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Philosophy

OUR MISSION

“The commitment to creating an environment in which the company’s goals and expectations are truly aligned with our investors will represent the backbone of each strategic decision and the theme of each business day”

Built on a steadfast foundation of progressive investment theory, our philosophy endeavors to meet the goals of our investors in any economic cycle.    Perpetually striving to transform clearly defined expectations into successful and measurable results is the bedrock of our organization.

Manager Selection

Due Diligence

In constantly monitoring all corners of the institutional investment world, our management team seeks to identify uniquely talented and undiscovered investment managers that have compiled track records of success in their respective asset classes.   We believe that offering these strategies in a vehicle that emphasizes both transparency and daily liquidity is a benefit to all investors.  Furthermore, in aspiring to create a suite of strategies that are largely uncorrelated to each other, we hope to provide our clients the flexibility to employ one, several, or all of our funds as portfolio tools in addressing a variety of investment goals.

Although many factors are considered throughout the due diligence process, including asset class, investment style and market outlook, the backbone of our philosophy is represented in a set of core characteristics upon which we are unwilling to compromise:

  • A clearly defined risk management philosophy
  • Low or zero leverage
  • A repeatable investment process
  • A track record of Alpha generation
  • Low correlation to economic cycles
  • A comprehensive and unyielding Code of Ethics

The Relationship between Expectation and Results

At USA Mutuals, we believe that truly understanding the basic expectations and behavior of any investment strategy is paramount to its proper positioning within a portfolio.  It is all too common in today’s alternative investment universe to encounter poorly defined or miscategorized investment objectives, both intentionally and unintentionally.  Many funds attempt to be all things to all investors.  Consequently, improperly utilized strategies can lead to unexpected results.  This doesn’t necessarily mean a strategy is ineffective, it may simply mean it was incorrectly positioned relative to its actual attributes rather than its perceived attributes.  This is an eminently fixable problem.

We aim to clearly define the fundamental expectations of each of our strategies in various types of market cycles. Transparent and accurate expectations evolve into predictable risk management tools, and predictable risk management tools are the foundation of our portfolio construction philosophy.

Performance At A Glance

QUARTER-END PERFORMANCE AS OF 9/30/2017
Fund 1 Year 3 Years 5 Years 10 Years Since Inception*
USA Mutuals Vice Fund Class A w/ Load 8.17% 7.32% 11.43% 12.97%
USA Mutuals Vice Fund Class A w/o Load 14.78% 9.47% 12.76% 14.13%
USA Mutuals Vice Fund Class C w/ Load 12.96% 8.63% 11.90% 13.28%
USA Mutuals Vice Fund Class C w/o Load 13.91% 8.63% 11.90% 13.28%
USA Mutuals Vice Fund Inst. Class 15.06% 9.72% 7.73%
USA Mutuals Vice Fund Investor Class 14.75% 9.46% 12.75% 5.93% 10.33%
USA Mutuals/WaveFront Hedged Quantamental Opportunities Fund Inst. 0.95% 0.97% 4.18% 4.52% 6.46%
USA Mutuals Navigator Fund Inst. Class 14.81% 7.01% 9.83% 8.85% 12.10%
DAILY NAV as of 11/17/17
Fund NAV Daily Change
USA Mutuals Vice Fund Class A $31.08 $-0.01
USA Mutuals Vice Fund Class C $30.47 $-0.01
USA Mutuals Vice Fund Inst. Class $31.57 $-0.01
USA Mutuals Vice Fund Investor Class $31.21 $-0.01
USA Mutuals/WaveFront Hedged Quantamental Opportunities Fund $10.05 $-0.01
USA Mutuals Navigator Fund Inst. Class $20.17 $0.01

*Inception date of Vice is 8/30/2002 (Investor), 12/08/2011 (Class A&C), 4/1/2004 (Institutional), Navigator: 2/1/2002, and WaveFront: 2/28/2002

Gross Expense Ratios: Navigator Inst. Class: 2.75 % , Vice : Inst – 1.27%, Investor- 1.49%, A – 1.49%, C- 2.24%, WaveFront Inst. Class : 2.21%

Net Expense Ratios: Navigator Inst. Class: 1.99 % , Vice : Inst – 1.24%, Investor- 1.49%, A – 1.49%, C- 2.24%, WaveFront Inst. Class: 1.30%

Contractual fee waivers – Navigator through 7/31/19, Vice through 7/31/18, WaveFront through 7/31/19.

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. In addition, performance for Class A shares may reflect a CDSC of 1.00% if certain conditions apply. Please see the fund prospectus for further details. Performance shown including load reflects the Class A Maximum Sales Charge of 5.75% and Class C Maximum Sales Charge of 1.00% as a on shares redeemed within 12 months of purchase.

Simultaneous with the commencement of the Fund’s investment operations on October 2, 2017, BC Capital Investors, L.P., a limited partnership managed by the Sub-Advisor (the “Predecessor Partnership”), converted into the Institutional Class shares of the Fund by contributing all of its assets to the Fund in exchange for Institutional Class shares of the Fund. From its inception through October 2, 2017, the Predecessor Partnership maintained investment policies, objectives, guidelines, and restrictions that were, in all material respects, equivalent to those of the Fund, and at the time of the conversion, the Predecessor Partnership was by the same portfolio managers as the Fund and such portfolio managers managed the Predecessor Partnership since its inception in a manner that, in all material respects, complied with the investment guidelines and restrictions of the Fund.  The Fund’s performance for periods before October 2, 2017 is that of the Predecessor Partnership and includes the expenses of the Predecessor Partnership.  The performance includes gains or losses plus income and the reinvestment of all dividends and interest.  All returns reflect the deduction of all actual fees and expenses, paid by the Predecessor Partnership, without provision for state or local taxes. If the Predecessor Partnership’s performance was adjusted to reflect the projected first year expenses of the Fund, the performance for all periods would have been lower than that stated.

Simultaneous with the commencement of the Fund’s investment operations on October 13, 2017, the Goldman Navigator Fund, L.P., a limited partnership managed by Mr. Steven Goldman, the Fund’s portfolio manager (the “Predecessor Partnership”), converted into the Institutional Class shares of the Fund by contributing all of its assets to the Fund in exchange for Institutional Class shares of the Fund. From its inception in 2002 through 2012, the Predecessor Partnership was managed as a proprietary account of the portfolio manager, and was converted to a limited partnership in 2012. From its inception in 2002 through October 13, 2017, the Predecessor Partnership maintained investment policies, objectives, guidelines, and restrictions that were, in all material respects, equivalent to those of the Fund, and at the time of the conversion, the Predecessor Partnership was managed by the same portfolio manager as the Fund. Such portfolio manager managed the Predecessor Partnership since its inception in a manner that, in all material respects, complied with the investment guidelines and restrictions of the Fund. The Fund’s performance for periods before October 13, 2017 is that of the Predecessor Partnership and includes the expenses of the Predecessor Partnership. The performance includes gains or losses plus income and the reinvestment of all dividends and interest. All returns reflect the deduction of all actual fees and expenses, paid by the Predecessor Partnership, without provision for state or local taxes. If the Predecessor Partnership’s performance was adjusted to reflect the projected first year expenses of the Fund, the performance for all periods would have been lower than that stated.

The performance returns of the Predecessor Partnerships are audited. The Predecessor Partnerships were not registered under the 1940 Act, and were not subject to certain investment limitations, diversification requirements, and other restrictions imposed by the 1940 Act and the Internal Revenue Code of 1986, as amended (the “Code”), which, if applicable, may have adversely affected the performance. On a going forward basis after October 13, 2017, and October 16, 2017,  the Navigator Fund and WaveFront Hedged Quantamental Opportunities Fund  performance, respectively,  will be calculated using the standard formula set forth in rules promulgated by the SEC, which differs in certain respects from the methods used to compute total returns for the Predecessor Partnerships.

OUR OFFICES

USA Mutuals

700 North Pearl Street
Suite 900
Dallas, TX 75201
735 North Water Street
Suite 541
Milwaukee, WI 53202

CONTACT