WHITEBOX MARKET NEUTRAL EQUITY FUND
(formerly Whitebox Long Short Equity Fund)
The investment objective of Whitebox Market Neutral Equity Fund (the "Fund") is to provide investors with a positive return regardless of the direction and fluctuations of the US equity markets generally.
In pursuing the Fund’s investment objective, the Adviser will construct a portfolio principally comprised of long and short positions of US listed common stock (including American Depository Receipts) with the goal of exploiting inefficiencies in the equity markets. The Adviser will utilize a mix of quantitative and qualitative investment analyses to select securities for the portfolio. The quantitative analysis will rely on multiple proprietary equity models that the Adviser has developed to identify stocks it believes are likely to outperform or underperform the market over a targeted time period. The Adviser will endeavor to manage the Fund’s portfolio as approximately “beta neutral.” Beta is a measurement of a stock’s expected volatility relative to the market.
REASONS TO CONSIDER INVESTING
- Downside Management: The Adviser seeks to limit exposure to downside risk by running a beta neutral portfolio designed to capitalize on arbitrage opportunities in the equity markets.
- Non-Correlation: The Adviser seeks to generate total return that is not correlated to traditional asset classes.
- Experienced, Talented Investment Team: The team possesses over a decade of experience investing in long short equity strategies for investors.
Investing in the Fund involves risk, including the possible loss of principal. An investment in the Fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or other governmental agency. Fund investors may lose part or all of their investment in the Fund.
There can be no guarantee that the Fund’s investment objective will be achieved, and an investment in the Fund may not perform as well as
other investments. The value of investments in the Fund, as well as the amount of return received on an investment, may fluctuate significantly from day to
day and over time. Past performance does not guarantee future results. An investment in the Fund is subject to various risks, including but not limited to:
The Fund’s prospectus includes an expanded description of these and other risks. Please read it carefully before investing.
- Active and Frequent Trading. Active and frequent trading of securities will increase the Fund’s portfolio turnover rate and generate higher transaction
- Debt Securities. Debt issuers may be unable to make timely payments of principal and interest. The value of debt securities generally falls when
interest rates rise.
- Derivatives. Derivatives (including swaps, options, futures and forward contracts) can involve valuation, volatility, liquidity, leverage and other
risks. The prices of derivatives may move in unexpected ways, especially in abnormal market conditions. Hedging may not effectively reduce risk and can
reduce or eliminate gains.
- Equity Securities. The price of equity securities will fluctuate and can be volatile. Equity securities are subordinated to debt in a company’s capital
- Exchange-Traded Funds. In addition to bearing Fund expenses, shareholders indirectly bear the expenses of the underlying ETFs in which the Fund invests.
- Leverage. Use of leverage may cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or
to meet any required asset segregation requirements. Fluctuations in the value of the Fund’s portfolio will be magnified when the Fund uses leverage.
- Non-US Securities. Non-US issuers may not be subject to accounting, auditing and financial reporting standards and practices as stringent as those in
the United States. Nationalization, expropriations or confiscatory taxation, currency blockage, political changes or diplomatic developments could
result in investment losses.
- Short Sales. Short sales involve both costs and risks. The risk for loss on short selling is greater than the original value of the securities sold
short because the price of the borrowed security may rise without limit, thereby increasing the price at which the security must be purchased.