Fund Description & Objective

The Shorebreak Capital Global-Macro Absolute Return Model (“The Model”) is a type of absolute return strategy that seeks to achieve long-term total return using an absolute return global-macro investment framework. The Model evaluates all major global asset classes in the global financial markets by analyzing over 150 proprietary algorithmic data sets to generate each asset class with a proprietary ranking. 100% of The Model is invested in the highest-ranking asset class through the corresponding exchange-traded fund (ETF) as a means to invest in the underlying asset class.

While the above model identifies the primary asset class for the current period and cycle, the fund portfolio strategy uses the same model framework to diversify within the primary asset class, if applicable, as well as invest in other asset classes, sectors, sub-sectors, and companies that also meet the acquisition criterion of The Model. This allows the advisor to properly diversity the assets within the portfolio. The portfolio typically consists of 10 – 25 diversified positions that exhibit specific asymmetrical investment opportunities. This allows the advisor to manage risk and achieve consistent and strong long-term capital appreciation.

 Unlike traditional investment strategies, where returns are generally tied to the ups and downs of single benchmark, absolute return strategies may produce positive returns in any market environment, independent of the market being up, down of flat.

 Absolute return strategies offer a potential strategy diversification benefit, that may help to achieve more consistent returns over time and reduce overall investment risk, but it does not guarantee a profit or protect against a loss.