Portfolio Manager Summary - Cross Shore Discovery Fund

Transcription

Registered Investment Advisor
Portfolio Manager Summary
Cross Shore Discovery Fund
111 Great Neck Road, Suite 210
Great Neck, NY 11021
Tel: (516) 684-4040
Contact:
Investor Relations
(516) 684-4040
[email protected]
1 International Place, 24th Floor
Boston, MA 02110
Tel: (617) 310-4801
March, 2015
Table of Contents
FIRM
PORTFOLIO MANAGER(S)
PAGE

Armistice Capital
Steven Boyd
Page 4

Atika Capital Mgmt
Brad Farber
Page 5

Bloom Tree Partners
Alok Agrawal
Page 6

Game Creek Capital
Sean Murphy
Page 7

Light Street Capital Mgmt
Glen Kacher
Page 8

Lomas Capital
Dan Lascano, Charlie LoCastro, Rob McIntosh
Page 9

Long Pond Capital
John Khoury
Page 10

Riverloft Capital Mgmt
Marc Lehmann
Page 11

Sachem Head Capital Mgmt
Scott Ferguson
Page 12

Shellback Capital, L.P.
Jonathan Hilsabeck, Douglas Gordon, Donald Jabro
Page 13

Suvretta Capital Mgmt
Aaron Cowen
Page 14

Tiger Legatus Capital Mgmt
Jesse Ro
Page 15
2
Armistice Capital
Fund:
Inception Date:
Focus:
Auditor:
Administrator:
Legal:
Firm AUM (12/31/14):
Weighting (2/28/2015):
Armistice Capital Offshore Fund, Ltd.
May 2012
Event Driven / Trading
KPMG
SS&C Fund Services
Seward & Kissel
$135 Million
8.2%
Gross / Net Exposure
Gross Exposure is the sum of the absolute values of the funds long and short exposures.
Net Exposure is the funds total long exposure less the funds total short exposure.
Armistice Capital is a value-oriented and event-driven hedge fund that is
focused exclusively on the healthcare and consumer sectors. The Fund will
invest opportunistically across the capital structure, generating proprietary ideas
with the goal of identifying undervalued themes and inflection points in the
market place. The Fund invests primarily in small and mid cap companies, with
a 3-9 month time-frame for catalyst realization. Bottom up financial models are
constructed to assess all components of a company’s capital structure, with an
emphasis on free cash flow development. In all of its investing activities, the
Fund emphasizes capital preservation and seeks to mitigate risk through various
hedging strategies at both position and portfolio levels.
Steven Boyd is the founder and portfolio manager of Armistice Capital. Prior to
founding Armistice in 2012, Mr. Boyd had been a senior research analyst at
Senator Investment Group (2008-2011). Prior to joining Senator, Mr. Boyd was
an associate at York Capital, focusing primarily on investments in consumer and
healthcare equities (2007-2008). Prior to York, Mr. Boyd was an analyst at SAB
Capital Management, a value-oriented long/short equity hedge fund (20052007). Mr. Boyd began his career as a business analyst at McKinsey & Company
(2003-2005). He received a B.S. in Economics (with a concentration in Finance)
as well as a B.A. in Political Science from The Wharton School of the University
of Pennsylvania (2003).
Average Gross Exposure: 275%
Average Net Exposure: 45%
3
Atika Capital Management
Fund:
Inception Date:
Focus:
Auditor:
Administrator:
Legal:
Firm AUM (12/31/14):
Atika Offshore Fund, Ltd.
February 2013
Value
KPMG
Northern Trust
Seward & Kissel
$114 Million
9.2%
Atika Capital Management invests primarily in publicly-traded global equities,
both long and short, with a particular focus on the healthcare
technology/media/telecommunications (“TMT”), and consumer sectors. Atika
Capital Management employs a fundamentally-driven research process and
believes that investing based on in-depth fundamental analysis will allow one to
obtain higher conviction and afford oneself the opportunity to size a position
aggressively, thus helping to generate a superior return on investment. Atika
believes that there is a time arbitrage in certain segments of the equity market and
those willing to hold positions longer can capitalize on opportunities created by the
intense focus on short-term performance.
Atika has developed a proprietary
model to support buy or short decisions and help determine position sizing.
Individual weightings are determined by probability weighted risk/reward,
liquidity, and size of related holdings. Atika diversifies investments in order to
manage volatility and minimize downside risk in the portfolio, though it may hold
large positions (e.g., exceeding 10%) in individual equities (measured at the time of
investment).
Brad Farber is the Founder, Managing Member & Portfolio Manager of Atika
Capital Management (“ACM”). Prior to founding ACM in September 2012, Mr.
Farber served as a Portfolio Manager for Gilder, Gagnon, Howe & Co., (GGHC) an
investment firm with approximately $5 billion under management, where he
managed a $50 million long/short equity portfolio since January 2001. Before
joining GGHC in April 1999, Mr. Farber spent two years as an equity research
analyst at UBS covering the medical technology and biotechnology sectors. Mr.
Farber is a CFA Charter holder and received a BA in International Relations from
the University of Michigan in 1996.
4
Bloom Tree Partners
Fund:
Inception Date:
Focus:
Auditor:
Administrator:
Legal:
Firm AUM (12/31/14):
Bloom Tree Offshore Fund, Ltd.
October 2010
Opportunistic
KPMG
SS&C Fund Services
Seward & Kissel
$934 Million
7.5%
Bloom Tree is a global, fundamental investment manager that utilizes
primary research to develop original and proprietary views on specific
companies, industrial sectors and the macroeconomic environment to identify
compelling investments. The long portfolio will focus on high-quality
businesses that generate a high return on investment capital (ROIC) and
management teams that demonstrate the ability to allocate capital efficiently.
The short portfolio will focus on businesses with deteriorating fundamentals,
declining earnings power, high valuations with inflated expectations, weak
financial positions and/or poor management teams. Short positions require a
business that is fundamentally flawed with pressure on its terminal value.
Alok Agrawal is the portfolio manager of Bloom Tree Partners. Prior to
Bloom Tree, Mr. Agrawal worked at Tiger Management where he served as
an analyst and co-portfolio manager (2005-2007). Prior to joining Tiger
Management, Mr. Agrawal served as an associate at Bessemer Venture
Partners (2002-2005). Mr. Agrawal began his professional career at Oracle
Corporation in 1996 where he led a development team, started a new product
group and oversaw a product management team. He left Oracle in 2000 to
attend Harvard Business School where he was elected a Siebel Scholar and
Baker Scholar (2002). Mr. Agrawal earned his M.S. in Computer Science from
the University of California, Berkeley (1996) and a Bachelor of Technology in
Computer Science from the Indian Institute of Technology, Kanpur, where he
was awarded the President of India Gold Medal for distinguished academic
achievement (1994).
5
Game Creek Capital
Fund:
Inception Date:
Focus:
Auditor:
Administrator:
Legal:
Firm AUM (12/31/14):
Game Creek Offshore Fund, Ltd.
January 2008
Opportunistic
KPMG
SS&C Fund Services
Bingham McCutchen
$95 Million
7.7%
Game Creek is a U.S. long/short equity fund focused on the consumer, media
and telecom sectors that seeks to generate alpha via a concentrated, “best ideas”
equity portfolio. Game Creek employs a rigorous, bottoms-up due diligence
process to identify companies trading at attractive valuations relative to cash
flow, earnings and / or assets. Looking across the mid to large cap spectrum,
Sean and the team seek out companies where recognized expectations are low
but the business franchise, potential earnings power or proven cash flow suggest
an outsized opportunity to achieve superior risk adjusted returns. Idea
generation stems from company meetings and visits, industry conferences,
financial and trade publications, and valuation screens. To assess company
management, Game Creek will talk to former employees, consultants, board
members, competitors, suppliers, and customers. Utilizing direct and indirect
channel checks, Game Creek gathers as much information as possible to develop
an in-depth mosaic on each company. On the short side, the team seeks to
identify companies with deteriorating fundamentals, inappropriate capital
structures, flawed strategies or excessive expectations.
Sean Murphy is the portfolio manager of Game Creek Capital. Prior to joining
Game Creek in August 2008, Sean Murphy was a senior analyst with Vardon
Capital Management where he followed the consumer, media, and telecom
sectors (2000-2007). Prior to joining Vardon, Mr. Murphy worked as a media
analyst at Credit Suisse First Boston (1997-2000). Mr. Murphy earned a B.A. cum
laude from the University of Notre Dame (1997) and is a holder of the Chartered
Financial Analyst designation.
6
Light Street Capital Management
Fund:
Inception Date:
Focus:
Auditor:
Administrator:
Legal:
Firm AUM (12/31/14):
Light Street Xenon, Ltd.
July 2010
Technology, Media & Telecom
KPMG
Mitsubishi Financial Services
Shartsis Friese
$700 Million
8.5%
Light Street Capital is a global, fundamentally driven, long/short equity fund
focused on Technology, Media and Telecom (TMT). Light Street seeks to
identify companies where technological innovations have the ability to create
significant secular change. Light Street’s research focus on technological
innovation and disruptive product cycles ensures that their investments have
an inherent transformational change or event as part of their thesis. Located in
Silicon Valley, Light Street employs a bottom up and top down investment
approach in the TMT space. The team regularly speaks with industry
innovators, founders and thought leaders. These relationships with leading
venture capitalists and industry veterans assists the team in better
understanding why capital is flowing towards particular ideas and people.
From a bottom up perspective, Light Street employs a rigorous investment
process to fully understand a company’s business, management and financial
edge.
Glen Kacher is the portfolio manager and founder of Light Street Capital.
Prior to founding Light Street in May 2010, Mr. Kacher was a managing
director at Integral Capital Partners, covering software, internet media,
eCommerce, mobile hardware, PC hardware, security software and
networking investments (1998-2010). Mr. Kacher also led or co-led many of
Integral’s venture investments during his tenure. Prior to that, Mr. Kacher was
a research analyst with Tiger Management, focusing on investments in
software, hardware, and networking industries (1993-1996). Mr. Kacher holds
a B.S. in Commerce from the University of Virginia’s School of Commerce
(1993); and an M.B.A. from Stanford University’s Graduate School of Business
(1998).
7
Lomas Capital
Fund:
Inception Date:
Focus:
Auditors:
Administrator:
Legal:
Strategy AUM (12/31/14):
Lomas Capital Ltd.
October 2012
Opportunistic
Pricewaterhouse Coopers
International Fund Services
Ropes & Gray
$538 Million
7.9%
Lomas Capital uses bottom-up, fundamental analysis and its extensive network of industry
and investment contacts, in conjunction with “street” research to source potential
investment ideas. The key underlying principle behind Lomas’ investment strategy is
finding opportunities that have an asymmetrical risk/reward profile. Each portfolio
manager and analyst has a comprehensive sector focus and a specific research
methodology. Underappreciated and/or emerging themes, secular growth trends,
misunderstood companies, post reorganization special situation opportunities trading at a
discount to fundamental value and companies with attractive private market valuations are
some characteristics that Lomas seeks in its potential positions. Specific investment
opportunities will be developed through a rigorous examination of issuer and industry
fundamentals and will be considered within the context of the overall macroeconomic
environment. Investment opportunities will often be contrarian in nature, although the
Fund’s investment strategy is not strictly wedded to either value or growth. Rather, the
Investment Manager generally will employ a flexible approach which pursues investment
opportunities that have the best risk/reward profile, irrespective of the investment style
employed. Lomas Capital was co-founded in 2012 by Dan Lascano, Charlie LoCastro and
Ron McIntosh (the “Co-Founders”). All three Co-Founders previously worked together for
a decade as senior members of the Caxton Equity Group.
Dan Lascano is Chief Investment Officer and Co-Founder of Lomas. He has over 21 years
of investment experience where he has focused on the consumer sector, and has also
invested across many sectors as a “generalist.” From 1999 to 2011, he was a Senior
Managing Director and Equity Holder of Caxton Associates where he was responsible for
portfolio construction and overall co-management of the equity group.
Charlie LoCastro is a Senior Portfolio Manager and Co-Founder of Lomas. He has over 27
years of investment experience focusing on the industrial and material sectors. From 2002
to 2011 Mr. LoCastro was a Senior Portfolio Manager at Caxton Associates where he was
responsible for, and had discretion over, investments in industrial and material stocks.
Ron McIntosh is a Senior Portfolio Manager and Co-Founder of Lomas. He has over 26
years of investment experience focusing on the financial sector. From 2003 to 2011, Mr.
McIntosh was a Senior Portfolio Manager at Caxton Associates where he was responsible
for, and had discretion over, investments in financial stocks.
8
Long Pond Capital
Fund:
Inception Date:
Focus:
Auditor:
Administrator:
Legal:
Firm AUM (12/31/14):
Long Pond Offshore, Ltd.
October 2010
Real Estate
Rothstein Kass
SS&C Fund Services
Maples & Calder
$1.53 Billion
9.9%
Long Pond Capital is a global long/short real estate equity fund with an
intense focus on bottom up fundamental, value oriented stock picking. The
fund manager uses a contrarian, private equity style approach to public equity
investing and seeks to identify complex, asymmetric risk/reward opportunities
in REIT's, Real Estate Operating Companies and Real Estate Related
Companies. The investment team implements a rigorous research process, with
a vigilant concentration on downside protection, to understand a company's
balance sheet, why a security is cheap/expensive and why the security will
cease to be cheap/expensive. As part of the research process, the investment
team will perform in depth asset-by-asset valuations on a prospective
investment, speak to private investors, lenders and real estate brokers, review
similar transactions, tour assets and assess management incentives. Risk of loss
is critical to each investment thesis and therefore the portfolio manager
maintains an intense focus on liquidity, leverage, asset/liability mismatch and
seeks out positions with embedded downside protection.
John Khoury is the founder and portfolio manager of Long Pond Capital. Prior
to starting Long Pond in October 2010, Mr. Khoury spent 9 years at Wesley
Capital, a long short real estate hedge fund, where he progressed from analyst
to co-portfolio manager (2002-2010). Prior to Wesley, John was an analyst at
DLJ Real Estate Capital Partners (2001-2002), and an investment banking
analyst in the real estate group at Lazard (1999-2001). John graduated from the
Wharton School at the University of Pennsylvania with a B.S. in Economics
(1999).
9
Riverloft Capital Management
Fund:
Inception Date:
Focus:
Auditor:
Administrator:
Legal:
Firm AUM (12/31/14):
Riverloft Offshore Fund Ltd.
May 2011
Opportunistic
KPMG
SS&C Fund Services
Proskauer
$144 Million
5.6%
Riverloft Capital Management employs an event-driven, value-oriented strategy
utilizing fundamentally driven research to identify and invest in companies that
meet strict criteria for value and quality across the entire capital structure. They focus
on businesses that are undervalued due to market dislocations, and attempt to seek
out opportunities with an event path to unlock value within a defined time
horizon. The Fund’s strategy encompasses techniques honed by Marc Lehmann
from his career at JANA Partners, Appaloosa and SAC Capital for the identification
of the intersection of multiple dynamics (i.e. event, value, behavioral and technical
factors) to help in the sourcing and monitoring of ideas and investments. Tactical
trading is used as an overlay on its core portfolio and related securities to fully
leverage research and enhance returns. This is done to quickly adjust portfolio
exposures for risk management measures. Post-investment, Riverloft monitors the
securities with a focus on capital preservation and uses its capital markets expertise
to determine opportune exit points, seeking realizations when the firm’s targeted
value is achieved.
Marc Lehmann, Chief Investment Officer , is the founder and Portfolio Manager of
Riverloft and has almost two decades of event driven and value investing experience.
Prior to Riverloft, Mr. Lehmann was a Partner and Director of Research at JANA
Partners from 2002-2010, a hedge fund with over $7bn in AUM at its peak. Prior to
JANA, Mr. Lehmann sourced and identified distressed special situation investments
at Appaloosa Management from 1999-2002, and served as an Analyst at SAC Capital
from 1995-1997, Morgan Stanley and Lehman Brothers from 1994-1995. Marc
completed his Master of Business Administration at The Wharton School of the
University of Pennsylvania in May 1999, and completed his Bachelor of Science in
Finance and International Business from New York University in December 1993.
10
Sachem Head Capital Management
Fund:
Inception Date:
Focus:
Auditors:
Administrator:
Legal:
Firm AUM (12/31/14):
Sachem Head Offshore, Ltd.
September 2013
Event Driven / Activist
Ernst & Young
Citco
Schulte Roth & Zabel
$2.3 Billion
8.9%
Sachem Head Capital is a value-oriented, long/short hedge fund that will utilize
an activist investment approach within a concentrated portfolio of best ideas. The
Fund employs a rigorous, private equity style research process to understand the
company fundamentals, utilizing both conventional (earnings/operating
multiples) and unconventional metrics (asset value, private market value, value
for control). The Fund will hold 8-16 long positions, with the top 6-8 generally
representing 60% - 80% of long exposure. The Fund will hold 0-15 individual
short positions, including sector and market hedges. Furthermore, Mr. Ferguson
anticipates 0-3 activist investments at any time depending upon the opportunity
set. The Fund views activism as a ‘call option’ on an attractive passive
investment, seeking to deploy capital in companies where Sachem Head can win
as an investor even if they loose as an activist. For passive investments, Mr.
Ferguson generally prefers those with embedded catalysts.
Scott Ferguson is the managing partner and portfolio manager of Sachem Head
Capital. Prior to starting Sachem Head, Mr. Ferguson spent 9 years at Pershing
Square Capital Management, where he joined pre-launch as the first non-portfolio
manager investment professional and partner (2003-2012). At Pershing Square
Mr. Ferguson’s primary role centered on investment idea generation and analysis,
as well as mentoring and developing younger analysts. Mr. Ferguson played a
significant role in numerous active and passive investments while at Pershing
Square. Prior to Pershing Square, Mr. Ferguson earned an M.B.A. from Harvard
Business School (2003). Prior to Harvard Business School, Mr. Ferguson was a
vice president at American Industrial Partners, an LBO firm focused on
investments in companies with potential for value creation from operational and
financial restructuring initiatives (1999 – 2001). Prior to American Industrial
Partners, Mr. Ferguson was a business analyst at McKinsey & Company. Mr.
Ferguson graduated from Stanford University with an A.B. in Public Policy (1996).
Mr. Ferguson also serves on the boards of the Henry Street Settlement and
Episcopal Charities of the Archdiocese of New York, two social service agencies
based in New York.
11
Shellback Capital, L.P.
Fund:
Inception Date:
Focus:
Auditors:
Administrator:
Legal:
Firm AUM (12/31/14):
Shellback Offshore Fund Ltd.
January 2014
Opportunistic / Trading
Ernst & Young
MS Fund Services
Schulte Roth & Zabel
$1.1 Billion
8.4%
Shellback Fund, L.P. employs an equity long/short investing strategy across a
broad range of sectors with a GARP focus. The portfolio managers employ a
rigorous, fundamental bottoms-up approach with a core focus on risk
management, primarily in U.S. equities. The objective is to construct a portfolio
of high conviction “best” ideas with little to no use of broad market ETFs.
Each member of the investment team focuses on a specific sector(s), where a
nuanced understanding and experience can have the greatest impact. Each
sector specialist focuses on selecting investments with best risk/reward profile
and managing sector gross/net exposure. Jon Hilsabeck, the Portfolio Manager,
is tasked to manage exposures, weights and positioning (at defined levels) to
maximize returns and mitigate risk across the entire portfolio. His investment
focus is on gaming, lodging & leisure, transportation and the internet. Don
Jabro focuses on industrials, financials and technology. Doug Gordon focuses
on consumer and consumer discretionary. Shellback Capital, LP was founded in
2013 by Jonathan C. Hilsabeck, Douglas A. Gordon and Donald D. Jabro. Each
partner owns one-third of the Management Company.
Jonathan C. Hilsabeck worked from 1999 to 2013 at Vinik Asset Management as
a Portfolio Manager (2004-2013) and Senior Equity Analyst.
Douglas A. Gordon worked from 2001 to 2013 at Vinik Asset Management as a
Portfolio Manager (2002-2013) and Senior Equity Analyst. From 1998 to 2001.
Donald D. Jabro worked from 1998 to 2013 at Vinik Asset Management as a
Portfolio Manager (2002-2013) and Senior Equity Analyst.
12
Suvretta Capital Management
Fund:
Inception Date:
Focus:
Auditor:
Administrator:
Legal:
Firm AUM (12/31/14):
Suvretta Offshore Fund, Ltd.
September 2012
Opportunistic
KPMG
SS&C Fund Services
Seward & Kissel
$1.3 Billion
10.1%
Suvretta Capital is a global, long/short fund with a focus on North America and
Western Europe. The Fund seeks to identify opportunities across the investment
spectrum (Value, Growth & GARP) with a focus on industry before company.
Mr. Cowen’s belief is that industry fundamentals drive stock performance as
much as individual company performance. Therefore, understanding industry
dynamics from a top down perspective is equally as important as understanding
company fundamentals. Suvretta wants to deploy capital in industries with the
strongest secular growth, owning the best companies in the space. Conversely,
shorting the worst companies in weak and contracting industries. The Fund will
have two components, core long-term investments (60% - 80%), and
opportunistic investments (20% - 40%). Top down macro views integrated into
portfolio sizing and positioning of gross and net exposures.
Aaron Cowen is the founder and portfolio manager of Suvretta Capital. Prior to
forming Suvretta, Mr. Cowen served as a portfolio manager at Soros Fund
Management (2011-2012). Before joining Soros Fund Management Mr. Cowen
served as the chief investment officer at SAC Capital (2008-2010). Before joining
SAC Capital Mr. Cowen was a partner and managing director at Karsch Capital
Management where he played an integral role in growing AUM from $230
million - $3.3 billion (2002-2008). Prior to his employment with Karsch Capital,
Mr. Cowen worked as a research analyst at Fidelity Investments, The Baupost
Group and Lehman Brothers (1994-2001). Mr. Cowen graduated with a B.S. in
Finance and a B.S.E. in Bioengineering from the University of Pennsylvania
(1994), and an M.B.A. from MIT Sloan School of Management (2002).
13
Tiger Legatus Capital Management
Fund:
Inception Date:
Focus:
Auditor:
Administrator:
Legal:
Firm AUM (12/31/14):
Tiger Legatus Offshore Fund Ltd.
December 2009
Value
Ernst & Young
HedgeServ Limited
Seward & Kissel
$392 Million
8.2%
Tiger Legatus’ investment strategy adheres to a stringent research process in
order to identify investments where it believes the market has substantially
misinterpreted its intrinsic value. The Fund employs a fundamentals based
investment approach with a view toward a medium/long-term investment
period, by investing in equities, long and short. The strategy is based upon a
consistent, repeatable investment process focused on fundamental analysis to
construct a portfolio where both longs and shorts to profitability. Independent
research and conclusions are core to such a process. To generate investment
ideas, the Fund draws on knowledge and experience within core industries that
its investment professionals have gained over their investment careers. At times,
investment ideas come from adjacent industries where observations of change in
the core industries could result in investment themes in other industries. When
an investment idea has been identified the portfolio manager and his team will
conduct in-depth research, which includes company visits, management
meetings, interviewing suppliers and customers, and analyzing competitors,
with each of these efforts focused on developing an investment thesis as to why
the market is misinterpreting a company’s intrinsic value.
Jesse Ro, Portfolio Manager, founded Tiger Legatus in December 2009. Prior to
founding Tiger Legatus, Mr. Ro was a Portfolio Manager and Analyst at Viking
Global Investors from 2004 to 2008, where he managed a stand-alone long/short
equity portfolio from 2005 to 2008, investing in a wide variety of industries and
geographies. Prior to Viking, Mr. Ro was an analyst at Axial Capital (2002-2003),
a fund under the Tiger Management umbrella. Earlier in his career, Mr. Ro was
with Bear Stearns & Co. Inc., where he held positions in the Merchant Banking
Group and in the Technology Group within the Investment Banking Division.
Mr. Ro received his BS in Economics, magna cum laude, with a concentration in
Finance from the Wharton School of the University of Pennsylvania in 1997.
14
Notes

The managers listed represent the active managers in Cross Shore Discovery Fund, as of February 28, 2015.

This summary is based on information provided to Cross Shore Capital Management, LLC by the various fund managers and is believed to be accurate; however Cross Shore Capital
Management, LLC has not independently verified all of the following data.
Cross Shore Capital Management, LLC maintains the right to add or remove managers at its discretion.
This publication is for informational purposes only and is not intended as an offer to purchase interest in Cross Shore Discovery Fund. Full details are available in the Prospectus. While
reasonable care has been taken to ensure that the information herein is factually correct, Cross Shore Capital Management, LLC makes no representation as to its accuracy or completeness. The
information herein is subject to change without notice.
There can be no assurance the Managers will maintain exposure levels comparable to their historical exposures.




Data presented is from respective fund inception through February 28, 2015. This information is presented merely to show information related to our underlying managers for the periods
presented and is not intended to imply any comparison to the Cross Shore portfolios either in composition or element of risk.

Investors should carefully consider the investment objectives, risks, charges and expenses of the Cross Shore Discovery Fund. This and other important information about the Fund is
contained in the prospectus, which can be obtained at www.crossshorefunds.com or by calling 844-300-7828. The prospectus should be read carefully before investing. The Cross Shore
Discovery Fund is distributed by Unified Financial Securities, Inc (Member FINRA).

An investment in the Fund is speculative, involves significant risk and is not suitable for all investors. It is possible that you may lose some or all of your investment and attempts by the Fund to
manage the risks of investing in Portfolio Funds does not imply that your investment in the Fund is low risk or without risk. An investment in the Fund is illiquid and is not suitable for you if you
need access to the money you invest. You may not have access to the money you invest for an indefinite period of time and you should not expect to be able to sell your Shares regardless of how
your investment in the Fund performs. You do not have the right to require the Fund to redeem or repurchase your Shares although the Fund may periodically offer to repurchase Shares on such
terms as may be determined by the Fund's Board of Trustees ("Board"). Shares are not, and are not expected to be, listed for trading on any securities exchange. To the Fund's knowledge, there is
no, nor will there be, any secondary trading market for the Shares. Shares are subject to substantial restrictions on transferability and resale and may not be transferred or resold except as
permitted under the Fund's Declaration of Trust. Because you may not be able to sell your Shares, you will not be able to reduce your investment exposure to the Fund on any market downturn.
Please see additional disclosure of Risks in the Prospectus.

Control Risk – The Adviser will not have control of, or have the ability to exercise influence over, the trading policies or strategies of a Portfolio Fund. Investment decisions of the Portfolio Funds
are also made independently of each other so that, at any particular time, one Portfolio Fund may be purchasing shares of an issuer whose shares are being sold at the same time by another
Portfolio Fund. Transactions of this sort could result in the Fund directly or indirectly incurring certain transaction costs without accomplishing any net investment result.
Expense Layering Risk – In addition to its own expenses, the Fund will also bear its allocable share of the costs and expenses of each Portfolio Fund, including its allocable share of the
management and incentive compensation paid to an Investment Manager. As a result, the Fund’s investments in the Portfolio Funds may result in the Fund paying higher expenses than other
funds with similar investment objectives and strategies or if it invested directly in the securities held by the Portfolio Funds. Also, each Investment Manager generally will be entitled to receive a
management fee of between 1% and 2% and a performance-based allocation, expected to range up to 20% of a Portfolio Fund’s net profits.
Long/Short Equity Strategy Risk – The success of a long/short equity strategy is contingent upon an Investment Manager’s ability to correctly identify investment opportunities with the highest
probability of success (long positions) and/or those with the highest probability of failure (short positions). Substantial losses may be recognized as a result of the implementation of this strategy.



Before making an investment decision, you or your adviser should consider factors such as net worth, income, age, risk tolerance and liquidity needs in evaluating whether the Fund is a suitable
investment for you. Short-term investors and investors who cannot bear the loss of some or all of their investment or the risks associated with the limited liquidity of an investment in the Fund
should not invest in the Fund.
15

Portfolio Manager Summary - Cross Shore Discovery Fund

Transcription

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