Midwood Long/Short Equity Fund (MDWDX)

Objective


The strategy seeks to maximize long-term returns through a focused portfolio of long and short holdings primarily in small cap U.S. equities.

Strategy


The manager employs intensive diligence and a bottom-up strategy to identify long investments with superior business models, top management teams, and attractive long-term fundamentals, all at compelling valuations. On the short side, the manager looks for deteriorating businesses in challenging industries with clear negative catalysts that may precipitate stock price declines.

The Midwood Long/Short Equity Fund (MDWDX) is sub-advised by Midwood Capital Management LLC. Midwood managed a private partnership with the same strategy as MDWDX for more than 16 years.

Portfolio Management


   

      David E. Cohen                  Mark D. Henry

Contact


Patrick Mullin, CFA

Managing Director

Tel: 781-875-3185
patrick@cppinvest.com

Investors should carefully consider the investment objectives, risks, charges and expenses of the Midwood Long/Short Equity Fund. This is contained in the prospectus, which can be obtained by calling 1-877-244-6235. The prospectus should be read carefully before investing. The Midwood Long/Short Equity Fund is distributed by Matrix 360 Distributors, LLC, 4300 Shawnee Mission Parkway, Fairway, KS 66205.

The Fund employs a long-short investment strategy to attempt to achieve capital appreciation and manage risk by purchasing small-capitalization stocks believed to be undervalued and selling short small-capitalization stocks believed to be overvalued. Small-capitalization stocks are those companies with market capitalizations similar to companies in the Russell 2000 Index (the “Index”). The size of the companies in the Index changes with market conditions and the composition of the Index. The Adviser generally defines small-capitalization as between $152 million and $5 billion at the time of purchase. The Fund generally maintains a net long bias; however, it is anticipated that the Fund will have at least some short exposure at all times with a maximum of 75% of the Fund’s assets being shorted under normal market conditions. A fundamental element of the Fund’s strategy is its focus generally on areas of the U.S. equities market with the greatest inefficiencies where extensive research and analysis can seek to generate superior long-run performance with an emphasis on small-capitalization companies. The Sub-Adviser believes that the small-cap segment of the U.S. equities market is subject to structural inefficiencies and that its value oriented, fundamental research driven approach can yield proprietary information and insights about these small companies, which can lead to attractive long-term investment returns for the Fund. Notwithstanding the Fund’s intent to focus primarily on small-cap stocks, the Fund may from time to time also take advantage of investment opportunities in mid-cap and large-cap companies. The Fund may invest in small, less well known companies, which may be subject to more erratic market movements than large-cap stocks: foreign securities, which are subject to currency fluctuations and political, economic and market uncertainty; These risks may result in greater share price volatility. In addition, the use of leverage in an investment portfolio can magnify any price movements, resulting in high volatility and potentially significant loss of principal. This is an actively managed dynamic portfolio. There is no guarantee that any investment (or this investment) will achieve its objectives, goals, generate positive returns, or avoid losses. Crow Point Partners, LLC and Matrix 360 Distributors, LLC are not affiliated.