Adviser to the Fund:
Before you invest in the Navian Waycross Long/Short Equity Fund, please refer to the prospectus for important information about the investment company, including investment objectives, risks, charges and expenses. You may also obtain a hard copy of the prospectus by calling (866) 267-4304. The prospectus should be read carefully before you invest or send money.
The Fund is offered only to United States residents, and the information on this site is intended only for such persons. Nothing on this web site should be considered a solicitation to buy or an offer to sell shares of any fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.
The Navian Waycross Long/Short Equity Fund is distributed by Ultimus Fund Distributors, LLC.
Mutual fund investing involves risk. Principal loss is possible.
As of September 30, 2017
*The S&P 500 Index is the Standard & Poor's composite index of 500 stocks, a widely recognized, unmanaged index of common stock prices. An investor may not invest directly in an index.
September marked the end of a solid quarter for U.S. equities as the S&P 500 index posted a +4.5% return for the three month period. Market strength was broad based during the period across major indices, capitalization, and market sectors. Technology stocks led performance once again during the quarter (+9%) and remain the best performing group by far for the year-to-date period (+27%).
Market fundamentals remain positive. Guidance for third quarter corporate earnings growth remains strong at +4.2% with 8 of the 11 sectors growing earnings year-over-year. Consumer sentiment remains at a high level. Business confidence is also on the rise along with an uptick in business spending. Both manufacturing and non-manufacturing indices increased during the quarter. In addition, orders for business equipment trended higher.
Damages are still being assessed from the August and September major hurricanes and the record breaking season isn’t even over yet. Investors will be paying close attention to third quarter earnings calls as companies report the actual impact recent hurricanes had on earnings.
Monetary policy and its impact on interest rates will also be closely watched in the months ahead. Earlier this year the Federal Reserve guided towards one more increase to the Fed Funds rate in 2017 but, recent comments by policymakers suggest that another increase this year may be off the table. The Fed also started selling $4 trillion in securities acquired during the quantitative easing program. Although the deleveraging process is expected to be slow and steady over 10+ years, it will put upward pressure on interest rates. This backdrop will be a headwind for yield stocks and favors growth areas of the market and certain Financials. Also of note is President Trump’s upcoming appointment of Yellen’s successor as Fed chairperson. A surprise choice has the potential to impact capital markets.
Political risk remains a wildcard. After a failed attempt earlier this year to repeal and replace the Affordable Care Act, investors will be watching the tax reform proposal closely. Lower taxes have the potential to be a one-time step function in corporate EPS growth rates. The market is actually starting to price this in which means if Trump is unsuccessful, the reaction would likely be negative. U.S. tensions with North Korea have escalated in recent months. Although market fundamentals should continue to support growth, increased volatility and perhaps even a short term pull-back is possible.