Download deep value fund

USA MUTUALS|CARBON BEACH
DEEP VALUE FUND
Fund Update as of December 31, 2016
The USA Mutuals/Carbon Beach Deep Value Fund is designed for
The investment objective of the Fund is
long-term capital appreciation.
• Emphasis on identifying 'deep value'
stocks: those enduring difficult
business conditions and which we
believe are likely to recover, and, in
particular, those with impending
catalytic corporate events.
• Favor companies with cash-rich
balance sheets and businesses with
strong operating earnings.
investors seeking to capture better long-term risk-adjusted returns than
the S&P 500 Index by investing in ‘deeply’ undervalued or out-of-favor
companies including those undergoing transformative corporate events.
Institutional Class
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Morningstar Category²
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S&P 500 TR Index¹
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Institutional Class
• The Fund seeks to achieve its
investment objective by investing
primarily in equity and equity-related
securities of ‘deeply’ undervalued or
out-of-favor companies including
those undergoing transformative
corporate events (“special situations”).
• The manager utilizes a bottom-up,
fundamental research process to
identify companies that possess a
combination of characteristics that
have shown the potential to generate
above-average returns with an
emphasis on those possessing deep
undervaluation and near-term
catalysts.
• Once a potential opportunity is
identified, the manager seeks to
determine the optimal security type to
allocate including; equity, options,
LEAPS, warrants etc., and may take a
long or short position.
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Morningstar Category
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S&P 500 TR Index
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*Inception: 30/12/2016 (Institutional)
Performance data quoted represents past performance and 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. Performance
data current to the most recent month end may be obtained by calling 1-866-264-8783. Short-term performance is not a
good indicator of the fund's future performance, and an investment shot not be made based solely on returns.
The net expense ratio for the fund is 1.74%, the gross expense ratio is 3.16%. Contractual fee waiver
through 12/30/17.
Assured Guaranty Ltd.
20.61%
16.38%
Humana, Inc.
8.32%
6.10%
6.00%
Benchmark Electronics, Inc.
Aspen Insurance Holdings Ltd.
Finance
3.14%
3.00%
Five Prime Therapeutics
1.76%
1.73%
1.72%
1.60%
Wholesale Trade
1.58%
Universal Corporation
1.58%
Construction
1.55%
1.51%
SK Telecom Co. Ltd. (ADR)
1.57%
Manufacturing
Health/Medical Insurer
Retail Trade
Telecommunications
Insurance
Mining, Oil & Gas Extraction
Real Estate
Employment Services
Air Transportation
*The minimum initial amount of investment in the Fund
is $100 for retirement accounts and $2,000 for other
types of accounts.
23.93%
16.38%
25.93%
Financial Re-Insurance
1.40%
1.29%
Argan, Inc.
Par Pacific Holdings, Inc.
The Greenbrier Companies
4.53%
2.83%
*Fund holdings and sector allocations are subject to
change and should not be considered a
recommendation to buy or sell any security. Industry
Allocation excludes cash or cash instruments.
1. The S&P 500 Total Return Index® (“S&P 500 TR”) is considered to be generally representative of the U.S.
large capitalization stock market as a whole. You cannot invest directly in an index.
2. The Morningstar Long Short Equity Category is assigned to Fund’s with portfolios that hold sizeable stakes
in both long and short positions in equities and related derivatives.
USA MUTUALS|CARBON BEACH
DEEP VALUE FUND
Fund Update as of December 31, 2016
USA Mutuals Advisors, Inc. is the Fund’s investment advisor. Carbon Beach Asset
Management, LLC, is the Fund’s sub-advisor.
Tobias Carlisle
Portfolio Manager
About USA Mutuals
USA Mutuals Advisors, Inc. is a
privately owned investment manager
based in Dallas, Texas. As Advisor to
a Multiple Series Trust, the firm offers
a selection of boutique “Core
Alternative” mutual funds spanning a
variety of asset classes.
Mr. Carlisle is a Founder and Managing Partner of Carbon Beach Asset
Management LLC, and serves as the Firm’s Chief Investment Officer. Mr.
Carlisle is a graduate of the University of Queensland in Australia with
degrees in Law and Business (Management), and the author of the
websites The Acquirer’s Multiple® and Greenbackd, and the books;
Concentrated Investing: Strategies of the World’s Greatest Concentrated Value
Investors (2016, Wiley Finance), Deep Value: Why Activists Investors and Other
Contrarians Battle for Control of Losing Corporations (2014, Wiley Finance),
and Quantitative Value: A Practitioner’s Guide to Automating Intelligent
Investment and Eliminating Behavioral Errors (2012, Wiley Finance).
Colin Macintosh
Portfolio Manager
Mr. Macintosh is a Founder and Managing Partner of Carbon Beach Asset
Management LLC, and serves as the Firm’s Chief Executive Officer. Mr.
Macintosh has spent over 25 years investing and working in the financial
marketplace. He was a sales executive at UBS, Commerzbank and RBSGreenwich Capital Mgmt in NYC, London and Greenwich CT. He advised
hedge funds on convertible/high yield bonds, equity derivatives, CDS, and
CDO/CLO arbitrage strategies. He is a graduate of Syracuse University,
Maxwell School of Citizenship, with a degree in Economics (’89).
The USA Mutuals Funds are distributed by Quasar Distributors, LLC.
RISK CONSIDERATIONS:
The Fund's investment objectives, risks, charges and expenses must be considered carefully before investing. The statutory and summary
prospectuses contain this and other information about the investment company, and they may be obtained by contacting 866.264.8783 or
going to www.usamutuals.com. Read it carefully before investing.
Mutual fund investing involves risk; principal loss is possible. The Carbon Beach Deep Value Fund invests in smaller companies, which involve
additional risk such as limited liquidity and greater volatility. Event driven investments carry the risk that expected events or transactions may not
occur as anticipated or unexpected events could adversely impact an investment. Investments in foreign securities involve greater volatility and
political, economic and currency risks and differences in accounting methods. The fund may make short sales of securities, which involves the risk
that losses may exceed the original amount invested. The fund may invest in derivatives which can be volatile and involve various types and
degrees of risks, and, depending upon the characteristics of a particular derivative, suddenly can become illiquid. Options may be more volatile than
investments directly in the underlying securities, involve additional costs and may involve a small initial investment relative to the risk assumed.
The fund may invest in ETFs which will fluctuate based on changes in the net asset value as well as changes in the supply and demand of its
shares in the secondary market. It is also possible that an active secondary market of an ETF's shares may not develop and market trading in the
shares of the ETF may be halted under certain circumstances. The fund will bear its share of expenses and the underlying risks of investments in
ETFs and other investment companies. Value investing involves the risk that an investment's intrinsic value may not be recognized by the market.