First Trust Multi Strategy Fund Manager Performance Evaluation

FTMCX Fund   24.55  0.02  0.08%   
The fund shows a Beta (market volatility) of 0.13, which means not very significant fluctuations relative to the market. As returns on the market increase, First Trust's returns are expected to increase less than the market. However, during the bear market, the loss of holding First Trust is expected to be smaller as well.

Risk-Adjusted Performance

Very Strong

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in First Trust Multi Strategy are ranked lower than 33 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, First Trust is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
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Exclusive Meta Offers to Buy Stake in Venture Funds Started by AI Hires Nat Friedman and Daniel Gross - WSJ
07/03/2025
  

First Trust Relative Risk vs. Return Landscape

If you would invest  2,372  in First Trust Multi Strategy on April 25, 2025 and sell it today you would earn a total of  83.00  from holding First Trust Multi Strategy or generate 3.5% return on investment over 90 days. First Trust Multi Strategy is currently producing 0.0556% returns and takes up 0.1317% volatility of returns over 90 trading days. Put another way, 1% of traded mutual funds are less volatile than First, and 99% of all traded equity instruments are likely to generate higher returns over the next 90 trading days.
  Expected Return   
       Risk  
Assuming the 90 days horizon First Trust is expected to generate 3.19 times less return on investment than the market. But when comparing it to its historical volatility, the company is 5.93 times less risky than the market. It trades about 0.42 of its potential returns per unit of risk. The Dow Jones Industrial is currently generating roughly 0.23 of returns per unit of risk over similar time horizon.

First Trust Current Valuation

Overvalued
Today
24.55
Please note that First Trust's price fluctuation is very steady at this time. Based on Macroaxis valuation methodology, the entity is overvalued. First Trust Multi shows a prevailing Real Value of USD22.48 per share. The current price of the fund is USD24.55. Our model computes the value of First Trust Multi from reviewing the entity technical indicators and probability of bankruptcy. In general, investors advise acquiring undervalued mutual funds and dropping overvalued mutual funds since, at some point, mutual fund prices and their ongoing real values will submerge.
Since First Trust is currently traded on the exchange, buyers and sellers on that exchange determine the market value of First Mutual Fund. However, First Trust's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  24.55 Real  22.48 Hype  24.53 Naive  24.5
The intrinsic value of First Trust's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence First Trust's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
22.48
Real Value
26.98
Upside
Estimating the potential upside or downside of First Trust Multi Strategy helps investors to forecast how First mutual fund's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of First Trust more accurately as focusing exclusively on First Trust's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
24.2424.4224.60
Details
Hype
Prediction
LowEstimatedHigh
24.4024.5324.66
Details
Naive
Forecast
LowNext ValueHigh
24.3724.5024.64
Details

First Trust Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for First Trust's investment risk. Standard deviation is the most common way to measure market volatility of mutual funds, such as First Trust Multi Strategy, and traders can use it to determine the average amount a First Trust's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = 0.4221

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Estimated Market Risk

 0.13
  actual daily
1
99% of assets are more volatile

Expected Return

 0.06
  actual daily
1
99% of assets have higher returns

Risk-Adjusted Return

 0.42
  actual daily
33
67% of assets perform better
Based on monthly moving average First Trust is performing at about 33% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of First Trust by adding it to a well-diversified portfolio.

First Trust Fundamentals Growth

First Mutual Fund prices reflect investors' perceptions of the future prospects and financial health of First Trust, and First Trust fundamentals are critical determinants of its market performance. Overall, investors pay close attention to revenue and earnings growth, profit margins, and debt levels. These fundamentals can have a significant impact on First Mutual Fund performance.

About First Trust Performance

Evaluating First Trust's performance through its fundamental ratios, provides valuable insights into its operational efficiency and profitability. For instance, if First Trust has a high ROA and ROE, it suggests that the company is efficiently using its assets and equity to generate substantial profits, making it an attractive investment. Conversely, if First Trust has a low ROA and ROE, it may indicate underlying issues in asset and equity management, signaling a need for operational improvements. Please also refer to our technical analysis and fundamental analysis pages.
The Adviser delegates the management of a portion of fund assets to a group of experienced investment managers that utilize a variety of investment strategies and styles. The fund may invest up to 85 percent of its net assets in derivatives including structured products, options, futures, forward currency contracts and swaps, including credit-default swaps.

Things to note about First Trust Multi performance evaluation

Checking the ongoing alerts about First Trust for important developments is a great way to find new opportunities for your next move. Mutual Fund alerts and notifications screener for First Trust Multi help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
First is showing solid risk-adjusted performance over 90 days
Latest headline from news.google.com: Exclusive Meta Offers to Buy Stake in Venture Funds Started by AI Hires Nat Friedman and Daniel Gross - WSJ
The fund retains all of the assets under management (AUM) in different types of exotic instruments
Evaluating First Trust's performance can involve analyzing a variety of financial metrics and factors. Some of the key considerations to evaluate First Trust's mutual fund performance include:
  • Analyzing First Trust's financial statements, including its income statement, balance sheet, and cash flow statement, helps in understanding its overall financial health and growth potential.
  • Getting a closer look at valuation ratios like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-book (P/B) ratio help in understanding whether First Trust's stock is overvalued or undervalued compared to its peers.
  • Examining First Trust's industry or sector and how it is performing can give you an idea of its growth potential and how it is positioned relative to its competitors.
  • Evaluating First Trust's management team can have a significant impact on its success or failure. Reviewing the track record and experience of First Trust's management team can help you assess the Mutual Fund's leadership.
  • Pay attention to analyst opinions and ratings of First Trust's mutual fund. These opinions can provide insight into First Trust's potential for growth and whether the stock is currently undervalued or overvalued.
It's essential to remember that evaluating First Trust's mutual fund performance is not an exact science, and many factors can impact First Trust's mutual fund market price. Therefore, it's also important to diversify your portfolio and not rely solely on one company or stock for your investments.

Other Information on Investing in First Mutual Fund

First Trust financial ratios help investors to determine whether First Mutual Fund is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in First with respect to the benefits of owning First Trust security.
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