Through our fundamental, value-oriented investment process, we aim to buy securities of predominantly well-financed companies that trade at substantial discounts to our conservative estimates of intrinsic value. The portfolio is unconstrained by considerations relating to geography, industry, and index, resulting in a portfolio that is built from the bottom up and based on the best absolute value opportunities currently available. We believe that this investing discipline provides investors with a unique portfolio, long term price appreciation potential, and mitigated downside risks.
Focus on well-capitalized companies. We believe that companies with well-capitalized balance sheets have an enhanced ability to survive difficult periods and thrive over the long-term, providing us the opportunity to achieve higher valuations and compound value over the long term.
Opportunistic mandate. We have significant flexibility in terms of where the Fund can invest and tend to invest in less-followed companies. We have the ability to invest across the capital structure, allowing us to take advantage of opportunities that are unavailable to equity-only funds.
Bottom-up portfolio construction. We build the portfolio completely from the bottom up, not based on any Index. Because of this, our portfolio’s overlap with indices tends to be very low and country and sector exposures tend to be very different from the Index and our competitors.
Concentrated portfolio. The Fund generally has a concentrated portfolio of thoroughly researched opportunities, which allows us to focus on our highest conviction ideas and can result in a portfolio and performance that is significantly different from most Indices.
Long -term investment horizon. We are patient, long-term investors. We seek to take advantage of significant stock price declines due to poor near-term business results, focusing instead on the long-term intrinsic value of the business and its underlying assets.
Flexibility to invest when opportunities are most compelling. Our mandate allows us to hold a sizeable cash position. We believe that holding cash at times when underlying valuations are elevated provides us with the ability to act quickly when market sentiment swings to the other extreme and short-term market disruptions provide compelling opportunities from panicked sellers.
Copyright Moerus Capital Management, 2021
Investing involves risk, including possible loss of principal. Equity securities are subject to market, economic and business risks that may cause their prices to fluctuate. Investments made in small and mid-capitalization companies may be more volatile and less liquid due to limited resources or product lines and more sensitive to economic factors. Fund investments may be concentrated in a particular country geographic region, sector, industry, or group of industries, and the value of Fund shares may rise and fall more than more diversified funds. Foreign investing involves social and political instability, market illiquidity, exchange-rate fluctuation, high volatility and limited regulation risks. Emerging markets involve different and greater risks, as they are smaller, less liquid and more volatile than more developed countries. Frontier market countries generally have smaller economies and less developed capital markets than even traditional emerging markets, and, as a result, the risks of investing in emerging market countries are magnified in frontier market countries. Currency risk is the risk that the values of foreign investments may be affected by changes in the currency rates or exchange control regulations. Significant investments in cash or cash equivalents may run the risk that the value of the cash account, including interest, will not keep pace with inflation. Please see the prospectus for details of these and other risks.
Foreside Fund Services, LLC, Distributor.
Investors should carefully consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. This and other important information about the Funds is contained in the prospectus, which can be obtained by calling 1-844-MOERUS1 or visiting http://moerusfunds.com. The prospectus should be read carefully before investing.