Federated Hermes MDT Market Neutral Fund
Portfolio of Investments
September 30, 2021 (unaudited)
Shares | Value | ||
COMMON STOCKS—61.0% | |||
Communication Services—3.7% | |||
325 | 1 | Alphabet, Inc., Class A | $868,894 |
2,577 | 1 | Altice USA, Inc. | 53,395 |
48,354 | 1 | Cars.com, Inc. | 611,678 |
3,429 | 1 | Discovery, Inc., Class A | 87,028 |
2,950 | Electronic Arts, Inc. | 419,638 | |
1,985 | 1 | EverQuote, Inc. | 36,981 |
953 | 1 | IAC/InteraActiveCorp. | 124,166 |
3,319 | News Corp., Inc., Class A | 78,096 | |
1,662 | 1 | Take-Two Interactive Software, Inc. | 256,064 |
1,026 | ViacomCBS, Inc., Class B | 40,537 | |
11,186 | 1 | Yelp, Inc. | 416,567 |
TOTAL | 2,993,044 | ||
Consumer Discretionary—6.6% | |||
429 | 1 | Brinker International, Inc. | 21,042 |
7,633 | Camping World Holdings, Inc. | 296,695 | |
134 | 1 | Chipotle Mexican Grill, Inc. | 243,548 |
950 | 1 | CROCs, Inc. | 136,306 |
938 | Dick’s Sporting Goods, Inc. | 112,344 | |
806 | Domino’s Pizza, Inc. | 384,430 | |
265 | 1 | Floor & Decor Holdings, Inc. | 32,009 |
30,050 | 1 | Ford Motor Co. | 425,508 |
5,893 | 1 | Funko, Inc. | 107,312 |
10,933 | 1 | G-III Apparel Group Ltd. | 309,404 |
2,462 | 1 | Goodyear Tire & Rubber Co. | 43,577 |
872 | Installed Building Products, Inc. | 93,435 | |
1,667 | 1 | iRobot Corp. | 130,860 |
1,583 | Jack in the Box, Inc. | 154,073 | |
613 | 1 | Lovesac Co./The | 40,513 |
13,497 | Macy’s, Inc. | 305,032 | |
12,391 | 1 | PlayAGS, Inc. | 97,641 |
1,020 | 1 | Red Rock Resorts, Inc. | 52,244 |
1,151 | 1 | Revolve Group, Inc. | 71,097 |
1,887 | 1 | Scientific Games Corp. | 156,753 |
5,169 | 1 | SeaWorld Entertainment, Inc. | 285,949��� |
2,685 | Shutterstock, Inc. | 304,264 | |
562 | 1 | Skyline Corp. | 33,754 |
12,724 | 1 | Sonos, Inc. | 411,749 |
3,304 | Wingstop, Inc. | 541,625 | |
5,090 | 1 | YETI Holdings, Inc. | 436,162 |
TOTAL | 5,227,326 | ||
Consumer Staples—0.6% | |||
4,195 | Energizer Holdings, Inc. | 163,815 | |
3,088 | Nu Skin Enterprises, Inc., Class A | 124,971 | |
5,730 | 1 | Sprouts Farmers Market, Inc. | 132,764 |
1,104 | 1 | United Natural Foods, Inc. | 53,456 |
TOTAL | 475,006 |
1
Shares | Value | ||
COMMON STOCKS—continued | |||
Energy—2.4% | |||
15,938 | 1 | CONSOL Energy, Inc. | $414,707 |
24,323 | Marathon Oil Corp. | 332,495 | |
775 | 1 | Nabors Industries Ltd. | 74,772 |
19,169 | 1 | Oceaneering International, Inc. | 255,331 |
22,916 | 1 | Peabody Energy Corp. | 338,927 |
10,370 | 1 | Penn Virginia Corp. | 276,568 |
15,995 | 1 | Propetro Holding Corp. | 138,357 |
1,118 | Targa Resources, Inc. | 55,017 | |
TOTAL | 1,886,174 | ||
Financials—4.7% | |||
1,919 | Artisan Partners Asset Management, Inc. | 93,877 | |
1,228 | Axis Capital Holdings Ltd. | 56,537 | |
10,950 | 1 | Brighthouse Financial, Inc. | 495,269 |
581 | Carlyle Group LP/The | 27,470 | |
2,872 | Chimera Investment Corp. | 42,649 | |
1,074 | 1 | Green Dot Corp. | 54,054 |
3,150 | Interactive Brokers Group, Inc., Class A | 196,371 | |
783 | KKR & Co., Inc., Class Common | 47,669 | |
1,979 | MSCI, Inc., Class A | 1,203,905 | |
5,279 | ProAssurance Corp. | 125,535 | |
2,015 | Selective Insurance Group, Inc. | 152,193 | |
522 | Signature Bank | 142,130 | |
440 | 1 | Silvergate Capital Corp. | 50,820 |
8,478 | Tradeweb Markets, Inc. | 684,853 | |
821 | 1 | Upstart Holdings, Inc. | 259,797 |
3,988 | Virtu Financial, Inc. | 97,427 | |
TOTAL | 3,730,556 | ||
Health Care—14.2% | |||
5,250 | AbbVie, Inc. | 566,317 | |
12,470 | 1 | Akebia Therapeutics, Inc. | 35,914 |
211 | 1 | Align Technology, Inc. | 140,406 |
1,594 | 1 | Alnylam Pharmaceuticals, Inc. | 300,963 |
7,981 | 1 | AnaptysBio, Inc. | 216,445 |
3,066 | 1 | Apellis Pharmaceuticals, Inc. | 101,055 |
1,988 | 1 | Arcus Biosciences, Inc. | 69,322 |
9,047 | 1 | Avantor, Inc. | 370,022 |
3,719 | 1 | Biohaven Pharmaceutical Holding Co. Ltd. | 516,606 |
1,193 | Bruker Corp. | 93,173 | |
21,452 | 1 | Community Health Systems, Inc. | 250,988 |
502 | 1 | Cortexyme, Inc. | 46,013 |
3,579 | 1 | Cue Biopharma, Inc. | 52,146 |
1,394 | 1 | Denali Therapeutics, Inc. | 70,327 |
447 | 1 | Dexcom, Inc. | 244,446 |
5,290 | 1 | Envista Holdings Corp. | 221,175 |
800 | 1 | IDEXX Laboratories, Inc. | 497,520 |
1,306 | 1 | Inari Medical, Inc. | 105,917 |
3,802 | 1 | Intellia Therapeutics, Inc. | 510,038 |
3,291 | 1 | IQVIA Holdings, Inc. | 788,326 |
832 | 1 | Karuna Therapeutics, Inc. | 101,779 |
4,939 | 1 | Kiniksa Pharmaceuticals Ltd. | 56,255 |
1,472 | 1 | Krystal Biotech, Inc. | 76,853 |
2,675 | 1 | Maravai LifeSciences Holdings, Inc. | 131,289 |
2
Shares | Value | ||
COMMON STOCKS—continued | |||
Health Care—continued | |||
2,250 | McKesson Corp. | $448,605 | |
629 | 1 | Moderna, Inc. | 242,077 |
4,648 | 1 | Myriad Genetics, Inc. | 150,084 |
1,269 | 1 | Neurocrine Biosciences, Inc. | 121,710 |
463 | 1 | OptimizeRX Corp. | 39,610 |
6,173 | 1 | Organogenesis Holdings, Inc. | 87,904 |
1,499 | 1 | Orthofix Medical, Inc. | 57,142 |
1,649 | 1 | Pacira BioSciences, Inc. | 92,344 |
4,690 | 1 | Progyny, Inc. | 262,640 |
3,329 | 1 | Protagonist Therapeutics, Inc. | 58,990 |
13,217 | 1 | Puma Biotechnology, Inc. | 92,651 |
5,044 | 1 | SAGE Therapeutics, Inc. | 223,500 |
3,926 | 1 | Shockwave Medical, Inc. | 808,285 |
4,141 | 1 | Tandem Diabetes Care, Inc. | 494,353 |
1,915 | 1 | TransMedics Group, Inc. | 63,367 |
961 | 1 | United Therapeutics Corp. | 177,381 |
3,871 | 1 | Veeva Systems, Inc. | 1,115,506 |
2,045 | 1 | Vertex Pharmaceuticals, Inc. | 370,943 |
1,404 | 1 | Xencor, Inc. | 45,855 |
3,950 | Zoetis, Inc. | 766,853 | |
TOTAL | 11,283,095 | ||
Industrials—6.5% | |||
1,358 | 1 | AAR Corp. | 44,040 |
1,098 | Allegion PLC | 145,134 | |
6,246 | Apogee Enterprises, Inc. | 235,849 | |
14,629 | 1 | Astronics Corp. | 205,684 |
1,147 | 1 | Atkore, Inc. | 99,697 |
1,597 | 1 | Atlas Air Worldwide Holdings, Inc. | 130,443 |
353 | 1 | Avis Budget Group, Inc. | 41,128 |
8,342 | 1 | BlueLinx Holdings, Inc. | 407,757 |
4,982 | Carrier Global Corp. | 257,868 | |
11,486 | 1 | CIRCOR International, Inc. | 379,153 |
4,424 | 1 | DXP Enterprises, Inc. | 130,818 |
2,628 | Ennis, Inc. | 49,538 | |
1,432 | 1 | Generac Holdings, Inc. | 585,215 |
915 | Insperity, Inc. | 101,327 | |
58 | Lennox International, Inc. | 17,062 | |
13,020 | Otis Worldwide Corp. | 1,071,286 | |
13,059 | Pitney Bowes, Inc. | 94,155 | |
1,985 | Ryder System, Inc. | 164,179 | |
2,478 | TransUnion | 278,304 | |
1,648 | 1 | TriNet Group, Inc. | 155,868 |
12,108 | 1 | Triumph Group, Inc. | 225,572 |
4,370 | 1 | XPO Logistics, Inc. | 347,765 |
TOTAL | 5,167,842 | ||
Information Technology—18.9% | |||
1,531 | Alliance Data Systems Corp. | 154,463 | |
1,654 | 1 | Ambarella, Inc. | 257,594 |
1,104 | 1 | Arista Networks, Inc. | 379,379 |
3,900 | 1 | Arrow Electronics, Inc. | 437,931 |
4,562 | 1 | Asana, Inc. | 473,718 |
3,158 | 1 | Atlassian Corp. PLC | 1,236,104 |
3
Shares | Value | ||
COMMON STOCKS—continued | |||
Information Technology—continued | |||
10,700 | Avnet, Inc. | $395,579 | |
2,146 | Bentley Systems, Inc. | 130,133 | |
994 | 1 | Blackbaud, Inc. | 69,928 |
9,275 | 1 | CloudFlare, Inc. | 1,044,829 |
8,297 | 1 | Commvault Systems, Inc. | 624,847 |
3,722 | 1 | Crowdstrike Holdings, Inc. | 914,793 |
7,293 | 1 | Datadog, Inc. | 1,030,866 |
181 | 1 | DocuSign, Inc. | 46,595 |
3,931 | 1 | Domo, Inc. | 331,934 |
16,450 | 1 | Dropbox, Inc. | 480,669 |
7,645 | 1 | Dynatrace Holdings LLC | 542,566 |
772 | 1 | Elastic N.V. | 115,020 |
2,013 | 1 | EPAM Systems, Inc. | 1,148,376 |
2,468 | 1 | Fortinet, Inc. | 720,755 |
48 | 1 | Globant SA | 13,488 |
1,958 | 1 | HubSpot, Inc. | 1,323,784 |
2,369 | 1 | MA-COM Technology Solutions Holdings, Inc. | 153,677 |
653 | 1 | Paycom Software, Inc. | 323,725 |
2,046 | 1 | Paylocity Corp. | 573,698 |
5,092 | 1 | Plantronics, Inc. | 130,915 |
708 | 1 | Pure Storage, Inc. | 17,813 |
1,166 | 1 | Qualys, Inc. | 129,764 |
2,613 | 1 | Rapid7, Inc. | 295,321 |
75 | 1 | Sitime Corp. | 15,313 |
5,242 | 1 | Sprout Social, Inc. | 639,262 |
3,305 | 1 | SunPower Corp. | 74,957 |
1,073 | 1 | Varonis Systems, Inc. | 65,292 |
2,432 | 1 | Workiva, Inc. | 342,815 |
1,617 | 1 | Zscaler, Inc. | 424,010 |
TOTAL | 15,059,913 | ||
Materials—2.3% | |||
3,823 | 1 | Alcoa Corp. | 187,098 |
21,105 | 1 | Allegheny Technologies, Inc. | 350,976 |
10,084 | 1 | Berry Global Group, Inc. | 613,914 |
19,508 | Chemours Co./The | 566,902 | |
1,825 | 1 | Koppers Holdings, Inc. | 57,050 |
675 | Reliance Steel & Aluminum Co. | 96,133 | |
TOTAL | 1,872,073 | ||
Real Estate—1.1% | |||
8,057 | Gaming and Leisure Properties, Inc. | 373,200 | |
9,375 | Macerich Co. (The) | 156,656 | |
2,573 | National Storage Affiliates Trust | 135,829 | |
405 | SBA Communications Corp. | 133,881 | |
1,116 | SL Green Realty Corp. | 79,058 | |
TOTAL | 878,624 | ||
TOTAL COMMON STOCKS (IDENTIFIED COST $46,066,089) | 48,573,653 | ||
TOTAL INVESTMENT IN SECURITIES—61.0% (IDENTIFIED COST $46,066,089) | 48,573,653 | ||
OTHER ASSETS AND LIABILITIES - NET—39.0%2 | 31,009,923 | ||
TOTAL NET ASSETS—100% | $79,583,576 |
4
SECURITIES SOLD SHORT—(50.9)%
Shares | Value | ||
Communication Services—(1.7)% | |||
1,375 | ATN International, Inc. | $64,419 | |
2,666 | Bandwidth, Inc. | 240,687 | |
15 | Cable One, Inc. | 27,197 | |
3,997 | Cardlytics, Inc. | 335,508 | |
2,808 | Cinemark Holdings, Inc. | 53,942 | |
15,906 | E.W. Scripps Co. | 287,262 | |
1,178 | Madison Square Garden Entertainment Corp. | 85,605 | |
7,535 | Sinclair Broadcast Group, Inc. | 238,709 | |
2,045 | Tegna, Inc. | 40,327 | |
TOTAL | 1,373,656 | ||
Consumer Discretionary—(5.0)% | |||
1,823 | Callaway Golf Co. | 50,369 | |
10,827 | Coursera, Inc. | 342,675 | |
10,987 | DraftKings, Inc. | 529,134 | |
2,146 | GrowGeneration Corp. | 52,942 | |
2,161 | Guess ?, Inc. | 45,403 | |
4,942 | K12, Inc. | 177,615 | |
29,207 | Las Vegas Sands Corp. | 1,068,976 | |
414 | Lithia Motors, Inc. | 131,255 | |
5,222 | MGM Resorts International | 225,329 | |
897 | Norwegian Cruise Line Holdings Ltd. | 23,959 | |
1,438 | Ollie’s Bargain Outlet Holding, Inc. | 86,683 | |
4,902 | Peloton Interactive, Inc. | 426,719 | |
3,065 | Royal Caribbean Cruises, Ltd. | 272,632 | |
6,199 | The RealReal, Inc. | 81,703 | |
15,362 | Vroom, Inc. | 339,039 | |
1,442 | Wynn Resorts Ltd. | 122,209 | |
TOTAL | 3,976,642 | ||
Consumer Staples—(0.8)% | |||
5,700 | Beyond Meat, Inc. | 599,982 | |
Energy—(1.8)% | |||
4,262 | Brigham Minerals, Inc. | 81,660 | |
15,142 | CNX Resources Corp. | 191,092 | |
4,559 | Delek US Holdings, Inc. | 81,925 | |
20,507 | Equitrans Midstream Corp. | 207,941 | |
4,247 | Green Plains, Inc. | 138,665 | |
6,070 | Liberty Oilfield Services, Inc. | 73,629 | |
8,868 | Murphy Oil Corp. | 221,434 | |
4,554 | New Fortress Energy, Inc. | 126,374 | |
3,968 | ONEOK, Inc. | 230,104 | |
281 | Pioneer Natural Resources, Inc. | 46,789 | |
TOTAL | 1,399,613 | ||
Financials—(3.6)% | |||
2,879 | Amerant Bancorp, Inc. | 71,227 | |
2,678 | American Financial Group, Inc. | 336,973 | |
2,884 | Ameris Bancorp | 149,622 | |
7,200 | Assured Guaranty Ltd. | 337,032 | |
14,441 | BGC Partners, Inc., Class A | 75,238 | |
4,369 | Cannae Holdings, Inc. | 135,920 | |
1,386 | Erie Indemnity Co. | 247,290 | |
4,343 | GoHealth, Inc. | 21,845 |
5
Shares | Value | ||
Financials—continued | |||
1,560 | Goosehead Insurance, Inc. | $237,572 | |
441 | Lemonade, Inc. | 29,551 | |
3,816 | LendingTree, Inc. | 533,591 | |
2,044 | Open Lending | 73,727 | |
840 | Palomar Holdings, Inc. | 67,897 | |
13,617 | Redwood Trust, Inc. | 175,523 | |
5,237 | SelectQuote, Inc. | 67,714 | |
1,741 | SLM Corp. | 30,642 | |
2,777 | StoneX Group, Inc. | 183,004 | |
4,254 | TPG RE Finance Trust, Inc. | 52,665 | |
TOTAL | 2,827,033 | ||
Health Care—(12.1)% | |||
2,483 | Accolade, Inc. | 104,708 | |
22,309 | AdaptHealth Corp. | 519,577 | |
2,440 | Adaptive Biotechnologies Corp. | 82,936 | |
8,099 | Aerie Pharmaceuticals, Inc. | 92,329 | |
4,037 | Allogene Therapeutics, Inc. | 103,751 | |
4,291 | American Well Corp. | 39,091 | |
2,313 | Arcturus Therapeutics Holdings, Inc. | 110,515 | |
8,164 | Berkeley Lights, Inc. | 159,688 | |
757 | BioAtla, Inc. | 22,286 | |
2,682 | Coherus Biosciences, Inc. | 43,100 | |
4,042 | Cryoport, Inc. | 268,833 | |
7,732 | Elanco Animal Health, Inc. | 246,573 | |
352 | Glaukos Corp. | 16,956 | |
5,477 | Global Blood Therapeutics, Inc. | 139,554 | |
10,742 | Guardant Health, Inc. | 1,342,857 | |
11,402 | Haemonetics Corp. | 804,867 | |
10,530 | Harmony Biosciences Holdings, Inc. | 403,615 | |
7,325 | Heron Therapeutics, Inc. | 78,304 | |
4,343 | Insmed, Inc. | 119,606 | |
7,502 | Invitae Corp. | 213,282 | |
10,929 | Iovance Biotherapeutics, Inc. | 269,509 | |
256 | iRhythm Technologies, Inc. | 14,991 | |
9,850 | Karyopharm Therapeutics, Inc. | 57,327 | |
2,018 | Kodiak Sciences, Inc. | 193,688 | |
1,333 | Kymera Therapeutics, Inc. | 78,300 | |
1,453 | Livanova PLC | 115,063 | |
691 | Mirati Therapeutics, Inc. | 122,245 | |
7,362 | Nektar Therapeutics | 132,222 | |
404 | Nevro Corp. | 47,018 | |
6,100 | Oak Street Health, Inc. | 259,433 | |
6,881 | Outset Medical, Inc. | 340,197 | |
9,522 | PTC Therapeutics, Inc. | 354,314 | |
4,251 | Pulmonx Corp. | 152,951 | |
2,409 | Reata Pharmaceuticals, Inc. | 242,369 | |
5,816 | REGENXBIO, Inc. | 243,807 | |
1,168 | Revolution Medicines, Inc. | 32,132 | |
2,573 | Sana Biotechnology, Inc. | 57,944 | |
4,250 | Sarepta Therapeutics, Inc. | 393,040 | |
2,901 | Schrodinger, Inc. | 158,627 | |
7,593 | Teladoc, Inc. | 962,868 | |
2,113 | Ultragenyx Pharmaceutical, Inc. | 190,571 |
6
Shares | Value | ||
Health Care—continued | |||
3,409 | Vapotherm, Inc. | $75,918 | |
842 | Veracyte, Inc. | 39,111 | |
5,357 | Viatris, Inc. | 72,587 | |
1,594 | Vir Biotechnology, Inc. | 69,371 | |
4,702 | Xbiotech, Inc. | 60,891 | |
TOTAL | 9,648,922 | ||
Industrials—(6.1)% | |||
23,187 | Air Lease Corp. | 912,177 | |
1,770 | Arcosa, Inc. | 88,801 | |
8,565 | Array Technologies, Inc. | 158,624 | |
2,685 | Bloom Energy Corp. | 50,263 | |
46,262 | Clarivate PLC | 1,013,138 | |
3,189 | Delta Air Lines, Inc. | 135,883 | |
22,996 | Fluor Corp. | 367,246 | |
2,759 | Heartland Express, Inc. | 44,199 | |
3,297 | Hydrofarm Holdings Group, Inc. | 124,792 | |
2,390 | Kirby Corp. | 114,624 | |
307 | RBC Bearings, Inc. | 65,145 | |
4,728 | Stericycle, Inc. | 321,362 | |
6,497 | SunRun, Inc. | 285,868 | |
2,665 | TPI Composites, Inc. | 89,944 | |
18,698 | Uber Technologies, Inc. | 837,671 | |
5,334 | United Airlines Holdings, Inc. | 253,738 | |
TOTAL | 4,863,475 | ||
Information Technology—(16.6)% | |||
2,152 | 8x8, Inc. | 50,335 | |
1,111 | Alkami Technology, Inc. | 27,420 | |
6,401 | Alteryx, Inc. | 467,913 | |
1,964 | Anaplan, Inc. | 119,588 | |
1,395 | Appian Corp. | 129,052 | |
12,040 | BigCommerce Holdings, Inc. | 609,706 | |
11,148 | Black Knight, Inc. | 802,656 | |
4,113 | C3.AI, Inc. | 190,596 | |
11,255 | Citrix Systems, Inc. | 1,208,449 | |
5,402 | Coupa Software, Inc. | 1,184,010 | |
6,750 | Cree, Inc. | 544,928 | |
3,426 | Digital Turbine, Inc. | 235,538 | |
1,599 | E2open Parent Holdings, Inc. | 18,069 | |
12,576 | Fastly, Inc. | 508,573 | |
1,213 | Itron, Inc. | 91,739 | |
628 | LiveRamp Holdings, Inc. | 29,660 | |
183 | Okta, Inc. | 43,433 | |
1,382 | ON24, Inc. | 27,557 | |
12,030 | Palantir Technologies, Inc. | 289,201 | |
1,688 | Par Technology Corp. | 103,829 | |
8,511 | Ping Identity Holding Corp. | 209,115 | |
1,933 | Q2 Holdings, Inc. | 154,911 | |
1,516 | RingCentral, Inc. | 329,730 | |
452 | Silicon Laboratories, Inc. | 63,352 | |
1,635 | SolarWinds Corp. | 27,354 | |
8,785 | Splunk, Inc. | 1,271,277 | |
24,764 | StoneCo Ltd. | 859,806 | |
9,872 | Sumo Logic, Inc. | 159,137 |
7
Shares | Value | ||
Information Technology—continued | |||
3,959 | Twilio, Inc. | $1,263,119 | |
2,249 | Unity Software, Inc. | 283,936 | |
30,018 | Veeco Instruments, Inc. | 666,700 | |
8,174 | ViaSat, Inc. | 450,142 | |
194 | WEX, Inc. | 34,171 | |
1,690 | Wix.com Ltd. | 331,189 | |
23,318 | Yext, Inc. | 280,516 | |
567 | Zoom Video Communications, Inc. | 148,271 | |
TOTAL | 13,214,978 | ||
Materials—(1.5)% | |||
2,484 | Carpenter Technology Corp. | 81,326 | |
10,128 | Cleveland-Cliffs, Inc. | 200,636 | |
2,037 | Livent Corp. | 47,075 | |
2,211 | MP Materials Corp. | 71,261 | |
31,914 | NOVAGOLD Resources, Inc. | 219,568 | |
2,302 | Quaker Chemical Corp. | 547,231 | |
TOTAL | 1,167,097 | ||
Real Estate—(1.6)% | |||
465 | Americold Realty Trust | 13,508 | |
6,121 | Howard Hughes Corp. | 537,485 | |
9,460 | Redfin Corp. | 473,946 | |
3,294 | Ryman Hospitality Properties | 275,708 | |
TOTAL | 1,300,647 | ||
Utilities—(0.1)% | |||
979 | Essential Utilities, Inc. | 45,112 | |
3,571 | Vistra Corp. | 61,064 | |
TOTAL | 106,176 | ||
Total Securities Sold Short (PROCEEDS $41,102,521) | $40,478,221 |
The Value of Securities Sold Short is included in “Other Assets and Liabilities—Net.”
An affiliated company is a company in which the Fund, alone or in combination with other funds, has ownership of at least 5% of the voting shares. Transactions with affiliated companies during the period ended September 30, 2021, were as follows:
Value as of 12/31/2020 | Purchases at Cost | Proceeds from Sales | |
Information Technology: | |||
Domo, Inc. | $— | $320,110 | $— |
TOTAL OF AFFILIATED COMPANIES TRANSACTIONS | $— | $320,110 | $— |
8
Change in Unrealized Appreciation/ Depreciation | Net Realized Gain/ (Loss) | Value as of 9/30/2021 | Shares Held as of 9/30/2021 | Dividend Income |
$11,824 | $— | $331,934 | 3,931 | $— |
$11,824 | $— | $331,934 | 3,931 | $— |
1 | Non-income-producing security. |
2 | Assets, other than investments in securities, less liabilities. A significant portion of this balance is the result of securities sold short transaction as of September 30, 2021. |
Note: The categories of investments are shown as a percentage of total net assets at September 30, 2021.
Investment Valuation
In calculating its net asset value (NAV), the Fund generally values investments as follows:
■ Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
■ Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs, or NAV per share practical expedient, as applicable.
■ Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and asked quotations.
9
■ Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Fund’s Board of Trustees (the “Trustees”).
■ For securities that are fair valued in accordance with procedures established by and under the general supervision of the Trustees, certain factors may be considered, such as: the last traded or purchase price of the security, information obtained by contacting the issuer or dealers, analysis of the issuer’s financial statements or other available documents, fundamental analytical data, the nature and duration of restrictions on disposition, the movement of the market in which the security is normally traded, public trading in similar securities or derivative contracts of the issuer or comparable issuers, movement of a relevant index, or other factors including but not limited to industry changes and relevant government actions.
If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, if the Fund cannot obtain price evaluations from a pricing service or from more than one dealer for an investment within a reasonable period of time as set forth in the Fund’s valuation policies and procedures, or if information furnished by a pricing service, in the opinion of the valuation committee (“Valuation Committee”), is deemed not representative of the fair value of such security, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share, and the actual value obtained could be materially different.
Fair Valuation and Significant Events Procedures
The Trustees have ultimate responsibility for determining the fair value of investments for which market quotations are not readily available. The Trustees have appointed a Valuation Committee comprised of officers of the Fund, Federated MDTA LLC (the “Adviser”) and certain of the Adviser’s affiliated companies to assist in determining fair value and in overseeing the calculation of the NAV. The Trustees have also authorized the use of pricing services recommended by the Valuation Committee to provide fair value evaluations of the current value of certain investments for purposes of calculating the NAV. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-party pricing services’ policies, procedures and valuation methods (including key inputs, methods, models and assumptions), transactional back-testing, comparisons of evaluations of different pricing services, and review of price challenges by the Adviser based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Trustees. The Trustees periodically review and approve the fair valuations made by the Valuation Committee and any changes made to the procedures.
Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a “mid” evaluation). The Fund normally uses bid evaluations for any U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for any other types of fixed-income securities and any OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.
The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment’s value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:
■ With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts;
■ Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded;
■ Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, or a natural disaster affecting the issuer’s operations or regulatory changes or market developments affecting the issuer’s industry.
The Trustees have adopted procedures whereby the Valuation Committee uses a pricing service to provide factors to update the fair value of equity securities traded principally in foreign markets from the time of the close of their respective foreign stock exchanges to the pricing time of the Fund. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment in accordance with the fair valuation procedures approved by the Trustees. The Trustees have ultimate responsibility for any fair valuations made in response to a significant event.
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:
Level 1—quoted prices in active markets for identical securities.
Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.
Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
At September 30, 2021, all investments of the Fund utilized Level 1 inputs in valuing the Fund’s assets carried at fair value.
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