraordinary expenses) do not exceed 2.99% of average daily net assets (the "Expense Cap").  Hatteras Alternative Mutual Funds, LLC (the "Advisor") has contractually agreed to waive all or a portion of its operating services fees and/or pay expenses of the Fund to ensure that its Net Annual Fund Operating Expenses do not exceed the Expense Cap.

SOURCE Hatteras Funds