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.
The Penn Capital Managed Alpha SMID Cap Equity Fund seeks to provide capital appreciation.
The Fund generally intends to invest in 50 to 90 securities identified by the Advisor’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).
Consumer Discretionary, Consumer Staples, Energy, Financials, Healthcare, Industrials, Information Technology, and Materials.
|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)
Russell 2500 Index
|AS OF 01/31/2021
Ticker: PSMPX | CUSIP: 707269106
|Penn Capital Managed Alpha SMID Cap Equity Fund (Inst)|
|Russell 2500 Index|
Fundamental Financial Analysis
Penn Capital’s analysts and portfolio managers screen for companies with improving financial metrics to determine relative value.
Penn Capital’s analysts and portfolio managers perform qualitative research to confirm relative value.
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.
Primary and secondary analysts and portfolio managers present best new idea(s) to entire team for evaluation and consideration.
Two-step approval process requires approval first by the portfolio manager, and second by either the Director of Research or the Chief Investment Officer.
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 2.14%.
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, 2021. 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.
Joseph Maguire, CFA
Mr. Maguire has been with Penn Capital since 2005. As Director of Research, he is responsible for guiding the firm’s day-to-day global investment research process. Mr. Maguire chairs the Equity Risk Committee and serves as a Portfolio Manager for Penn Capital’s Small to Mid Cap equity strategy and as a Co-Portfolio Manager for the firm’s Convertible strategy.
Prior to joining Penn Capital, he was a senior audit associate for PricewaterhouseCoopers LLP, and conducted private equity research for AMS Inc. He received a BBA in Accounting from The College of William & Mary and an MBA from the Kenan-Flagler Business School at the University of North Carolina at Chapel Hill.
Eric J. Green, CFA
Mr. Green has been with Penn Capital since 1997. As CIO of Equity, he is responsible for guiding the firm’s equity strategies. Mr. Green serves as a Senior Portfolio Manager for Penn Capital’s Small Cap, Small to Micro Cap, and Mid Cap equity strategies. He is also a member of the firm’s Executive Team, which oversees the firm’s overall corporate strategy and management.
Prior to joining Penn Capital, Mr. Green was 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 an MBA from the Yale School of Management.
Mr. Hocker founded Penn Capital in 1987 and serves as Chief Executive Officer, guiding overall portfolio strategy. His investing and institutional non-investment grade corporate lending experience spans over 40 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 Bank, 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 $500m in deposits before being acquired by First Union in 1997.
He and his wife, Marcia Hocker, are the founders of the Ethel Mae Hocker Foundation which provides scholarship opportunities to less fortunate, deserving Greater Philadelphia-area elementary and high school students who have demonstrated leadership abilities, academic success, commitment to the community, and need financial support. Mr. Hocker received both his BS in Accounting and an MBA in Finance from the Kogod School of Business at American University.
Key Fund Documents
- Fund Factsheet
- Fund Holdings
- Q1 Holdings
- SAI (Statement of Additional Information)
- Institutional Share Class Application
- Institutional Share Class IRA Application
- Institutional Share Class Entity Account Application
- IRA Transfer Form
- IRA Distribution Form
- Annual Report
- Q3 Holdings
- Semi-Annual Report
- Certification of Beneficial Owners Form for Entities
- Mutual Funds Redemption Form
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.
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).
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). PLEASE READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST.
Inception date: 11/30/2015. Performance reflects total returns, represents past performance, and is no guarantee of future results. Investment returns and principal values may 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 that shown. All returns assume reinvestment of all dividend and capital gain distributions. Performance reflects the deduction of all actual fees and expenses of the related accounts during the periods shown and not the fees and expenses payable by the Penn Capital Managed Alpha SMID Cap Equity Fund. Penn Capital mutual funds are distributed by Foreside Fund Services, LLC (Foreside), which is not affiliated with Penn Capital or any of its affiliates. Penn Capital mutual funds are available to U.S. residents only.
Foreside Fund Services, LLC, Distributor.