The Fund’s investment objective is to seek to generate absolute returns for investors in most market environments. The Fund intends to achieve this objective by investing both long and short in Small Cap European equities. The Fund is subadvised by S.W. Mitchell Capital, a $2 billion European equity specialist based in London, UK. Portfolio Manager Jamie Carter uses a bottom up fundamental security selection process in order to identify ideas for the Fund. On the long side he focuses on companies with long-term growth potential and strong management teams, the short portfolio includes businesses that are overpriced and are deteriorating.
S.W. Mitchell Capital
S.W. Mitchell Capital LLP believes that European stock markets are inefficient and that substantial value can be created by employing fundamentally driven company research. The firm visits potential investee companies extensively and will invest in what they believe to be the best quality growth companies where management has embraced the philosophy of maximizing shareholder value. S.W. Mitchell Capital also seeks opportunities amongst those companies which are restructuring their operations in order to realize shareholder value. The firm aims to create value by selling short shares of companies where they believe the business outlook is deteriorating and valuations does not reflect the value they perceived.
|Performance through February 28, 2017|
|Monthly (2/28/17)||MTD||3 Month||YTD||1 Year||3 Year||5 Year||10 Year||Since Inception*|
|MSCI Europe Small Cap Index||1.52%||9.45%||4.96%||12.54%||-0.34%||9.98%||3.44%||2.37%|
|Morningstar L/S Equity Cat.||1.47%||3.64%||2.77%||9.15%||1.54%||3.82%||1.67%||1.31%|
|Performance through December 31, 2016|
|Quarterly (12/31/16)||MTD||3 Month||YTD||1 Year||3 Year||5 Year||10 Year||Since Inception*|
|Management Fee: 2.00%
Total operating fund expenses as of 12/30/2015: (Gross) 2.62%. After fee waiver (Net) 2.24%
*Fund Inception: 12/30/2015. The Predecessor Fund Inception: 10/31/2007.**Pursuant to an operating expense limitation agreement between Balter Liquid Alternatives, LLC (the “Adviser”) and the Fund, the Adviser has agreed to waive its fees and/or absorb expenses of the Fund to ensure that Total Annual Fund Operating Expenses (excluding any front-end or contingent deferred sales loads, brokerage fees and commissions, acquired fund fees and expenses, borrowing costs (such as interest and dividend expense on securities sold short), taxes and extraordinary or non-recurring expenses, including, but not limited to, litigation) for the Fund do not exceed 2.24% and 2.54% of the Fund’s average net assets, for Institutional Class and Investor Class shares, respectively, through February 28, 2018. This operating expense limitation agreement can be terminated only by, or with the consent of, the Board of Trustees. The Adviser is permitted to seek reimbursement from the Fund for fees it waived and Fund expenses it paid for the prior three fiscal years, as long as the reimbursement does not cause the Fund’s operating expenses to exceed the lower of the current expense cap or the expense cap in place at the time of the waiver or reimbursement.
|Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. The fund imposes a 1.00% redemption fee on shares sold within 60 days. For performance information current to the most recent month-end, please call toll free 855-854-7258.
The indices shown are for information purposes only and are not reflective of any investment. As it is not possible to invest in the indices, the data shown does not reflect or compare features of an actual investment, such as its objectives, costs and expenses, liquidity, safety, guarantees or insurance, fluctuation of principal or return, or tax features.
*Performance shown here includes performance for the Fund’s predecessor hedge fund (“Predecessor Fund”). The performance of the Predecessor Fund was used from 10/31/2007 to 12/29/2015; The performance of the Fund was used from 12/30/2015 to 2/29/2016. The prior performance of the Predecessor Fund is net of management fee and other expenses, but does not include the effect of the performance fee. The Fund’s investment goals, policies, guidelines and restrictions are similar to the Predecessor Fund. From its inception date, the Predecessor Fund was not subject to certain investment restrictions, diversification requirements and other restrictions of the 1940 Act of the Code, if they had been applicable, it might have adversely affected its performance. In addition, the predecessor hedge was not subject to sales loads that would have adversely affect performance.