The Fund seeks to maximize total return, consisting of capital appreciation and current income.
Principal Investment Strategies:
The Fund follows a value oriented strategy. The Fund invests in, and may shift frequently among, a wide range of asset classes and market sectors. These include foreign and domestic equity and debt securities, money market instruments, and derivatives. The Fund is classified as a diversified portfolio, but is not managed as a balanced portfolio. As a result, the Adviser has considerable flexibility in selecting the types of investments and market sectors for investment of the Fund's assets and is not required to maintain any minimum portion of the Fund's assets in any particular asset class. Thus, during the course of a business cycle, for example, the Fund may invest solely in equity securities, debt securities or money market instruments, or in a combination of these classes of investments. For each asset class, the Adviser uses a valuation approach to investing by examining the overall economic picture, the characteristics of individual securities, historical market information and technical analysis to determine securities which it believes are overvalued or undervalued. The Fund may use either long or short positions in pursuit of its objective. The Fund's investment performance will depend in large part on the asset allocation selected by the portfolio managers.
Currently, the portfolio managers view the U.S. equity markets as highly overvalued by most traditional measurements, and have positioned the Fund to seek profits in a major U.S. equity market decline through a variety of investment practices, including puts and short sales, together with its investments in short-term fixed income securities. The Fund is flexibly managed, however, and the Adviser may, without notice, change the Fund's asset positioning quickly and decisively.
The Fund may invest in a wide range of assets. Equity securities in which the Fund may invest include common stock, preferred stock (including convertible preferred stock), warrants and depository receipts. Debt securities in which the Fund may invest include U.S. corporate debt, U.S. government and agency debt and foreign sovereign and other debt securities (including sovereign and other debt securities from emerging market issuers). The Fund may invest up to 65% of its assets in the equity and debt securities of foreign issuers. The Fund may also invest in debt securities convertible into shares of common stock. The Fund's debt securities may have fixed, floating or variable rates of interest.
The Fund may make short sales, which are transactions in which the Fund sells a security it does not own, with the expectation that the security's value will decline. To complete a short sale, the Fund must borrow the security to make delivery, and then replace the security by purchasing it. The total market value of all the Fund's short sales may not exceed 50% of the value of the Fund's net assets. In addition, the Fund's short sales of the securities of any single issuer listed on a national securities exchange may not exceed 5% of the value of the Fund's net assets, and the Fund may not sell short more than 5% of the outstanding securities of a single class of securities of an issuer. The Fund may enter into short sales of securities the Fund owns, but such sales cannot exceed 5% of the value of the Fund's net assets. The Fund's compliance with these limitations is calculated at the time a transaction is effected.
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Comstock Capital Value Fund