ORINDA, Calif.--()--Effective December 1, 2012, Litman Gregory Masters Funds has hired Turner Investments, L.P. as a sub-advisor to the Litman Gregory Masters Smaller Companies Fund. Frank Sustersic will be the portfolio manager on the account. Turner replaces Copper Rock Capital Management as one of the fund’s two growth-oriented managers, and will represent one-fifth of the fund’s assets, a weighting equal to that of the fund’s four other sub-advisors. The overall fund portfolio will continue to be diversified by investment style.
The fund’s sub‐advisors are listed below and each retains the very high conviction of Litman Gregory’s research team:
- Jeffrey Bronchick of Cove Street Capital
- Dennis Bryan and Rickard Ekstrand of FPA
- Bill D’Alonzo and Ethan Steinberg of Friess Associates
- Frank Sustersic of Turner Investments, L.P.
- Dick Weiss of Weiss Capital Management
Sustersic’s Investment Philosophy:
Sustersic manages approximately 20% of the assets of the Smaller Companies Fund. The goal of his fundamental analysis is to produce full-circle analysis utilizing input from financials, competitors, suppliers, customers, and independent research providers to determine if a company will exceed, meet, or fall short of consensus earnings expectations. Understanding what is factored into consensus numbers is important to Sustersic. He accomplishes this by using sell-side models, as well as talking to sell-side analysts about specific modeling expectations ... Read on.
About the Litman Gregory Masters Funds
The Litman Gregory Masters Funds include five equity funds and one Alternative Strategies Fund. Each fund is run by multiple sub‐advisors selected by Litman Gregory who seeks to hire managers it believes to be exceptionally skilled. Each equity sub‐advisor runs a concentrated portfolio consisting of their highest-conviction holdings. The goal is to benefit from the stock-picking skills of exceptional stock pickers, focusing on their highest‐conviction ideas while gaining overall fund‐level diversification by including multiple sub‐advisors, each using a distinct stock‐picking approach, on each fund. The Alternative Strategies Fund combines four different alternative oriented investment strategies and sub‐advisors to run the overall fund portfolio. Unlike the equity funds, this fund’s individual sub‐advisor sleeves are not run as concentrated portfolios.
About Litman Gregory
Litman Gregory Fund Advisors, LLC is the advisor to the Litman Gregory Masters Funds and as such is responsible for sub‐advisor due diligence and selection, day‐to‐day coordination with the sub‐advisors, monitoring the individual performance and capabilities of the investment managers, and fund administration. Since 1987 the Litman Gregory team has researched, analyzed, and written about hundreds of stock‐picking teams and mutual funds, and put their ideas to the test by designing and successfully investing in portfolios of funds. Drawing on insights gained from years of evaluating and analyzing mutual funds, Litman Gregory is distinctly qualified to oversee the funds’ operations. Litman Gregory Fund Advisors is an affiliate of three other separate but related Litman Gregory companies, all based on the core expertise of investment‐manager and asset‐class research and selection: Litman Gregory Asset Management, LLC, which has provided investment management services to individuals, family groups, foundations, and endowments since 1987; Litman Gregory AdvisorIntelligence, a web‐based investment research service for financial advisors; and Litman Gregory Portfolio Strategies.
Diversification does not assure a profit nor protect against loss in a declining market.
The funds’ investment objectives, risks, charges, and expenses must be considered carefully before investing. The summary and statutory prospectuses contain this and other important information about the investment company, and may be obtained by calling 1‐800‐960‐0188, or visiting www.mastersfunds.com. Read them carefully before investing.
Mutual fund investing involves risk. Principal loss is possible. Each of the funds may invest in foreign securities. Investing in foreign securities exposes investors to economic, political, and market risks and fluctuations in foreign currencies. Each of the funds may invest in the securities of small companies. Small‐company investing subjects investors to additional risks, including security price volatility and less liquidity than investing in larger companies.
Litman Gregory Masters Focused Opportunities Fund & Litman Gregory Masters Value Fund are non‐ diversified funds, which means that they may concentrate more assets in fewer individual holdings than diversified funds. Though primarily equity funds, they may invest a portion of their assets in securities of distressed companies. Debt obligations of distressed companies typically are unrated, lower rated, in default or close to default and may become worthless. The International Fund will invest in emerging markets. Investments in emerging market countries involve additional risks such as government dependence on a few industries or resources, government‐imposed taxes on foreign investment or limits on the removal of capital from a country, unstable government, and volatile markets.
The Alternative Strategies fund will invest in debt securities and derivatives. Investments in debt securities typically decrease when interest rates rise. This risk is usually greater for longer‐term debt securities. Investments in mortgage‐backed securities include additional risks that investor should be aware of including credit risk, prepayment risk, possible illiquidity, and default, as well as increased susceptibility to adverse economic developments. Investments in lower‐rated and non‐rated securities present a greater risk of loss to principal and interest than higher‐rated securities.
Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management, and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. The fund may make short sales of securities, which involves the risk that losses may exceed the original amount invested. Merger arbitrage investments risk loss if a proposed reorganization in which the fund invests is renegotiated or terminated. Multi-investment management styles may lead to higher transaction expenses compared to single investment management styles. Outcomes depend on the skill of the sub-advisors and advisor and the allocation of assets amongst them.
Litman Gregory Fund Advisors, LLC is ultimately responsible for the performance of the funds due to its responsibility to oversee the investment sub‐advisors and recommend their hiring, termination and replacement.
References to other mutual funds should not be deemed an offer to sell or solicitation of an offer to buy shares of such funds.
The funds are distributed by Quasar Distributors, LLC.