Managed by Alambic Investment Management, L.P. 655 Montgomery Street, Suite 1905 San Francisco, California USA

Transcription

1 Managed by Alambic Investment Management, L.P. 655 Montgomery Street, Suite 1905 San Francisco, California USA March 2018

2 Alambic combines: The value of insightful fundamental factor research with The discipline and precision of systematic stock selection. That s the Power of Plus. By merging the two approaches, Alambic leverages the Power of Plus in an effort to deliver consistent, reliable long term performance.

3 Extensive Fundamental Equity Research Expertise combined with systematic technology-driven approach to stock selection and portfolio construction Investment Process developed, tested and refined over 9 years prior to launch of first mutual fund product Proprietary Optimization Platform integrates security selection, transaction costs and risk management Experienced and Cohesive Management Team with a long history of collaboration and rich backgrounds in equity research, analytics and management Multi-factor Return Forecasting Model brings precision, scale and discipline to stock selection process Multiple Strategies Intended over time to exceed our benchmarks

4 Albert Richards, PhD, MBA, CFA Brian Thompson, PhD, CAIA Biographies on Slide 15 Alambic s Investment Philosophy Markets are not perfectly efficient. Emotion and behavioral biases interfere with rational investment decisions, creating small, systematic shifts from fair value. Through research and experience, we have developed the tools to systematically identify these opportunities and try to profit from them. Our strategy is differentiated by the diversity of ideas, expertise, experiences and backgrounds of our team.

5 Alambic Small Cap Value Plus Fund (ALAMX) Long Only, Benchmark: Russell 2000 Value Index NAV: $3,046,789 Inception date: 8/31/2015 Alambic Mid Cap Value Plus Fund (ALMVX) Long Only, Benchmark: Russell Mid Cap Value Index NAV: $1,126,061 Inception Date: 12/29/2016 Alambic Small Cap Growth Plus Fund (ALGSX) Long Only, Benchmark: Russell 2000 Growth Index NAV: $2,857,960 Inception Date: 12/29/2015 Alambic Mid Cap Growth Plus Fund (ALMGX) Long Only, Benchmark: Russell Mid Cap Growth Index NAV: $1,125,573 Inception Date: 12/29/2016 Data as of 31 March 2018

6 2006: Albert Richards, Brian Thompson, Mike Oberhaus and Scott McBride founders of Alambic Investment Management, L.P. Bert and Brian are longtime friends from MIT. Mike and Scott worked with Bert in equity research at Citi. Today: Alambic manages 8 accounts with assets totaling more than $400m Initial Strategy Development Model Portfolio 2011: Alambic launches first private fund using proprietary fundamental valuationbased models and optimization. Market-neutral Hedge Fund 2010: Live trading with internal money in a test account The founders dedicated 5 years to researching, developing and testing the strategy before managing outside investments. 2015: (8/31) Small Cap Value Plus Launched 2015: (12/31) Small Cap Growth Plus Launched 2016: (12/29) Mid Cap Value Plus and Mid Cap Growth Plus Launched ALAMX ALGSX ALMVX ALMGX

7 These three core technologies have powered Alambic s market-neutral hedge fund for more than 6 years, and also bring the power of plus to the long-only mutual funds. Systematic methods that check financial statements for correctness and consistency. Valuation based multi-factor model used to predict forward returns for every stock in our investible universe. Seeks to maximize return given a targeted tracking error subject to a broad range of risk constraints.

8 Building upon decades of equity research experience, Alambic built proprietary factors from fundamental financial and other company data sources. Alambic has found that these factors (or attributes ) are persistent drivers of return. They are grouped by similarity into 5 main categories. Relative Valuation Earnings-power to market value i.e., sophisticated blend of P/E, CF/P, EV/EBITDAtype metrics Intrinsic Valuation Proprietary factors that compare replacement-costs to market value i.e., B/P Company Quality A blend of factors that measure how effectively management is utilizing company assets Corporate Growth Growth of assets, growth of sales, earnings growth, etc. - These have a non-linear relationship to forward returns Momentum / Behavioral This is a broad category for factors that don t fit neatly into the other categories.

9 The process begins at market close, when fundamental financial and other market data is downloaded. Data loaded into proprietary databases Proprietary factors calculated. The factors are calculated systematically for every stock. They are then used to predict future returns for each stock. Trades sent to the market via prime broker trading algorithms Alambic s proprietary optimization process considers tracking error, risk, transaction and trading costs, as well as taxes in building portfolio and trade lists. Optimizer builds portfolio and determines trades Proprietary models combine factors to estimate forward returns

10 Data as of 03/31/2018 Performance data quoted represents past performance. Past performance does not guarantee future results. All performance assumes reinvestment of dividends and capital gains. The investment return and principal value of an investment will fluctuate so that investor s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For performance information current to the most recent month end, call Shareholder Services at

11 03/31/ Net Expense Ratio: 0.95% Gross Expense Ratio: 6.65% Alambic Investment Management, L.P. (the Adviser ) has contractually agreed, until August 31, 2018, to reduce Management Fees and reimburse Other Expenses to the extent necessary to limit Total Annual Fund Operating Expenses 0.95% of the Fund s average daily net assets. Net Expense Ratio: 0.95% Gross Expense Ratio: 7.22% Alambic Investment Management, L.P. (the Adviser ) has contractually agreed, until August 31, 2018, to reduce Management Fees and reimburse Other Expenses to the extent necessary to limit Total Annual Fund Operating Expenses 0.95% of the Fund s average daily net assets. Net Expense Ratio: 0.85% Gross Expense Ratio: 17.03% ALAMX ALAMBIC SMALL CAP VALUE PLUS FUND RUSSELL 2000 VALUE INDEX ALGSX ALAMBIC SMALL CAP GROWTH PLUS FUND RUSSELL 2000 GROWTH INDEX ALMVX ALAMBIC MID CAP VALUE PLUS FUND RUSSELL MID CAP VALUE INDEX AS OF RETURN RETURN RETURN RETURN SINCE INCEPT. DATE 3 MOS. 6 MOS. 1 YEAR YTD ANNUAL. 03/31/ AS OF RETURN RETURN RETURN RETURN SINCE INCEPT. DATE 3 MOS. 6 MOS. 1 YEAR YTD ANNUAL. 03/31/ /31/ Alambic Investment Management, L.P. (the Adviser ) has contractually agreed, until August 31, 2018, to reduce Management Fees and reimburse Other Expenses to the extent necessary to limit Total Annual Fund Operating Expenses 0.85% of the Fund s average daily net assets. ALMGX ALAMBIC MID CAP GROWTH PLUS FUND RUSSELL MID CAP GROWTH INDEX 03/31/ Net Expense Ratio: 0.85% Gross Expense Ratio: 16.22% Alambic Investment Management, L.P. (the Adviser ) has contractually agreed, until August 31, 2018, to reduce Management Fees and reimburse Other Expenses to the extent necessary to limit Total Annual Fund Operating Expenses 0.85% of the Fund s average daily net assets AS OF RETURN RETURN RETURN RETURN SINCE INCEPT. DATE 3 MOS. 6 MOS. 1 YEAR YTD ANNUAL. 03/31/ /31/ AS OF RETURN RETURN RETURN RETURN SINCE INCEPT. DATE 3 MOS. 6 MOS. 1 YEAR YTD ANNUAL. 03/31/ Performance data quoted represents past performance. Past performance does not guarantee future results. All performance assumes reinvestment of dividends and capital gains. The investment return and principal value of an investment will fluctuate so that investor s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For performance information current to the most recent month end, call Shareholder Services at

12 Alambic Small Cap Value Plus Fund (ALAMX) Inception date 8/31/2015 Net Assets $3.047M # Equity Positions 199 Turnover (annual average) 217% Median Market Cap 1.06B Weighted Average Market Cap 1.22B Net Expense Ratio 0.95% Gross Expense Ratio 6.65% Performance Based Characteristics Standard Deviation 16.54% Sharpe Ratio 0.80 R Squared 0.95 Tracking Error 4.34% Data as of 31 March 2018

13 Alambic Small Cap Growth Plus Fund (ALGSX) Inception date 12/29/2015 Net Assets $2.858M # Equity Positions 185 Turnover (annual average) 198% Median Market Cap 0.91B Weighted Average Market Cap 1.82B Net Expense Ratio 0.95% Gross Expense Ratio 7.22% Performance Based Characteristics Standard Deviation 16.23% Sharpe Ratio 1.04 R Squared 0.93 Tracking Error 4.39% Data as of 31 March 2018

14 Alambic Mid Cap Value Plus Fund (ALMVX) Inception date 12/29/2016 Net Assets $1.126M # Equity Positions 162 Turnover (annual average) 161% Median Market Cap 10.53B Weighted Average Market Cap 14.73B Net Expense Ratio 0.85% Gross Expense Ratio 17.03% Performance Based Characteristics Standard Deviation 10.98% Sharpe Ratio 0.87 R Squared 0.91 Tracking Error 3.64% Data as of 31 March 2018

15 Alambic Mid Cap Growth Plus Fund (ALMGX) Inception date 12/29/2016 Net Assets $1.126M # Equity Positions 134 Turnover (annual average) 180% Median Market Cap 9.02B Weighted Average Market Cap 11.74B Net Expense Ratio 0.85% Gross Expense Ratio 16.22% Performance Based Characteristics Standard Deviation 11.26% Sharpe Ratio 1.27 R Squared 0.94 Tracking Error 3.20% Data as of 31 March 2018

16 PhD, CFA CEO and Partner Albert Richards is Alambic s Chairman and CEO. Mr. Richards, along with Mr. Thompson and Mr. Oberhaus, founded the General Partner and the Investment Manager in November From 1994 to 2006, Mr. Richards worked for Citigroup (previously Salomon Brothers), where he was a Managing Director and Head of European Equity Research ( ), European Internet and Global Technology strategist ( ) and Small and Mid-Cap strategist ( ). From 1986 to 1994 Mr. Richards worked for Credit Suisse First Boston in New York and London, England, mainly as the European Chemical Analyst (second in the Extel and runner-up in the Institutional Investor research rankings) and also as the Head of European Sector Research (1994). Mr. Richards received his B.S. degree in Chemical Engineering from Iowa State University in 1981, an M.S. degree in Chemical Engineering from the Massachusetts Institute of Technology in 1983, a Ph.D. degree in Chemical Engineering from the Massachusetts Institute of Technology in 1986, and an M.B.A. degree from the Sloan School of Management (MIT), also in He was awarded the Chartered Financial Analyst (CFA) designation in PhD, CAIA CRO and Partner Brian Thompson is Alambic s President and Chief Risk Officer. Mr. Thompson, along with Mr. Richards and Mr. Oberhaus, founded the General Partner and the Investment Manager in November From 2002 to 2006, Mr. Thompson was Senior Member of Technical Staff at Legerity, Inc. From 1998 to 2002, Mr. Thompson was a Distinguished Member of Technical Staff and then Senior Member of Technical Staff at Lucent Technologies, Agere Systems and Legerity, Inc., successively. From 1988 to 1998, he was a Professor of Chemical Engineering at the University of Kansas (tenured in 1993), and, from 1986 to 1988, he was a Member of Technical Staff at Analog Devices. Mr. Thompson received his B.S. degree in Chemical Engineering from the University of Kansas in 1981, an M.S. degree in Chemical Engineering from the Massachusetts Institute of Technology in 1983, and a Ph.D. degree in Chemical Engineering, with a minor in Statistics, from the Massachusetts Institute of Technology in He was awarded the Chartered Alternative Investment Analyst (CAIA) designation in 2008

17 Head of Product Strategy and Partner Robert Slaymaker is responsible for product strategy. Prior to joining Alambic, from 2008 to 2013, Mr. Slaymaker was an Operating Partner with Advent International, Inc., advising on the potential acquisition of global financial technology companies. Between 2004 and 2008, Mr. Slaymaker was the CEO of Bond Desk Group LLC., an electronic bond trading platform that provides decision support, live market execution and straight through processing to financial advisors. Prior to Bond Desk, from 1998 to 2004, Mr. Slaymaker was the COO of the Equity Division of Bank of America Securities (formerly Montgomery Securities) and Chairman of Banc America Securities and head of Fixed Income from 1993 to He held a series of fixed income sales and trading management roles in the US and Asia while working in Bank of America s securities division prior to Mr. Slaymaker received a B.A. from Johns Hopkins University in CFO/COO and Founder Michael Oberhaus is Alambic s CFO and COO. Mr. Oberhaus, along with Mr. Richards and Mr. Thompson, founded the General Partner and the Investment Manager in November From 2003 to 2006 Mr. Oberhaus was on the Small & Mid-Cap Strategy Team at Citigroup Investment Management in San Francisco. From 1999 to 2003, he was an R&D Engineer in the Transfusion Therapies division of Baxter Healthcare Corporation in Chicago. Mr. Oberhaus received his B.S. degree in Chemical Engineering from Iowa State University in 2002.

18 CFA Quantitative Strategist and Founder Scott McBride is Alambic s Quantitative Strategist. Prior to joining Alambic in early 2007, Mr. McBride was an Associate Analyst on the Hardware Equity Research Team at Schwab Soundview/Soundview Technology Group. From 2000 to 2003, he worked for Citigroup/Salomon Smith Barney in Hardware Equity Research and Global Technology Strategy. Before that, Mr. McBride was Communication Systems Engineer at TRW, where he was a Senior Member of the Technical Staff. Mr. McBride received his B.S. degree in Electrical Engineering from the University of Arizona in 1989, an M.S. degree in Electrical Engineering from the University of Illinois at Urbana-Champaign in 1991, and an M.B.A degree from the Anderson School of Management (UCLA) in He was awarded the Chartered Financial Analyst (CFA) designation in JD CCO Mary Phillips is Alambic s Chief Compliance Officer. From 2003 to 2009, Ms. Phillips performed human resources and administrative, legal, research and writing support for Natural Path Media and Lark Media, Inc. Before that, Ms. Phillips was Executive Vice President and Counsel in the European Compliance Department for Citigroup (formerly Salomon Brothers) in London, England; Senior Counsel and Branch Chief in the Division of Enforcement with the Securities and Exchange Commission ( SEC ) in Washington, D.C.; and Associate at Sutherland, Asbill & Brennan, in Washington, D.C. Ms. Phillips received a B.A. from the University of Michigan in 1986 and a J.D. degree from the University of Michigan in Head of Marketing and Client Services Danielle Lawson is Alambic's Head of Marketing and Client Services. Prior to joining Alambic in 2013, Ms. Lawson was the Head of Quant Strategy for Thomson Reuters and a member of the Quantitative Research Team at StarMine (acquired by Thomson Reuters in 2008). Before that, she was an IT consultant and the Head of Operations and Client Services for a technology start-up. Ms. Lawson received a B.S. Ocean Engineering from the Massachusetts Institute of Technology in 1996 and a M.S. in Ocean Engineering from MIT in 1998.

19 Mutual Fund investing involves risk, principal loss is possible. An investor should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. To obtain a summary prospectus and/or prospectus, which each contain this and other important information, go to or call (888) Please read the summary prospectus and/or prospectus carefully before investing. The Fund may not be suitable for all investors. Distributed by Ultimus Fund Distributors, LLC. Investment Risks Investment in the Funds are subject to investment risks, including, without limitation, active management risk, equity securities risk, convertible stock risk, preferred stock risk, REIT risk, small-cap risk, foreign securities risk, ADR risk, quantitative model risk, issuer risk, new fund and manger risk, portfolio turnover risk, and value investing risk. For more information about the Fund, including the Fund s objectives, charges, expenses and risks (including more information about the risks listed above), please read the prospectus. Index Definitions Russell 2000 Index is an index that measures the performance of the 2,000 smallest companies in the Russell 3000 Index. Russell 2000 Growth Index measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values. Russell 2000 Value Index measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values. Russell Midcap Index measures the performance of the 800 smallest companies in the Russell 1000 Index. The Russell Midcap Growth Index measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values. The stocks are also members of the Russell 1000 Growth index. The Russell Midcap Value Index measures the performance of those Russell Midcap companies with lower price-to-book ratios and lower forecasted growth values. The stocks are also members of the Russell 1000 Value index. You cannot invest directly in an index. Other Definitions Standard Deviation is a measure of how spread out numbers are within a group. It is the measure of the dispersion of a set of data from its mean and is calculated as the square root of variance by determining the variation between each data point relative to the mean. If the data points are further from the mean, there is higher deviation within the data set. Sharpe Ratio is the average return earned in excess of the risk-free rate per unit of volatility or total risk. The ratio describes how much excess return you are receiving for the extra volatility that you endure for holding a riskier asset. Source: R Squared is a statistical measure that represents the percentage of a fund or security's movements that can be explained by movements in a benchmark index. R-squared values range from 0 to 1 and are commonly stated as percentages from 0 to 100%. An R-squared of 100% means all movements of a security are completely explained by movements in the index, while an R-squared of 0% indicates that the model explains none of the variability around the mean. Source: Tracking Error is the difference between a portfolio's returns and the benchmark or index it was meant to mimic or beat. Source:

20 Managed by Alambic Investment Management, L.P. 655 Montgomery Street, Suite 1905 San Francisco, California USA