ISSACHAR FUND - A CORE PORTFOLIO FUND
Issachar Fund (LIONX) returns to the original concept of a mutual fund, designed to invest in the manager’s best investment ideas, without constraint, across all markets. This includes the flexibility to manage risk in down market cycles by hedging or moving to cash positions in an effort to protect capital. The Fund is structured as a managed risk, CORE buy‐and‐hold portfolio position. LIONX seeks positive results by actively managing the impact of down markets and exploiting the manager’s investment flexibility in an effort grow the portfolio over full market cycles and provide consistent, low volatility returns.
The Fund is managed by Horizon Capital Management, Inc., owned and operated by Dexter P. Lyons, a 27+ year veteran of the investment industry. Lyons has managed assets for individual and institutional investors through separately managed accounts and mutual funds since 1990. Through LIONX, his time‐tested investment approach is available to investors in a publicly traded No‐Load mutual fund structure with the flexibility of a hedge fund. Lyons is the largest single investor in the fund, which holds 100% of his investable assets.
Objective: Long‐Term Capital Appreciation
Investment Approach: Flexible opportunistic long and/or short investment strategy in which the Fund invests in fixed income and/or equity securities through mutual funds, exchange‐traded funds (ETFs), individual securities and other investment companies. The Fund may take long positions of up to 300% and/or short positions of up to 150% of the Fund’s net assets in fixed income and/or equity securities directly or through the use of total return swaps or futures contracts.
Philosophy: LIONX does not follow the traditional buy‐and‐hold strategy of spreading assets over several investment classes as a way to manage risk. Risk is actively managed in an effort to avoid major market declines and stay invested during major advances. Just because the market goes down, it does not mean that your account has to.
Issachar Fund Risk Disclosure
Mutual Funds involve risks including the possible loss of principal.
The Fund may engage in frequent trading, leading to increased portfolio turnover, higher transaction costs, and the possibility of increased net capital gains, including net short-term capital gains that will be taxable to shareholders as ordinary income when distributed. The Fund may hold cash positions and there is a risk that the sections of the market in which the Fund invests will begin to rise or fall rapidly and the Fund will not be able to sell stocks quickly enough to avoid losses, or reinvest its cash positions into areas of the advancing market quickly enough to capture the initial returns of changing market conditions. The Fund’s investments in large capitalization stocks may underperform Funds that invest primarily in the stocks of lower quality, smaller capitalization companies during periods when the stocks of such companies are in favor. Investments in small-capitalization and mid-capitalization companies involve greater risks and volatility than investing in larger capitalization companies. Small and medium-size companies often have narrower markets for their goods and/or services and more limited managerial and financial resources than larger, more established companies. The Fund is non-diversified, which means it invests a high percentage of its assets in a limited number of securities. A non-diversified fund’s NAVs and total returns may fluctuate more or fall greater in times of weaker markets than a diversified mutual fund.
The Fund invests in debt instruments which have varying levels of sensitivity to changes in interest rates, credit risk and other factors. Many debt instruments are subject to prepayment risk, which is the risk that the issuer of the security will repay principal prior to the maturity date. The Fund could lose money if the issuer or guarantor of a debt security goes bankrupt or is unable or unwilling to make interest payments and/or repay principal. Changes in an issuer’s financial strength or credit rating also may affect a security’s value and have an impact on Fund performance. The value of the Fund’s investment in fixed income securities will fall when interest rates rise and the effect of increased interest rates is more pronounced for intermediate-term or longer-term fixed income obligations owned by the Fund. The Fund will invest a significant portion of its assets in securities that are rated below investment grade or “junk bonds.” Junk bonds may be sensitive to economic changes, political changes, or adverse developments specific to a company. These securities generally involve greater risk of default or price changes than other types of fixed-income securities and the Fund’s performance may vary significantly as a result. The floating rate loans in which the Fund invests are usually rated below investment grade and are generally considered speculative because they present a greater risk of loss, including default, than higher quality debt securities and may be less liquid than higher rated debt securities.
The value of the Fund’s asset-backed securities may be affected by changes in interest rates, the availability of information concerning the interests in and structure of the pools of purchase contracts, financing leases or sales agreements that are represented by these securities, the creditworthiness of the servicing agent for the pool, the originator of the loans or receivables, or the entities that provide any supporting letters of credit, surety bonds, or other credit enhancements. The Fund’s investment in municipal securities carries additional risk including changes in federal, state or local laws that may make a municipal issuer unable to make interest payments when due. Municipal securities backed by current or anticipated revenues from a specific project or specific assets can be negatively affected by the inability to collect revenue, for the project or from the assets. Moreover, an adverse interpretation of the tax status of municipal securities may make such securities decline in value. In addition to the risks typically associated with fixed income securities, loan participations carry other risks, including the risk of insolvency of the lending bank or other intermediary. Loan participations may be unsecured or not fully collateralized, may be subject to restrictions on resale and sometimes trade infrequently on the secondary market.
The Fund uses investment techniques, including investments in futures contracts, forward contracts, options and swaps, which may be considered to be an aggressive investment technique. Investments in such derivatives may general be subject to market risks that may cause their prices to fluctuate over time and may increase the volatility of the Fund. The use of derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives, such as counterparty risk and the risk that the derivatives may become illiquid. The use of derivatives may result in larger losses or smaller gains than investing in the underlying securities directly. Interest rate swaps are subject to interest rate and credit risk. Total return swaps are subject to counterparty risk, which relate to credit risk of the counterparty and liquidity risk of the swaps themselves. There may be an imperfect correlation between the prices of options, futures, and/or forward contract and movements in the price of the securities (or indices) hedged or used for cover which may cause a given hedge not to achieve its objective. There may not be a liquid secondary market for futures contracts and Forward currency transactions include the risks associated with fluctuations in currency. If the Fund uses a hedging instrument at the wrong time or judges the market conditions incorrectly, the hedge might be unsuccessful, reduce the Fund’s investment return, or create a loss. Use of leverage can magnify the effects of changes in the value of the Fund and makes them more volatile and increases the risk for loss in adverse environments. Short positions are designed to profit from a decline in the price of particular securities, baskets of securities or indices. The Fund will lose value if the instrument’s price rises – a result that is the opposite from traditional mutual funds.
Investments in foreign securities and securities that provide exposure to foreign securities involve greater risks than investing in domestic securities. As a result, the Fund’s returns and NAVs may be affected to a large degree by fluctuations in currency exchange rates, political, diplomatic or economic conditions and regulatory requirements in other countries. The Fund also may invest in depositary receipts, including ADRs, which are traded on exchanges and provide an alternative to investing directly in foreign securities. Investments in ADRs are subject to many of the risks associated with investing directly in foreign securities. The laws and accounting, auditing, and financial reporting standards in foreign countries typically are not as strict as they are in the U.S., and there may be less public information available about foreign companies. Investments in emerging markets instruments involve greater risks than investing in foreign instruments in general. Risks of investing in emerging market countries include political or social upheaval, nationalization of businesses, restrictions on foreign ownership and prohibitions on the repatriation of assets and risks from an economy’s dependence on revenues from particular commodities or industries among others.
No-Load mutual funds are sold without a sales charge, however other fees and expenses do apply to an investment in the Fund. (NLD Review Code 3644-NLD-9/7/2017)
Fund Symbol: LIONX
Portfolio Manager: Dexter P. Lyons
Managing client assets since 1990.
Fund Type: Tactical, Alternative,
No‐Mandate, Opportunistic and
Minimum Initial Investment: $1,000
Income Distributions: Quarterly
There is no assurance that future
dividends or capital gains will be paid.
Benchmark: S&P 500 Index
Inception: February 28, 2014
Investment: Direct through
Gemini Fund Services
On several No‐Load, No‐Transaction‐Fee
(NTF) brokerage platforms
Investment Advisor: Horizon
Capital Management, Inc.
Horizon is an independent Registered
Investment Adviser (RIA) with only one
client, the Issachar Fund (LIONX).
c/o Gemini Fund Services, LLC
17605 Wright Street, Suite 2
Omaha, NE 68130