|
 Jerry Jordan Commentary:
SECOND Quarter Investment Outlook 2010
When we exited 2009, a year which witnessed some of the biggest equity gains in history, we expected a return of volatility and significant sector rotation, followed by further gains. The stock market did indeed suffer a sharp correction in the second half of January, with the S&P 500 declining 9% from its highs. While the decline was sharp, it ended quickly after two weeks, and the market resumed a steady advance before the S&P 500 finished the quarter up 6%. But rotation did not occur, as the consumer discretionary and technology sectors continued to lead the advance. Commodity and late cycle sectors continued to lag relatively, as they did in the Fourth Quarter. Emerging markets also lagged relative to the U.S. and other developed market bourses, with a notable decline in the Chinese market of 5%, as measured by the Shanghai SE A Share Index.
Given this market backdrop, our positions lagged materially, after having performed so well last year. Energy stocks and Chinese growth stocks, two areas we particularly favored, performed poorly on a relative basis. Most of our investment themes we believe are long-cycle growth stories, whereas stocks that have benefited strongly from short term stimulus, such as retailers, continued to outperform. We expect that the market will return to the longer cycle themes, as long as the economy continues to recover and confidence builds.
|
We remain cautiously bullish on the stock market, and believe it should eventually end the year higher. Near term, however, we feel some caution is warranted given the big advances experienced in the last twelve months and the fact that the level of general optimism is reaching high levels. Many stocks that have led in the advance in the last six months now have neutral valuations at best, and very high earnings expectations. more›› |
"The economic recovery is proceeding largely as we expected, with sharp percentage GDP gains that are mostly a function of activity returning to more normal levels" |
|
Mutual Fund Performance as of March 31, 2010 (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.
|
|
|
|
JordanOpportunity.com
jordan opportunity fund received a 5-Star overall morningstar rating ™
5-STAR OVERALL MORNINGSTAR RATING™
AS OF 3/31/10 OUT OF 1,547 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.
Spring 2010
Kiplinger's Mutual Funds 2010
Winners scorecard: Funds with the best returns
02.24.2010
Market Watch
Chinese Consumers are key to Fund Manager's Focus
01.19.2010
PBS - Of Mutual Interest
Of Mutual Interest- Jerry Jordan of the Jordan Opportunity Fund
01.18.2010
Morningstar
Fund Q & A Opportunities Amid Growth Stocks
|
|
