Penn Capital Managed Alpha SMID Cap Equity Fund
| Nav | Daily $ Change | Daily % Change | Year To Date | Inception Date | Share Class |
|---|---|---|---|---|---|
|
$16.42
|
^$0.27
|
^1.67%
|
13.01%
|
|
Institutional
|
Overview
The Managed Alpha SMID Cap Equity Fund seeks to provide catalyst driven capital appreciation and uncorrelated alpha. The fund utilizes a high conviction, private equity approach to the public market with Penn Capital’s Complete Capital Structure Analysis®. The Fund seeks to exploit return opportunities by balancing intensive bottom up equity analysis and top down credit risk analysis. The Fund targets small to mid-capitalization companies, employing leading credit indicators to harvest inefficiencies that capture opportunistic upside and conservative downside factors.
Effective October 31, 2017 the Penn Capital Small/Mid Cap Equity Fund was renamed the Penn Capital Managed Alpha SMID Cap Equity Fund. The fund's investment objective and strategy did not change.
Objective
The Penn Capital Managed Alpha SMID Cap Equity Fund seeks to provide capital appreciation.
Strategy
The Fund generally intends to invest in 50 to 90 securities identified by Penn Capital’s fundamental, bottom-up value driven research. The portfolio construction process involves both quantitative and qualitative fundamental analysis.
Investment Type Examples
Common stock, preferred stock, convertible securities, and other investment companies including exchange traded funds (ETFs), American Depository Receipts (ADRs), and real estate investment trusts (REITs).
Industry Examples
Consumer Discretionary, Consumer Staples, Energy, Financials, Healthcare, Industrials, Information Technology, and Materials.
Performance
| AS OF 01/31/2021 Ticker: PSMPX | CUSIP: 707269106 |
MTD | QTD | YTD | 1 Year | 3 Year | 5 Year | 10 Year | Since Inception |
|---|---|---|---|---|---|---|---|---|
|
Penn Capital Managed Alpha SMID Cap Equity Fund (Inst)
|
-1.45%
|
-1.45%
|
-1.45%
|
9.32%
|
7.22%
|
14.41%
|
n/a |
10.63%
|
|
Russell 2500 Index
|
2.45%
|
2.45%
|
2.45%
|
25.48%
|
11.11%
|
16.11%
|
n/a |
12.79%
|
| AS OF 01/31/2021 Ticker: PSMPX | CUSIP: 707269106 |
|
|---|---|
| Penn Capital Managed Alpha SMID Cap Equity Fund (Inst) | |
| MTD | -1.45 |
| QTD | -1.45 |
| YTD | -1.45 |
| 1 Year | 9.32 |
| 3 Year | 7.22 |
| 5 Year | 14.41 |
| 10 Year | n/a |
| Since Inception
|
10.63 |
| Russell 2500 Index | |
| MTD | 2.45 |
| QTD | 2.45 |
| YTD | 2.45 |
| 1 Year | 25.48 |
| 3 Year | 11.11 |
| 5 Year | 16.11 |
| 10 Year | n/a |
| Since Inception
|
12.79 |
Investment Process
Step 1
Fundamental Financial Analysis
Penn Capital’s analysts and portfolio managers screen for companies with improving financial metrics to determine relative value.
Step 2
Qualitative Research
Penn Capital’s analysts and portfolio managers perform qualitative research to confirm relative value.
Step 3
Liquidity Outlook/Covenant Analysis
Penn Capital’s analysts and portfolio managers screen for liquidity issues and perform covenant analysis, bank loan availability and asset value analysis.
Step 4
Recommendation
Primary and secondary analysts and portfolio managers present best new idea(s) to entire team for evaluation and consideration.
Step 5
Decision Making
Two-step approval process requires approval first by the portfolio manager, and second by either the Director of Research or the Chief Investment Officer.
Step 6
Portfolio Construction
Penn Capital’s Equity Strategy Committee meets weekly to discuss macro-view and to determine sector allocations.
All portfolio managers combine expertise (credit and equity) to develop and apply a macro view
Fees & Expenses
Total Fund annual net operating expenses (after fee waiver/expense reimbursement) are: Institutional Class 1.06%.
Total Fund annual gross operating expenses (before waivers and expenses) are: Institutional Class 2.63%.
The Fund's advisor has contractually agreed to waive its fees and/or pay for operating expenses of the Fund to ensure that total annual fund operating expenses do not exceed 1.06% of the average daily net assets for the Institutional Class shares of the Fund, respectively. This agreement is in effect until October 30, 2018. The Fund’s advisor is permitted to seek reimbursement from the Fund of fees waived for a period of three years from the date of the waiver or payment to the extent it does exceed the expenses limits.
Portfolio Managers
Eric Green, CFA
Mr. Green began his career at Penn Capital in July 1997. As Director of Research, Mr. Green is responsible for guiding the firm’s day-to-day investment research process. He also serves as the Portfolio Manager for Penn Capital’s Small Cap and Mid Cap equity strategies and chairs Penn Capital’s Equity Strategy Committee. He is also a member of the firm’s Executive Committee which drives overall strategy and management of the firm.
Prior to joining Penn Capital, Mr. Green gained experience with the Federal National Mortgage Association, the Royal Bank of Scotland, and the United States Securities and Exchange Commission where he served as a financial analyst in the Division of Investment Management. Mr. Green is also Vice Chairman of the Board of Directors for the Anti-Defamation League (ADL), Mid-Atlantic Region and Co-Chairman of the ADL's 2018 Walk Against Hate.
He received a BSBA, Cum Laude, from American University and received an MBA from the Yale School of Management.
Joseph Maguire, CFA
Mr. Maguire began his career with Penn Capital in January 2005. He currently serves as a co-portfolio manager for Penn Capital’s Convertible strategy and is the portfolio manager for Penn Capital’s Small to Mid Cap Equity strategy. Prior to joining Penn Capital, he served as a senior audit associate for PricewaterhouseCoopers LLP, and conducted private equity research for AMS Inc. During graduate school, Mr. Maguire interned with Penn Capital’s investment team. Mr. Maguire received a BBA in Accounting from The College of William & Mary and a MBA from the Kenan-Flagler Business School at the University of North Carolina at Chapel Hill.
Richard Hocker
Mr. Hocker founded Penn Capital in 1987 and serves as Chief Investment Officer & Chief Executive Officer, guiding overall portfolio strategy. His investing and institutional non-investment grade corporate lending experience spans over forty years. While serving as a Partner for Delaware Investment Advisors (DIA) from 1977 to 1987, he was responsible for building the investment side of DIA’s fixed income operation. During this period, Mr. Hocker developed and managed one of the nation’s first high yield mutual funds, the Delchester High Yield Bond Fund. He also served as the first high yield bond manager for several institutional clients including General Motors, State of Vermont Teachers Retirement Association, and Colorado Fire and Police. Prior to DIA, Mr. Hocker trained as a corporate lender and supported key senior lenders at Provident National Bank, which is now PNC, a top 20 US Banking institution. He later rose to serve as head of the investment division. Mr. Hocker also founded and served as CEO of Covenant Bank, a NJ based regional bank which grew to 16 branches and $500mm in deposits before being acquired by Wachovia Corporation in 1997.
He and his wife, Marcia Hocker, are the founders of the Ethel Mae Hocker Foundation. The Ethel Mae Hocker Foundation provides educational opportunities to less fortunate, deserving Greater Philadelphia-area elementary and high school students. Mr. Hocker received both his BS in accounting and MBA in finance from the Kogod School of Business at American University.
Legal Disclaimers
All investments involve risk, including possible loss of principal. 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. The Fund invests in ETFs and is therefore subject to the same risks as the underlying securities in which the ETF invests as well as entails higher expenses than if invested into the underlying ETF directly. The value of convertible securities tends to decline as interest rates rise and, because of the conversion feature, tends to vary with fluctuations in the market value of the underlying securities. The Fund invests in foreign securities and ADRs, which involves certain risks such as currency volatility, political and social instability and reduced market liquidity.
1For standardized performance, click here
The performance data quoted here represents past performance. Past performance is no guarantee of future results. Investment return and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information quoted. To obtain performance information current to the most recent month-end please call 844-302-PENN (7366).
A redemption fee of 2.00% will be imposed on redemptions or exchanges of shares you have owned for 90 days or less.
BEFORE INVESTING YOU SHOULD CAREFULLY CONSIDER THE FUND’S INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES. THIS AND OTHER RELEVANT INFORMATION CAN BE FOUND IN THE PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION, COPIES OF WHICH MAY BE OBTAINED BY CALLING 844-302-PENN (7366) OR BY VISITING WWW.PENNCAPITALFUNDS.COM. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST.
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