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USA Mutuals Navigator Fund 2017-10-23T19:22:01+00:00

Portfolio Manager

Steve Goldman
Steve Goldman

Mr. Steven Goldman is the primary portfolio manager of the Navigator Fund.  Prior to joining USA Mutuals, Mr. Goldman founded Goldman Management Inc. in 1985 and continues today as its sole Principal and owner. Mr. Goldman also served as a Partner and the Chief Market Strategist of Weeden & Company, LP, a nearly century old, mid-sized equity broker-dealer specializing in execution services for institutional clients. Steven held that position for 25 years until he left in September 2011 to focus solely on Goldman Management, although he still retains his equity ownership in Weeden.  His career began at Phillips Appel & Walden as a stock broker and research analyst.  Mr. Goldman graduated from the University of Maryland with a BS in 1979, concentrating in economics and finance and received his M.B.A. from the Zicklin School of Business at Baruch College, a part of the City University of NY.

Firm Description

With a history spanning three decades, Dallas based USA Mutuals has long been a provider of alternative investment strategies to both the institutional and retail marketplaces. Founded in 1994, the company launched with a simple mandate: Create an environment in which the company’s goals and expectations are truly aligned with our investors.

Our stable of fund offerings has been methodically assembled in concert with that mandate. It contains carefully selected Proprietary and Sub-Advised strategies that have historically demonstrated the ability to navigate a variety of market cycles, including the most difficult ones. Armed with a thorough understanding of the performance expectations for each of these investment philosophies, we work diligently to correctly pair them with the portfolio needs of our clients. This alignment of expectations is vital to all aspects of our approach. We firmly believe that the success of USA Mutuals is rooted in the satisfaction of the thousands of investors we’ve had the privilege to serve.

Strategy

The Fund, a diversified investment company, pursues its investment objective by employing a discretionary trading strategy which attempts to tactically allocate exposure levels in the U.S. stock market. Specifically, the Advisor invests the portfolio in long and short equity stock index futures, primarily on the S&P 500® Index; however, other equity indices may be invested in from time to time.  The Fund’s investment methodology, based on the portfolio manager’s proprietary quantitative indicators and models, begins with a top-down analysis of a broad array of fundamental and statistical data relating to the stock market. This data can be classified into five distinct categories:

  1. Market valuation: Whether the market is over-valued, under-valued or neutral
  2. Investor sentiment: Investor expectations about the market, used as a contrary measure
  3. Market intervals:  Market momentum, market structure and seasonal factors
  4. Monetary environment:  Interest rates and macroeconomic circumstances
  5. Macro Factors:  External influences that may impact U.S. stock indexes

An assessment of these categories determines the amount of long or short equity allocation exposure in the Fund. This equity exposure generally ranges from 30% short to 130% long. The Fund implements short positions by using futures, or through short sales of any instrument that the Fund may purchase for investment. For example, the Fund may enter into a futures contract pursuant to which it agrees to sell an asset (that it does not currently own) at a specified price at a specified point in the future. This gives the Fund a short position with respect to that asset.

The Fund may use leverage through derivatives. As a result, the sum of the Fund’s investment exposures may at times exceed the amount of assets invested in the Fund, although these exposures may vary over time.

The Fund invests only in stock index futures in pursuing its investment objective. The risk profile of stock index futures is controlled and monitored through the oversight and regulations of the exchanges. The Fund is in compliance with the requirements of the exchanges and regulatory agencies in regard to its derivatives trading.

HOW TO INVEST

Performance At A Glance

QUARTER-END PERFORMANCE AS OF 9/30/2017
3 Months 1 Year 3 Year 5 Year 10 Year Since Inception*
USA Mutuals Navigator Fund Inst. Class 3.70% 14.81% 7.01% 9.83% 8.85% 12.10%
S&P 500 Index 4.48% 18.61% 10.81% 14.22% 7.44% 7.41%
Morningstar Tactical Allocation Category 3.09% 10.10% 3.66% 4.50% 3.33% 4.91%

*Inception Date of Navigator: 2/1/2002
Gross Expense Ratio Inst. Class is 2.75%
Net Expense Ratio Inst. Class is 1.99%
Contractual fee waivers through 7/31/19.

Performance data quoted represents past performance; past performance 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.

Simultaneous with the commencement of the Fund’s investment operations on October 6, 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 Partnership are audited. The Predecessor Partnership was not registered under the 1940 Act, and was 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 its performance. On a going forward basis after October 13, 2017, the Fund’s performance 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 Partnership. Please refer to the Financial Statements section of the Fund’s SAI to review additional information regarding the Predecessor Partnership.

Morningstar Tactical Allocation Category -Tactical Allocation portfolios seek to provide capital appreciation and income by actively shifting allocations across investments. These portfolios have material shifts across equity regions, and bond sectors on a frequent basis. To qualify for the tactical allocation category, the fund must have minimum exposures of 10% in bonds and 20% in equity. Next, the fund must historically demonstrate material shifts in sector or regional allocations either through a gradual shift over three years or through a series of material shifts on a quarterly basis. Within a threeyear period, typically the average quarterly changes between equity regions and bond sectors exceeds 15% or the difference between the maximum and minimum exposure to a single equity region or bond sector exceeds 50%.

S&P 500 Index is considered to be generally representative of the U.S. large capitalization stock market as a whole. You cannot invest directly in an index. Unmanaged index returns do not reflect fees, expenses or sales charges.