Strategy
The Fund bases its strategy on investing in securities
with strong financial fundamentals and excellent growth prospects. The
basic strategy is to hold positions with a time horizon of at least two
years for maximum price appreciation. Generally,
the Fund tends to focus on small to mid-cap companies that do not receive
high level of analyst coverage. Such relatively unknown companies often
produce returns superior to widely followed enterprises.
The Fund avoids market timing and frequent trading, believing that this approach typically hurts, rather than enhances, overall performance. To this end, the Fund intends to stay fully invested, which generates maximum potential for excellent returns. While the Fund invests in a number of different companies in different industries, diversification solely to achieve sector, market capitalization, geopolitical location, or any other type of representation is not an explicit goal.
The fund may realize additional profits from the inevitable failure of the vast majority of options and derivative traders who attempt to time the market. This strategy enables the Fund to dampen the effects of market declines, generate income when the underlying securities remain stagnant, and keep pace with rising valuations. Etalon should therefore be able to protect assets more effectively than if those assets were invested in individual securities or mutual funds, while providing a higher return than either of those vehicles tend to produce.
The Fund avoids market timing and frequent trading, believing that this approach typically hurts, rather than enhances, overall performance. To this end, the Fund intends to stay fully invested, which generates maximum potential for excellent returns. While the Fund invests in a number of different companies in different industries, diversification solely to achieve sector, market capitalization, geopolitical location, or any other type of representation is not an explicit goal.
The fund may realize additional profits from the inevitable failure of the vast majority of options and derivative traders who attempt to time the market. This strategy enables the Fund to dampen the effects of market declines, generate income when the underlying securities remain stagnant, and keep pace with rising valuations. Etalon should therefore be able to protect assets more effectively than if those assets were invested in individual securities or mutual funds, while providing a higher return than either of those vehicles tend to produce.
Returns-to-Risk Balance
Etalon Fund Compared to Other Investment Vehicles
Etalon Fund Compared to Other Investment Vehicles
Portfolios
Etalon Investments offers two
portfolios with different goals and risk profiles. Etalon Classic is the
Fund’s flagship and the original portfolio that has been market-tested for
over five years. Etalon Discovery is new,
aggressive portfolio introduced to Partners in 2007.
While both portfolios share overall investment philosophy outlined above, capital preservation and risk reduction are not the objectives of the Discovery portfolio. Etalon Discovery will search for rapidly growing companies, businesses selling at discounts due to temporary negative news, corporations in foreign emerging markets, and various other aggressive opportunities. Such opportunities present considerably higher potential returns, which of course implies higher volatility and risk. Discovery portfolio will consider deep-value, "special situation" stocks, for example with too low capitalization or too thinly traded to be suitable for inclusion in the Classic portfolio.
While both portfolios share overall investment philosophy outlined above, capital preservation and risk reduction are not the objectives of the Discovery portfolio. Etalon Discovery will search for rapidly growing companies, businesses selling at discounts due to temporary negative news, corporations in foreign emerging markets, and various other aggressive opportunities. Such opportunities present considerably higher potential returns, which of course implies higher volatility and risk. Discovery portfolio will consider deep-value, "special situation" stocks, for example with too low capitalization or too thinly traded to be suitable for inclusion in the Classic portfolio.
The Etalon Difference
Management Track Record
Management Commitment
Performance-Based Costs
Hidden Costs
Risk
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- 90% of mutual funds under-perform the S&P 500 index over the long term, according to Forbes Magazine
- The Etalon Investments fund manager has delivered above-market performance since the Fund inception.
Management Commitment
- Mutual fund managers are not required and do not typically invest their personal assets in the fund. That means mutual funds often have two separate and distinct goals: making themselves money, and making you money - ranked in that order.
- The Etalon Investments fund manager is a major shareholder in the fund.
Performance-Based Costs
- Mutual funds, and most other hedge funds, charge flat management fees - regardless of the fund's performance
- Etalon Investments charges fees based entirely on fund performance. If you don't make a minimum return, you don't pay anything.
Hidden Costs
- Many mutual funds have buried and confusing costs: A sales charge or "load" (cost to buy into the fund), the sales charge to reinvest distributions (cost to reinvest the annual profits the fund distributes to you), the redemption fees (cost to sell your shares of the fund), and the exchange fee (cost to move money from one fund to another in the same family of funds).
- Etalon does not charge for buying, reinvesting, or selling shares.
Risk
- Mutual funds are heavily regulated by the SEC, so the tactics they use to reduce risk are usually limited to diversification, or taking high cash positions. A high cash position means your money is incurring management fees without producing a return. Over-diversification leads to dilution - many large mutual funds hold so many different stocks that even incredibly strong performance by a fund's top holdings will have negligible impact on the fund's total performance.
- Etalon Investments uses a variety of risk-mitigation techniques such as derivative securities that keep your money working for you, while softening the effects of market volatility.
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