Rational Advisors

What Rational Advisors does

Rational Advisors, Inc. is a privately held U.S. investment adviser founded in 2001 and headquartered at 36 North New York Avenue, Huntington, NY, with a secondary office at 140 East 45th Street in New York City. The firm operates the "Rational Funds" brand and offers a lineup of registered alternative mutual funds (with tickers RFXIX, RHSIX, HSUTX, HRSTX, RDMIX, NUXIX, and HDCTX) spanning special-situations fixed income, tactical and strategic allocation, hedged equity, and managed futures strategies. The flagship Rational Special Situations Income Fund (RFXIX) invests primarily in non-agency residential mortgage-backed securities (NARMBS) and pursues total return through identification of structurally or legally flawed debt issuances, activist engagement with trustees and servicers, and, where warranted, litigation.

The firm's investment capabilities are delivered almost entirely through sub-advisors — core relationships are with ESM Management LLC (RFXIX, founded by Dr. Eric S. Meyer) and Warrington Asset Management (HRSTX), with additional specialty sub-advisors including Aspect Capital (managed futures), Equity Armor Investments (hedged equity), SMH Capital Advisors (high income), Perini Capital (strategic income), and Managed Asset Portfolios (global equity/balanced). Senior leadership, including President & CEO Jerry Szilagyi and CIO David Miller, is shared with affiliated advisor Catalyst Capital Advisors LLC, providing shared back-office, compliance, and distribution infrastructure.

The business model is asset-based fee revenue: each fund offers multiple share classes (Institutional/Class I, Class A with up to 4.75% front-end load, Class C with up to 1.00% CDSC) with net expense ratios ranging from approximately 1.77% to 2.72%, contractually capped through April 30, 2027. Distribution runs through FINRA-member broker-dealer Northern Lights Distributors, LLC to financial advisors and their clients — primarily RIAs, wealth managers, and broker-dealer representatives serving HNW/accredited investors — supplemented by a self-directed direct account channel via Ultimus Fund Solutions. No revenue figures, AUM, ownership, or institutional shareholding details are publicly disclosed; the company remains privately held under its founding executive team.

Name

Rational Advisors

Legal name

Rational Advisors, Inc.

Website

https://rationalmf.com

Company type

Private

Founded year

2001

Operating status

Operating

Headcount range

11–50 employees

Short description

Rational Advisors is a privately held U.S. investment adviser operating the "Rational Funds" brand of alternative mutual funds, serving financial advisors and HNW investors via a multi-sub-advisor platform anchored by a non-agency RMBS special-situations flagship strategy.

Ownership category

akta.pro rank

Product category

Investment Management / Alternative Mutual Funds

NAICS

Portfolio Management and Investment Advice (523940), Open-End Investment Funds (525910), Securities, Commodity Contracts, and Other Financial Investments and Related Activities (523)

SIC

Investment Advice (6282), Asset-Backed Securities (6189)

akta.pro primary industry

Fixed Income Mutual Funds (FSAAAEAB)

akta.pro secondary industry

Stressed / Rescue Financing Funds (FSANAKAE)

Keywords

• Alternative mutual funds
• Investment management services
• Fixed income funds
• Asset management advisory
• Hedge fund strategies

Headquarters

HQ city

Huntington

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Technology or R&D, Infrastructure, Others

Revenue model

1. Investment Management Fees: The fund generates revenue through management fees charged on assets under management across multiple share classes (Institutional/Class I, Class A, Class C). Expense ratios range from 1.77% to 2.72% net annual operating expenses.
2. Distribution Fees: Revenue shared with distributor Northern Lights Distributors, LLC through distribution (12b-1) fees. Class A shares subject to maximum 4.75% front-end sales charge; Class C shares subject to maximum 1.00% deferred sales charge.

Pricing tiers

Go-to-market motion2 records

Distribution channels3 records

Marketing channels4 records

Core offering

Rational Advisors, Inc. is an investment management firm that manages the Rational Funds lineup of alternative investment mutual funds. The firm specializes in non-traditional strategies including non-agency residential mortgage-backed securities (NARMBS), special situations fixed income, tactical return, strategic allocation, managed futures, and hedged equity funds. Funds are distributed through financial advisors and broker-dealers to deliver non-correlated returns and alpha to investor portfolios.

Product overview

Rational Advisors is an alternative investment management firm offering a suite of alternative mutual funds designed to provide non-traditional investment solutions. The product lineup includes fixed income funds (Rational Special Situations Income Fund), tactical/allocation funds (Rational Strategic Allocation Fund, Rational Tactical Return Fund), equity funds (Rational Dynamic Brands), managed futures funds (Rational/ReSolve Adaptive Asset Allocation Fund, Rational/NuWave Enhanced Market Opportunity Fund), and hedged equity funds (Rational Equity Armor Fund). These funds are distributed by Northern Lights Distributors and are designed to support financial advisors and their clients with innovative strategies that offer low correlation and non-traditional viewpoints compared to traditional buy-and-hold equity and income strategies.

Differentiator

Problem solved

Functional benefit

Brands

• Rational Special Situations Income Fund: Special situations fixed income fund investing primarily in non-agency residential mortgage-backed securities (NARMBS)
• Rational Strategic Allocation Fund
• Rational Tactical Return Fund

Products and services

• Rational Special Situations Income Fund (RFXIX) An alternative fixed income fund that seeks total return through investments in non-agency residential mortgage-backed securities (NARMBS) and special situations opportunities. The fund identifies mispriced securities due to structural or market-driven factors and exploits inefficiencies through activist strategies including litigation. For financial advisors and investors seeking non-correlated fixed income exposure.
• Rational Strategic Allocation Fund (RHSIX) A strategic allocation fund seeking current income and moderate capital appreciation through an index-plus strategy combining S&P 500 futures exposure with a non-traditional fixed income portfolio. Designed for investors seeking blended equity and alternative fixed income exposure.
• Rational Dynamic Brands Fund (HSUTX) An equity fund focused on long-term performance, designed to generate alpha through non-traditional viewpoints on branded consumer companies. Winner of 2021 Americas Top Performer Award - Best Fund under $100m - Equity.
• Rational Tactical Return Fund (HRSTX) An alternative non-correlated fund designed to perform well during periods of market volatility, seeking total return through long-term capital appreciation and income. Uses tactical hedging strategies via sub-advisor Warrington Asset Management for downside protection.
• Rational/ReSolve Adaptive Asset Allocation Fund (RDMIX) An alternative managed futures fund focused on providing diversification and risk-adjusted returns through adaptive asset allocation strategies. Won the 2020 LSEG Lipper Fund Award for Best Fund over 3 Years in Alternative Managed Futures category.
• Rational/NuWave Enhanced Market Opportunity Fund (NUXIX) A fund seeking long-term capital appreciation and superior risk-adjusted returns by combining actively managed U.S. equities with a diversified managed futures component. Designed for investors seeking diversified exposure to U.S. equities with managed futures overlay.
• Rational Equity Armor Fund (HDCTX) A hedged equity fund designed to participate in market advances while benefiting from volatility spikes. Uses sub-advisor Equity Armor Investments' hedging strategies for equity protection. For investors seeking equity market participation with downside hedging.

Quantifiable outcome

• RFXIX generated +546% total return from 02/01/2009 to 12/31/2025 vs Bloomberg US Aggregate TR Index at +63%
• +3 more outcomes

Segments2 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

Eight partnerships are on record, tiered core and minor.

• ESM Management LLCcoreStrategic or Co-development Partner · 1 February 2009ESM Management LLC serves as Sub-Advisor for Rational Special Situations Income Fund (RFXIX). Provides investment advisory services with focus on acquiring, analyzing, and liquidating portfolios of non-agency residential mortgage backed securities. Founded by Dr. Eric S. Meyer in January 2009.
• Northern Lights Distributors, LLCcoreChannel Partner/ Reseller/ DistributorNorthern Lights Distributors, LLC is the registered broker-dealer distributor for Rational Funds. Member FINRA/SIPC. Responsible for fund distribution to financial advisors and institutional investors nationwide.
• Warrington Asset ManagementcoreStrategic or Co-development PartnerWarrington Asset Management serves as sub-advisor for Rational Tactical Return Fund (HRSTX). Decades of trading experience and ability to hedge positions quickly to help investors avoid significant drawdowns during volatility.
• Managed Asset PortfoliosminorStrategic or Co-development PartnerSub-advises Catalyst/MAP Global Equity Fund and Catalyst/MAP Global Balanced Fund. Investment team provides equity market analysis and portfolio management for alternative fund strategies.
• Perini Capital LLCminorStrategic or Co-development PartnerPerini Capital LLC serves as sub-advisor to Catalyst/Perini Strategic Income Fund. Provides fixed income outlook and bond market analysis perspectives.
• Aspect CapitalminorStrategic or Co-development PartnerAspect Capital serves as sub-advisor to Catalyst/Aspect Enhanced Multi-Asset Fund (CASIX). Provides systematic trend following and quantitative investment strategies.
• Equity Armor InvestmentsminorStrategic or Co-development PartnerEquity Armor Investments sub-advises Rational Equity Armor Fund (HDCTX) and Catalyst Nasdaq-100 Hedged Equity Fund. Provides hedging strategies for equity protection.
• SMH Capital Advisors, LLCminorStrategic or Co-development PartnerSMH Capital Advisors serves as sub-advisor to Catalyst/SMH High Income Fund and Catalyst/SMH Total Return Income Fund. Provides credit selection and fixed income investment strategies.

Scale indicators9 records

Recent moves7 records

Expansion highlights4 records

Direct peers

• Catalyst Capital Advisors: Sister boutique alternative mutual fund sponsor sharing CEO Jerry Szilagyi, CIO David Miller, and operational staff. Manages a parallel lineup of alt mutual funds distributed via Northern Lights, making it the closest direct comparable.
• AlphaCentric Advisors: Third affiliated boutique advisor under the same multi-boutique platform (shared executives including Tom Hamel as Head of Investment Operations). Operates alternative mutual funds on the Northern Lights distribution platform with comparable structure.
• DoubleLine Capital: Boutique alternative fixed income mutual fund manager (founded by Jeffrey Gundlach) with strong non-traditional fixed income franchise and award-winning track record — directly comparable to RFXIX's special situations fixed income positioning.
• Angel Oak Capital Advisors: Boutique alternative credit manager offering yield-oriented mutual funds with active credit selection. Comparable size and structure as an alternative mutual fund boutique targeting advisor channels.
• AQR Funds: Established alternative mutual fund manager offering systematic, low-correlation multi-asset strategies. Overlaps directly with Rational's managed futures, tactical allocation, and adaptive asset allocation products (notably the ReSolve sub-advised fund).
• RiverNorth Capital Management: Alternative credit and event-driven fund manager with mutual fund and closed-end fund offerings. Comparable specialty alternatives boutique with advisor-channel distribution focus.
• Manning & Napier: Boutique multi-strategy mutual fund sponsor with alternative and tactical strategies sold through advisor channels. Similar scale and product diversification profile to Rational Advisors.
• Litman Gregory: Boutique fund-of-funds and alternatives platform offering actively managed and alternative mutual funds to advisor channels. Comparable boutique distribution-led model with similar advisor focus.

Broad incumbents

• Stone Ridge Asset Management: Established alternatives manager with multi-strategy mutual fund offerings across asset classes. A larger, broader incumbent competing in overlapping alternative fund categories with greater scale and product breadth.
• Eaton Vance (Morgan Stanley Investment Management): Major established alternatives and structured strategies manager (now part of Morgan Stanley IM) with a wide alt mutual fund lineup. Represents the scaled incumbent alternative that boutique managers like Rational compete against for advisor mindshare.

Market position

Strengths4 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/rationalmf
• LinkedInlinkedin.com/company/rational-advisors-inc.

Revenue estimate

Valuation estimate

Number of profiles

Profiles12 records

Subsidiaries1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Rational Advisors