Ticker: 
PSMPX
  |  CUSIP: 
707269106
AS OF 

Penn Capital Managed Alpha SMID Cap Equity Fund

Nav Daily $ Change Daily % Change Year To Date Inception Date Share Class
$13.49
^$0.01
^0.07%
26.79%
Institutional

Overview

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.

Objective

The Penn Capital Managed Alpha SMID Cap Equity Fund seeks to provide capital appreciation.

Strategy

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).

Industry Examples

Consumer Discretionary, Consumer Staples, Energy, Financials, Healthcare, Industrials, Information Technology, and Materials.

Performance

AS OF 10/31/2019
Ticker: PSMPX | CUSIP: 707269106
MTD QTD YTD 1 Year 3 Year Since Inception 2018 2017 2016 1 Year09/30/2018 to 09/30/2019 Inception
to 09/30/2019
Penn Capital Managed Alpha SMID Cap Equity Fund
1.86%
1.86%
23.50%
13.96%
14.59%
10.50%
-9.98%
19.97%
16.98%
-0.02%
10.22%
Russell 2500 Index
1.91%
1.91%
19.97%
8.84%
11.74%
9.42%
-10.00%
16.81%
17.60%
-4.04%
9.09%
AS OF 10/31/2019
Ticker: PSMPX | CUSIP: 707269106
Penn Capital Managed Alpha SMID Cap Equity Fund
MTD 1.86
QTD 1.86
YTD 23.50
1 Year
13.96
3 Year
14.59
Since Inception 10.50
2018 -9.98
2017 19.97
2016 16.98
1 Year (09/30/2018 to 09/30/2019) -0.02
Inception(Inception Date to 09/30/2019) 10.22
Russell 2500 Index
MTD 1.91
QTD 1.91
YTD 19.97
1 Year
8.84
3 Year
11.74
Since Inception 9.42
2018 -10.00
2017 16.81
2016 17.60
1 Year (09/30/2018 to 09/30/2019) -4.04
Inception(Inception Date to 09/30/2019) 9.09

Investment Process

Step 1
Fundamental Financial Analysis

Penn Capital’s analysts and portfolio managers screen for companies with improving financial metrics to determine relative value.

Step 2
Qualitative Research

Penn Capital’s analysts and portfolio managers perform qualitative research to confirm relative value.

Step 3
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.

Step 4
Recommendation

Primary and secondary analysts and portfolio managers present best new idea(s) to entire team for evaluation and consideration.

Step 5
Decision Making

Two-step approval process requires approval first by the portfolio manager, and second by either the Director of Research or the Chief Investment Officer.

Step 6
Portfolio Construction

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 2.20%.

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, 2020. 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.

Portfolio Managers

Eric J. Green, CFA

Deputy Chief Investment Officer – Equity, Senior Portfolio Manager, Senior Managing Partner

Mr. Green has been with Penn Capital since 1997. As Deputy CIO of Equity, he is responsible for supporting the CIO in 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.

Joseph Maguire, CFA

Director of Research, Senior Portfolio Manager, Senior Managing Partner

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 Senior 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.

Richard Hocker

Founder, Chief Investment Officer & Chief Executive Officer

Mr. Hocker founded Penn Capital in 1987 and serves as Chief Investment Officer & 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 Wachovia Corporation 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.