Investment Philosophy


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NewMark Risk Managed Opportunistic Fund aims to generate positive investment returns in varying market conditions. In an environment of increased market volatility and economic uncertainty, the fund seeks to take advantage of investment opportunities with attractive risk/reward profiles that are undervalued all the while monitoring and managing portfolio risk and market exposure. The Fund employs a flexible yet disciplined investment process as it seeks to take advantage of opportunities as they arise and will reduce risk and market exposure when opportunities are scarce.

The fund utilizes its proprietary model to assess factors it considers critical and influential to capital market conditions. The factors being monitored include macroeconomic trends, monetary policies, anticipated inflation, interest rates, investor sentiment, market technicals, consumer sentiment, corporate earnings, market volatility trend, market valuation, investment flows and other factors influential to the capital markets. Insights gained from the proprietary model are combined with the availability of attractive investment opportunities to manage the fund’s portfolio risk characteristics and its exposure to risk assets. The fund’s manager aims to minimize capital losses during periods of unfavorable market conditions. Thus, from time to time, when appropriate, the fund manager may take a temporary defensive stance in an attempt to respond to adverse market, economic, political, or other conditions.
In making investment decisions for the fund, the Portfolio Manager primarily focuses on the competitive advantages and balance sheet strengths of the underlying companies whose securities it considers undervalued and unrecognized by the investment community.
The fund’s equity securities will generally fit into one of the following four categories:
Fallen Angels: Companies in attractive niches with durable balance sheets and compelling valuations that have experienced a temporary setback and have underperformed in the short term.
Special Situations: Opportunities with attractive characteristics and valuations that are overlooked or under-appreciated by investors or are temporarily out of favor.
Value Momentum Opportunities: Investments with strong business tailwinds with appealing valuations which are likely to contribute to returns in the near future.
Stable Growth: Investments with proven track records and reliable earnings characteristics and growth that we consider as undervalued.
“In general, we invest only when and where we find compelling value with risk management being our priority” Bob Rezaee, Portfolio Manager for NewMark Funds.
When opportunities are abundant, the fund will likely be fully invested. When opportunities are scarce or when the proprietary model signals caution, the fund will be underinvested to protect capital and minimize losses. The fund’s manager will generally reduce portfolio risk by decreasing holdings of risk assets, increasing cash holdings, purchasing high quality fixed income debt securities, shorting securities, and purchasing inverse ETFs and put options.
The fund will invest in preferred stocks and fixed income securities with compelling valuations and attractive yields. The fund’s manager will short individual stocks from time to time that it considers vulnerable due generally to intensifying competition, deteriorating balance sheet, weakening end market and growing excessive valuation.
As always, you should refer to the fund’s Prospectus and Statement of Additional Information for complete details regarding the fund including its investment philosophy and corresponding risks. Please read it carefully before investing.