Preserver Funds | Investment Philosophy

Alternative Investment Strategies

Alternative investment strategies are investment strategies that are not intended to correlate with the performance of the general equity and fixed income markets. The alternative investment strategies that the Adviser principally employs to manage the Fund’s portfolio are described below.

Event Driven

Seeks to capitalize on the effect of events on the value of equity and/or fixed income securities by purchasing those securities whose value is expected to increase due to an anticipated event. Securities subject to this strategy may include equity and fixed income securities of distressed companies and companies subject to potential mergers as well as companies initiating spin-offs, restructurings and recapitalizations.

Structured Credit

Involves the purchase of residential and commercial mortgage-backed securities as well as certain other asset-backed securities that the Adviser believes are undervalued.

Tactical Trading

The tactical trading strategy attempts to capitalize on increases and declines in the value of equity and/or fixed income securities in response to economic and political changes such as changes in interest rates, exchange rates, liquidity and political leadership.

Fundamental Long-Only Strategy

In addition to the alternative investment strategies discussed above, the Adviser may employe a fundamental long-only strategy involving the purchase of Equity and Fixed Income Securities that the Adviser or a Sub-Adviser believes are undervalued based on traditional fundamental analysis. For more information on the Fund’s strategy, please contact the Advisor, PreserverPartners, LLC at info@preserverpartners.com or 901-755-4737.

The value of the fund’s shares, when redeemed, may be worth more or less than their original cost. All investments involve risks, including loss of principal. There is no guarantee that any investment strategy will be successful or achieve any particular results. The value of some mortgage-backed securities may be particularly sensitive to changes in prevailing interest rates, and although the securities are generally supported by some form of government or private insurance, there is no assurance that private guarantors or insurers will meet their obligation. Bonds are affected by a number of risks, including fluctuation in interest rates, credit risks, and prepayment risk. In general, as prevailing interest rates rise, fixed income securities prices will fall. The value of securities in companies involved in a special situation can perform differently from the market as a whole. Many corporate events do not as planned. This can ultimately reduce the price of a company’s stock and cause an event-driven investor to lose money.