ABSOLUTE Funds

Absolute Capital Opportunities Fund  [CAPOX]

Inception Date:
December 20,2015

Structure:
Open-End Mutual Fund

Ticker:
CAPOX

Share Classes:
I-Share

Fund Administration:
Apex Fund Services

Distributor:
Foreside Fund Services, LLC

The Absolute Capital Opportunities Fund – CAPOX

Absolute Capital Opportunities Fund seeks to achieve long-term capital appreciation with a lower sensitivity to traditional financial market indices such as the Standard & Poor’s 500® Index.  The Fund uses a flexible approach to value investing and seeks to generate returns from multiple sources. The manager varies the Fund’s net exposures (long and short) and utilizes tail-risk hedging to potentially benefit from volatility.

About the Subadviser

KOVITZ INVESTMENT GROUP PARTNERS is an investment and wealth management firm located in Chicago, IL. Kovitz was founded in October 2003 after operating as an independent group within Rothschild Investment Corporation starting in 1997. The firm manages assets with a value approach across a number of equity, fixed-income, and private strategies. The hedged equity strategy utilized by CAPOX is managed by a long-standing team of Mitch Kovitz, Jon Shapiro, and Joel Hirsh.

Mitchell A. Kovitz, CFA
Founder & Principal, Co-Chief Investment Officer
Industry start: 1989
Firm start: 2003
Education: University of Illinois at Urbana –Champaign, BS; University of Illinois, MST
Jonathan A. Shapiro, CFA
Founder & Principal, Co-Chief Investment Officer
Industry Start: 1997
Firm Start:  2003
Education: Carleton College, BA; University Of Chicago, MBA
Joel D. Hirsh, CFA
Principal, Co-Chief Investment Officer
Industry Start: 2004
Firm Start:  2006
Education: University Of Michigan, BA

Fund Literature

i

Prospectus

i

Statement of Additional Information (SAI)

Additional Resources:

CAPOX Financial Advisor Introduction:

(email request –financial professional use only)

2019 – Portfolio Manager Interview by The Prudent Speculator

Shareholder Reports

Semi-Annual Report – Period Ending 9/30/20
Absolute Funds Information Statement – 9/17/20
Annual Report – Period Ending 3/31/20
Semi-Annual Report – Period Ending 9/30/19
Annual Report – Period Ending 3/31/19
Semi-Annual Report – Period Ending 9/30/18
Annual Report – Period Ending 3/31/18
Semi-Annual Report – Period Ending 9/30/17
Annual Report – Period Ending 3/31/17
Semi-Annual Report – Period Ending 9/30/16
Annual Report – Period Ending 3/31/16

PORTFOLIO COMMENTARY

Portfolio Commentary for the Absolute Capital Opportunities Fund is provided on a quarterly basis and can be found below along with other “discussion” articles that are relevant to the Fund. Additional information can be found within the shareholder letters in the Annual and Semi-Annual Reports. If you are a financial adviser and would like to be added to our e-mail distribution list, contact us by e-mail.

“We believe the Fund has a distinct advantage in using deep, fundamental, stock-specific research that aims to create a portfolio of 35 or so high-quality companies and to exploit opportunities readily available in the options market. We believe this combination of a stock portfolio wrapped in a hedging overlay create a superior payoff profile to what can be achieved with a typical 60/40 mix of stocks and bonds.”   [read all]

“Our investment approach is to be flexible with net exposures over time. The Fund’s positioning is adjusted based on an ongoing assessment of favorable returns relative to the amount of risk assumed. In this regard, the Fund has been running with net exposure closely resembling a market neutral strategy for the past several years… …In terms of the Fund’s risk structure, the persistence of an environment defined by low interest rates and low implied volatility continues to provide attractive, cost-effective opportunities to hedge against both downside risk and upside risk.” [read all]

“We believe the discrepancy between CAPOX and its peer group comes down to a fundamental difference in our process. We believe the most effective way to protect downside is by actively hedging, by combining that process with our bottom up research, and by structuring the Fund to potentially have an attractive payoff profile in market movement both up and down. The Fund can earn a return either via stock selection, relative stock selection, changes in volatility, or direct hedges based on broad based market movement. In other words, having multiple opportunities for gains.” [read all]

Fund Distribution Information

The Fund distributes income semi-annually in June and December and distributes long and short-term capital gains in December. This page will be updated with distribution amounts when the data becomes available.

2020 Distributions
December – Income & Capital Gains Distributions per share.
Class Income Long-Term Capital Gains Short-Term Capital Gains
Class CAPOX Income $0.00 Long-Term Capital Gains $0.03483
Short-Term Capital Gains $1.91918
Class Ex Date Income 12/31/20 Long-Term Capital Gains 12/10/20 Short-Term Capital Gains 12/10/20
Class Record Date Income 12/30/20 Long-Term Capital Gains 12/11/20 Short-Term Capital Gains 12/11/20

.

June – Income Distributions per share
Class Income
Class CAPOX Income $0.00493
Class Ex Date Income 6/30/20
Class Record Date Income 6/29/20
2019 Distributions
December – Income & Capital Gains Distributions per share.
Class Income Long-Term Capital Gains Short-Term Capital Gains
Class CAPOX Income $0.00
Long-Term Capital Gains $0.00 Short-Term Capital Gains $0.00
Class Ex Date Income 12/31/19 Long-Term Capital Gains 12/13/19 Short-Term Capital Gains 12/13/19
Class Record Date Income 12/30/19 Long-Term Capital Gains 12/12/19 Short-Term Capital Gains 12/12/19

.

June – Income Distributions per share
Class Income
Class CAPOX Income $0.00
Class Ex Date Income 6/28/19
Class Record Date Income 6/27/19
2018 Distributions
December – Income & Capital Gains Distributions per share.
Class Income Long-Term Capital Gains Short-Term Capital Gains
Class CAPOX Income $0.00
Long-Term Capital Gains $0.32174
Short-Term Capital Gains $0.44766
Class Ex Date Income 12/31/18 Long-Term Capital Gains 12/14/18 Short-Term Capital Gains 12/14/18
Class Record Date Income 12/28/18 Long-Term Capital Gains 12/13/18 Short-Term Capital Gains 12/13/18

.

June – Income Distributions per share
Class Income
Class CAPOX Income $0.00
Class Ex Date Income 6/29/18
Class Record Date Income 6/28/18
2017 Distributions
December – Income & Capital Gains Distributions per share.
Class Income Long-Term Capital Gains Short-Term Capital Gains
Class CAPOX Income $0.00
Long-Term Capital Gains $0.00
Short-Term Capital Gains $0.00
Class Ex Date Income 12/29/17 Long-Term Capital Gains 12/15/17 Short-Term Capital Gains 12/15/17
Class Record Date Income 12/28/17 Long-Term Capital Gains 12/14/17 Short-Term Capital Gains 12/14/17

.

June – Income Distributions per share
Class Income
Class CAPOX Income $0.00
Class Ex Date Income 6/29/18
Class Record Date Income 6/28/18
2016 Distributions
December – Income & Capital Gains Distributions per share.
Class Income Long-Term Capital Gains Short-Term Capital Gains
Class CAPOX Income $0.00
Long-Term Capital Gains $0.00
Short-Term Capital Gains $0.00
Class Ex Date Income 12/30/16 Long-Term Capital Gains 12/15/16 Short-Term Capital Gains 12/15/16
Class Record Date Income 12/29/16 Long-Term Capital Gains 12/14/16 Short-Term Capital Gains 12/14/16

.

June – Income Distributions per share
Class Income
Class CAPOX Income $0.00
Class Ex Date Income 6/30/16
Class Record Date Income 6/29/16

Investing in the Fund

Purchasing Through a Financial Adviser:
The Absolute Capital Opportunities Fund may serve as an important piece of a diversified portfolio. We encourage investors to consult their financial advisers for guidance on asset allocation and the role of the Fund. Financial Advisers should contact us directly for information on the Fund and how it may be purchased.
Go to Contact Information Page

Direct Investment in the Fund:
Investors may purchase the Fund directly from the Fund using the applications below. Please complete the applications and follow the purchasing instructions. For additional information, please call the Fund’s shareholder servicing department at 1-888-99-ABSOLUTE

Absolute Capital Opportunities Fund Application
Absolute Capital Opportunities Fund IRA Application
Absolute Capital Opportunities Fund IRA Transfer Form

Fund Risks & Disclosure

Past performance does not guarantee future results. The Fund’s net asset value and investment return will fluctuate based upon changes in the value of its portfolio securities. There is no assurance that the Fund will achieve its investment objective, and an investment in the Fund is not by itself a complete or balanced investment program. For a complete description of the Fund’s principal investment risks please refer to the prospectus.

Asset allocation decisions may not always be correct and may adversely affect Fund performance. The value of a convertible security is influenced by changes in interest rates, with investment value declining as interest rates increase and increasing as interest rates decline. The credit standing of the issuer and other factors also may have an effect on a convertible security’s investment value. Debt securities have interest rate, inflation and credit risks and are subject to prepayment and default risk. High yield and junk securities involve greater risk and tend to be more sensitive to economic conditions and credit risk. Short sales may be considered speculative and it may be difficult to purchase securities to meet delivery obligations. The Fund may leverage transactions which include selling securities short as well as borrowing for other than temporary or emergency purposes. Leverage creates the risk of magnified capital losses. Diversification does not prevent loss or enhance returns. Foreign investments present additional risk due to currency fluctuations, economic and political factors, government regulations, differences in accounting standards and other factors. Investments in emerging markets involve even greater risks. Small, mid and large cap stocks are subject to substantial risks such as market, business, size volatility, management experience, product diversification, financial resource, competitive strength, liquidity, and potential to fall out of favor that may cause their prices to fluctuate over time, sometimes rapidly and unpredictably. The Fund is actively managed and may experience high turnover. This may cause higher fees, expenses and taxes, which could detract from Fund performance. The Fund is new and has a limited history of operations.

These views are subject to change at any time based on market and other conditions, and Absolute Investment Advisers disclaims any responsibility to update such views. No forecasts can be guaranteed. These views may not be relied upon as investment advice or as an indication of trading intent on behalf of any Absolute Investment Advised investment product.

The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. It is not possible to invest directly in an index.