Fortress Wealth Trims Mid-Cap Stake – Again?

So, Fortress Wealth Group decided to take a step back from the First Trust Mid Cap Core AlphaDEX Fund. You know, the one that’s basically the financial equivalent of a midlife crisis. They sold $3.3 million worth of shares, which is like saying, “I’m not mad, I’m just… reevaluating my options.”

What Happened

Florida’s Fortress Wealth Group dropped 27,140 shares of the First Trust Mid Cap Core AlphaDEX Fund (FNX +0.46%) during the third quarter. The value? $3.3 million. That’s enough to buy a small island, or a very fancy coffee machine. The fund now holds 11,107 shares worth $1.4 million. That’s like having a tiny sliver of a cake after everyone else has taken their share.

What Else to Know

Fortress’s FNX stake is now 0.6% of reportable 13F assets. That’s like being the least popular kid in class, but still getting a free slice of pizza. Their top holdings? VUG, VTV, QQQ, FBND, SPY. It’s like the financial version of a group project where everyone is trying to be the star.

NYSEMKT:VUG: $41 million (17.7% of AUM)
NYSEMKT:VTV: $28.3 million (12.2% of AUM)
NASDAQ:QQQ: $21.6 million (9.3% of AUM)
NYSEMKT:FBND: $10.7 million (4.6% of AUM)
NYSEMKT:SPY: $8.9 million (3.8% of AUM)

FNX is up 8% over the past year, but the S&P 500 is up 20%. So, it’s like the underdog that’s still not winning. The fund’s strategy is to generate alpha with the AlphaDEX methodology. Which sounds like a secret society for stocks. Diversified across mid-cap equities, determined by a quantitative selection process. That’s just a fancy way of saying, “We use math to pick stocks, not our gut.”

ETF Overview

Metric	Value
AUM	$1.2 billion
Yield	0.9%
Price (as of market close Friday)	$124.39
1-year price change	8%

ETF Snapshot

FNX’s investment strategy seeks to generate positive alpha by selecting mid-cap stocks from the NASDAQ US 600 Mid Cap Index using the AlphaDEX® methodology. The portfolio is diversified across U.S. mid-cap equities, with holdings determined by a quantitative selection process. The fund operates as an exchange-traded fund (ETF) with a structured, rules-based approach.

Foolish Take

Fortress Wealth Group’s third-quarter reduction in the First Trust Mid Cap Core AlphaDEX Fund appears to be part of a broader portfolio recalibration, as opposed to a shift away from equities altogether. The Florida-based wealth advisory sold 27,140 shares valued at roughly $3.3 million, according to an SEC filing released Thursday, leaving a smaller $1.4 million position at quarter-end.

FNX-a mid-cap equity with top holdings ETF Bloom Energy Corporation, Symbiotic and Guardant Health-has trailed the broader S&P 500 over the past year, up just 8% versus the benchmark’s nearly 20% gain. For a firm like Fortress, which emphasizes risk management, diversification, and steady growth, the sale may reflect a tactical rotation toward large-cap or income-generating assets, evident in its top holdings such as VUG, VTV, and FBND.

For long-term investors, FNX remains a disciplined way to access the mid-cap space-but recent performance highlights the challenge of factor-driven strategies in momentum-heavy markets. Fortress’ adjustment suggests a pragmatic tilt toward balance and consistency in an evolving rate and earnings environment.

Glossary

13F reportable assets: The financial version of a mandatory disclosure.
Assets under management (AUM): The total value of your investments, which is basically your net worth, but with more jargon.
AlphaDEX® methodology: A secret sauce for picking stocks.
Mid-cap: Companies that are neither big nor small, just… awkward.
Exchange-traded fund (ETF): A fund that’s traded like a stock.
Quantitative selection process: Using numbers to pick stocks, because who needs intuition?
Factor-driven selection: Choosing based on stats, not feelings.
Systematic approach: Following rules, not emotions.
Benchmark: The standard you’re trying to beat, but probably not.
Dividend yield: How much money you get from your investments, expressed in percentages.

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2025-11-03 12:54