Fund History
This Statement of Additional Information relates to Foundry Earnings Quality (Accruals) Factor ETF (FACC), a hypothetical model portfolio in the Hypothetical Model Portfolio Series (not a registered trust). It is not part of any registration statement because none exists; it is provided for research transparency only.
Investment Policies and Restrictions
The model applies a single rules-based factor screen and holds the top bucket of the ranked universe (with an offsetting short leg in the research series). It does not use leverage beyond the long-short construction, options, or borrowing. There are no fundamental investment restrictions because the Fund is not a registered investment company and holds no assets.
Portfolio Construction Methodology
The hypothetical Fund seeks to track a rules-based model that, each month, ranks liquid U.S. common stocks (price above $5 and a market-capitalization floor) by a Earnings Quality (Accruals) signal and takes a long position in the top decile of names with the lowest signal values. The research model additionally holds a short position in the bottom bucket to isolate the factor (a long-short construction).
Long positions are cap-weighted (or equal-weighted where noted) within the long leg. The model reconstitutes monthly using point-in-time Sharadar fundamentals and split- and dividend-adjusted total-return prices. It is a research backtest, not a live trading record.