Balter European L/S Small Cap Fund


Investment Strategy

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 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 June 30, 2019
Monthly (06/30/19) MTD 3 Month YTD 1 Year 3 Year 5 Year 10 Year Since Inception*
BESMX -0.32% -3.76% 2.10% -13.18% 5.33% 0.51% 7.23% 7.56%
MSCI Europe Small Cap Index 5.17% 2.79% 15.30% -6.76% 9.96% 3.79% 11.07% 3.44%
Morningstar L/S Equity Cat. 3.73% 1.76% 7.71% 1.13% 4.96% 2.07% 3.88% 1.73%
Performance through June 30, 2019
Quarterly (06/30/19) MTD 3 Month YTD 1 Year 3 Year 5 Year 10 Year Since Inception*
BESMX -0.32% -3.76% 2.10% -13.18% 5.33% 0.51% 7.23% 7.56%
Management Fee: 2.00%

The Predecessor Fund Inception: 10/31/2007. Fund Inception: 12/30/2015.

Total operating fund expense as of 03/01/2019: 4.00% (Gross), 2.24% (Net). 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, 2020.  This operating expense limitation agreement can be terminated only by, or with the consent of, the Board of Trustees.  The Adviser is permitted to receive reimbursement from the Fund for fees it waived and Fund expenses it paid, subject to the limitation that: (1) the reimbursement for fees and expenses will be made only if payable within three years from the date the fees and expenses were initially waived or reimbursed; and (2) the reimbursement may not be made if it would cause the expense limitation in effect at the time of the waiver or currently in effect, whichever is lower, to be exceeded.

Performance shown here includes performance for the Fund’s predecessor hedge fund (“Predecessor Fund”). The Predecessor Fund’s performance was used from 10/31/2007 to 12/29/2015; The Fund’s performance was used from 12/30/2015 to 06/30/2019. The Predecessor Fund’s prior performance 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 Fund was not subject to sales loads that would have adversely affect performance.

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 informational purposes only, are not reflective of any investment, nor are they professionally managed. 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. There is no guarantee that any investment strategy will achieve its objectives, generate profits, or avoid losses.

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