Why This Wealth Firm Trimmed Its Mid-Cap Exposure by $3 Million

Core Insights - Fortress Wealth Group (FWG Holdings) reduced its position in the First Trust Mid Cap Core AlphaDEX Fund by selling 27,140 shares valued at approximately $3.3 million during the third quarter [2][6] - Following the sale, FWG Holdings' position in FNX now represents 0.6% of its reportable 13F assets, with remaining holdings valued at $1.4 million at the end of the quarter [3][6] Fund Performance - FNX shares were priced at $124.39, reflecting an 8% increase over the past year, which is significantly lower than the S&P 500's nearly 20% gain during the same period [3][4] - The fund has total assets under management (AUM) of $1.2 billion and a yield of 0.9% [4] Investment Strategy - FNX employs a strategy that seeks to generate positive alpha by selecting mid-cap stocks from the NASDAQ US 600 Mid Cap Index using the AlphaDEX® methodology, which is a quantitative selection process [5][10] - The fund's performance indicates challenges for factor-driven strategies in momentum-heavy markets, suggesting a need for balance and consistency in investment approaches [9] Portfolio Adjustments - The sale of FNX shares by FWG Holdings may indicate a tactical rotation towards large-cap or income-generating assets, as evidenced by its top holdings in other funds [7][8] - Top holdings include VUG, VTV, and FBND, which reflect a focus on risk management and diversification [7][8]