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 Jerry Jordan Commentary:
Third Quarter Investment Outlook 2010
The global equity markets suffered sharp losses in the second quarter, after reaching new recovery highs in April. The reversal in investor sentiment was triggered by the return of contagion fears in the wake of the sovereign debt crisis in Europe, the emerging economic deceleration in China, and the shock of the British Petroleum oil spill disaster. Several doses of disappointing U.S. economic news helped to turn investor expectations negative. That said, we believe that this should allow for higher prices over the next six to 12 months in our portfolio companies.
We had entered the second quarter with a cautious outlook, feeling that investor expectations had become too optimistic in light of the gains of the previous 12 months. Despite exceptionally good corporate profits experienced in the first quarter, stocks had risen 75% from the bear market low the previous year. We stated that we expected a volatile price environment to occur. Our aggregate outlook for the year was, and continues to be, positive. Now that the market has experienced a meaningful correction of the previous year’s gains, we believe that the risk/reward relationship for many stocks is becoming positive again. We continue to believe that the stock market may experience higher highs later in the year and into 2011.
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While our accounts have suffered modest year-to-date declines in line with that of the market, our relative performance has improved sharply in the last two months after we repositioned the accounts in what we feel are higher quality and more defensive equities. We continue to believe that higher quality and large capitalization stocks have the potential to outperform for the remainder of the year and thereafter. more›› |
"While we expect the stock market to recover from its recent decline, we expect a significant change in market leadership with a sharp tilt in favor of large capitalization growth stocks..." |
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A Conversation with Jerry Jordan
The Jerry Jordan interview, conducted in early July 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: If the European Union loses some of its constituents for the euro, say Greece, Spain, or possibly Ireland, what would be the implication for investors?
Jerry Jordan: In the short term, it’s a negative. But, longer term, it would be a positive although I think it is unlikely to happen. If it did, you’d be getting rid of a lot of the weak areas. I just don’t think it is a highly likely event. more›› |
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Mutual Fund Performance as of June 30, 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 1.47%. 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 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 6/30/10 OUT OF 1,545 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
February 2010
Market Watch – Chinese Consumers are key to Fund Manager's Focus
January 2010
PBS -Of Mutual Interest – Of Mutual Interest- Jerry Jordan of the Jordan Opportunity Fund |
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