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 Jerry Jordan Commentary:
First Quarter Investment Outlook 2010
2009 was a remarkable year for investors across the spectrum of assets and asset classes (with the exception of high-quality government bonds). With the aggressive aid of the global monetary and fiscal authorities, financial assets were reliquified with successive injections of monetary and fiscal stimulus, especially through the newly favored technique of "quantitative easing." Asset appreciation was enormous for the year, and much more dramatic from the first quarter lows. Commodities and emerging markets did the best, but high-yield bonds and equities in developed markets posted historic recoveries. The worst investments, high-quality government bonds, posted double digit declines as intermediate and long-term interest rates rose.
Our positions experienced significant gains in 2009, both absolutely and relative to benchmarks, notwithstanding the consolidations in many of our holdings in the fourth quarter. In the final quarter, our holdings in energy and other commodity stocks lagged the broad market, despite positive performance of underlying commodity prices (i.e., crude oil advanced over 10% during the quarter).
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Our outlook for 2010 is positive, but is tempered by our expectation of substantial volatility during the year. We expect the U.S. and global economies should experience significant economic acceleration during the year, due to continuing stimulus and easy comparisons. But stocks have had enormous advances and valuation levels in many sectors and regions are neutral at best even given our optimistic expectations for profits. Furthermore, we expect interest rate pressure to continue on the long end of the curve, and, eventually, to spread to short-term interest rates, which currently remain near zero. more›› |
"As we have done this year, we will look to reduce exposure to our favorite groups if they become overbought, and add to positions if they become oversold, both absolutely and relatively." |
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A Conversation with Jerry Jordan
The Jerry Jordan interview, conducted in early January 2010, continues our tradition of expanding on Jerry’s quarterly update and providing investors with a deeper understanding of the Jordan Opportunity Fund manager’s assessment on the economy and investment philosophy.
Q: Are there new themes in the portfolio since we’ve last checked? What’s been changed, what’s been eliminated?
Jerry Jordan: We’ve reduced our U.S. domestic technology holdings to just a modest exposure, virtually to zero. We based these changes on a belief that a lot of the good news is already priced in the stocks. It doesn’t preclude them from going higher; it just means the risks on any short-term disruption become greater. At the same time, we’ve begun to add to our Chinese holdings. more›› |
Mutual Fund Performance as of December 31, 2009 (total return)*
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Shares redeemed or exchanged within 60 days of purchase will be charged a 2.00% fee. Performance data does not reflect the redemption fee, and if it had performance would have been lower. As stated in the current prospectus, the fund’s annual operating expense ratio (gross) is 1.40%. For the most recent month end performance, please call 1-800-441-7013.
Mutual fund investing involves risk. Principal loss is possible. The Fund’s investment parameters are diverse and as such may be subject to different forms of investment risk discussed herein. The Fund invests in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. The Fund invests in smaller companies, additional risks such as limited liquidity and greater volatility. The Fund is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified which involve fund. Therefore, the Fund is more exposed to individual stock volatility than a diversified fund. Investment by the Fund in lower-rated and non-rated securities presents a greater risk of loss to principal and interest than higher-rated securities. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. The Fund may use derivatives such as options to increase its exposure to certain securities. These techniques will result in greater volatility for the Fund, particularly in periods of market declines.
Returns greater than one year are annualized. Total return figures include the reinvestment of dividends and capital gains. On January 21, 2005, a limited partnership managed by the Sub-Adviser reorganized into the Fund. This limited partnership maintained an investment objective and investment policies that were, in all material respects, equivalent to those of the Fund. The Fund’s performance for periods prior to January 2005 is that of the limited partnership. The limited partnership’s expenses during the periods presented were higher than the Fund’s proposed expense ratio. The limited partnership was not registered under the Investment Company Act of 1940 ("1940 Act") and was not subject to certain investment limitations, diversification requirements, and other restrictions imposed by the 1940 Act and the Internal Revenue Code, which, if applicable, would have adversely affected its performance.
While the fund is no-load, management and other expenses still apply. Please refer to the prospectus for further detail.
The S&P 500 Index is a broad based unmanaged index of 500 stocks, which is widely recognized as representative of the equity market in general. You cannot invest directly in an index.
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JordanOpportunity.com
jordan opportunity fund received a 5-Star overall morningstar rating ™
5-STAR OVERALL MORNINGSTAR RATING™
AS OF 12/31/09 OUT OF 1,548 FUNDS IN THE LARGE CAP GROWTH CATEGORY
(The Morningstar Overall Rating© for a fund is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Ratings metrics, which are based on risk-adjusted performance.)*
Jordan Opportunity Fund News
We invite you to review media coverage, featuring Jerry Jordan in print, radio, and television. Please browse our website, and use the links to watch, listen, and read about our strategy for opportunity and growth.
January 2010
Kiplinger’s Personal Finance – Where to Invest in 2010
December 2009
Business Week – The Case for Commodities
November 2009
People’s Daily Online – Top Manager Bets Big on China Firms |
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