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Masters’ Select Focused Opportunities Fund seeks superior
long-term performance relative to appropriate large-cap
benchmarks and its peer group of large-cap funds. Each
of the three managers separately runs a portion of the
Fund’s assets by independently managing a portfolio comprised of between 5 and 7 of their highest conviction stocks. The fund is “non-diversified,” which means the securities laws do not limit the percentage of assets that it may invest in any one company. The Advisor believes that concentrating the Fund’s portfolio in a select, limited number of securities allows the sub-advisors’ highest conviction ideas to have a meaningful impact on the Fund’s performance. For example, with three sub-advisors, it could own as few as 15 securities. The Advisor believes limiting the number of holdings improves the long-term return opportunity because the portfolio contains only the sub-advisors’ very highest-conviction ideas.
The Fund typically invests in the securities of large and mid-sized U.S. companies, although the managers may also invest in the securities of non U.S. companies. At times, securities of non U.S. companies may make up a material portion of the overall portfolio. The managers may also own securities of smaller companies though these are expected to be a lesser portion of the overall fund portfolio. In addition, to a limited extent, the Fund may also invest in distressed companies by purchasing securities of companies that are, or are about to be, involved in reorganizations, financial restructurings, or bankruptcy. The Fund’s investments in distressed companies typically involve the purchase of high-yield bonds, bank debt or other indebtedness of such companies.
Masters’ Select Focused Opportunities Fund is a non-diversified fund, which means that it may concentrate more of its assets in fewer individual holdings than a diversified fund. Though primarily an equity fund, the fund may invest a portion of its assets in securities of distressed companies. Debt obligations of distressed companies typically are unrated, lower rated, in default or close to default and may become worthless. Though not an international fund, the fund may invest in foreign securities. Investing in foreign securities exposes investors to economic, political and market risks and fluctuations in foreign currencies. Though not a small-cap fund, the fund may invest in the securities of small companies. Small-company investing subjects investors to additional risks, including security price volatility and less liquidity than investing in larger companies. |
