As of 03.31.2018
ENTREPRENEUR U.S. SMALL CAP MUTUAL FUND INVESTMENT STRATEGY> The fund invests in a portfolio of domestic entrepreneurial companies with market caps above $300MM. We select investments based on our 15 proprietary qualitative and quantitative filters. Our investment style places high value on visionary leaders who are stewards of their companies and possess high economic and personal stakes. APPROACH> The firm utilizes a bottom-up fundamental approach to identify investments in companies that possess 15 entrepreneurial attributes. Our extensive academic research and 10+ years of professional performance assert that companies possessing these characteristics have the potential to outperform “non-entrepreneurial” companies over time.
Fund Information Strategy AUM
ENTREPRENEURIAL LEADERS CAN CREATE FUNDAMENTAL VALUE
Number of Holdings
• Visionary entrepreneurial leaders have economic and non-economic incentives to create value • These leaders see far horizons and are resilient in tough times • Their organizations keep costs lean, debt levels manageable, and expansion projects within reach ENTREPRENEURIAL COMPANIES CAN OUTPERFORM THE COMPETITION • Our research asserts the entrepreneurially run companies achieve higher long-run growth rates • Those companies emphasize motivated and transparent leadership and prioritize shareholders • They focus on sustainable organic growth and operational efficiency ENTREPRENEURIAL BEHAVIOR CAN TRANSLATES INTO SHAREHOLDER VALUE
Gross Expense Ratio
Net Expense Ratio*
Avg. Mkt. Cap. ($-WTD)
Top 10 Holdings Nutanix Inc
• This drives earnings growth, stock price appreciation, and above average employment growth
Casa Systems Inc
Entrepreneurial leaders are the ones that create entrepreneurial companies and institute entrepreneurial behavior. Thus, leadership matters in a company. More information can be found in the Leadership Matters article by Joel Shulman.
Paycom Software Inc
3.08% 23.13% 10.68% 12.34%
-0.08% 11.79% 8.39% 10.54%
2.30% 18.63% 8.77% 13.14%
Growth of $1,000 Russell 2000 Growth
Epam Systems Inc
New Relic Inc
Russell 2000 Growth
Entrepreneurs by Sector Information Technology
Performance quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Performance data current to the most recent month end may be obtained by calling 1-877-271-8811 for Mutual Fund or visiting ershares.com.
+1 (617) 279 0045
As of 03.31.2018
The fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company, and it may be obtained by calling 1-877-271- 8811 or visiting www.ershares.com. Read it carefully before investing. Distributed by Rafferty Capital Markets, LLC, Garden City, NY 11530. The Entrepreneur U.S. Small Cap Fund invests in smaller companies, which involve additional risks such as limited liquidity and greater volatility. The Fund is exposed to common stock risk. Common Stock prices fluctuate based on changes in a company’s financial condition and on overall market and economic conditions. Additional risks are detailed in the prospectus. The Russell 2000 Total Return Index is a subset of the Russell 3000 Total Return Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership. The Russell 2000 Growth Index is composed of small-capitalization US equities that exhibit growth characteristics. Alpha compares the risk-adjusted performance of a portfolio to a benchmark index. A positive alpha means the portfolio has outperformed the index on a risk-adjusted basis. Beta is a measure of the volatility of a portfolio in comparison to a benchmark index. Less than one means the portfolio is less volatile than the index, while greater than one indicates more volatility than the index. Standard deviation measures historical volatility. Higher Standard Deviation implies greater volatility. Sharpe Ratio measures risk-adjusted performance by dividing the portfolio’s excess returns (returns above a "risk-free" rate such as a Treasury bill) by the standard deviation of those returns. The higher the ratio, the better the portfolio’s return per unit of risk. The Up Capture ratio is the statistical measure of an investment manager’s performance in up-markets. The Down Capture ratio is the statistical measure of an investment manager’s performance in down-markets. Information Ratio is a ratio of portfolio returns above the returns of a benchmark compared to the volatility of those returns. The P/E (or Price/Earnings) ratio is the ratio of a company’s share price to its earnings per share. Earnings before interest, tax, depreciation and amortization (EBITDA) is a measure of a company's operating performance. Fees The Entrepreneur U.S. Small Cap Fund mutual fund has institutional class shares. The Entrepreneur U.S. Small Cap Fund has Total Annual Fund Operating Expenses of 0.90%. The Mutual Fund share classes is subject to a Redemption Fee of 2%. There is no maximum sales charge on the institutional share class. *After the Fee Waivers and Expense Reimbursements of 0.05%, the Net expense to the investors is 0.85%. Net expense ratio reflects the expense waiver the advisor has contractually agreed to through November 1, 2018. Source : Shulman, Joel M. “Leadership Matters: Crafting a Smart Beta Portfolio with a Founder-CEO Twist.” The Journal of Index Investing, vol. 8, 2017, doi: http://www.iinews.com/site/pdfs/iiJPDF/Entrepreneur/ESJIIWinter2017LeadershipMatters.pdf .
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