Jordan Opportunity Fund Quarterly Newsletter

Jerry Jordan Commentary:

Fourth Quarter Investment Outlook

In our last quarterly Outlook, we cautioned that stocks were overdue for a correction, and that is what the markets experienced, in the extreme, last quarter. A sudden global credit crunch descended on the debt markets, triggered by the sub-prime mortgage crisis in the U.S., causing global equity markets to experience a precipitous four week decline, erasing most gains on the year, and a complete freeze of the global “deal” market. The “freezing up” of credit conditions was so severe that major central banks injected hundreds of billions of dollars into the world banking system. Ultimately, on Friday, August 17, the US Federal Reserve Bank cut the discount rate 50 basis points (.05%), indicating to lenders, and investors generally, that it could change its tilt against inflation toward a policy of accommodation, and that a cycle of monetary ease had begun.

The Federal Reserve Interest rate cut ended the market rout, which had experienced a selling climax the previous day, and prompted a rapid equity recovery leading some global markets to new highs by the end of the quarter.  more››

"We believe monetary conditions are now accommodative, equity earnings and valuations are still very attractive by historical standards, and many important growth themes continue to offer attractive investment opportunities."

Jerry Jordan—Drilling Down

A quarterly conversation with Jerry Jordan (mid-October 2007) to explore select areas of our Quarterly Outlook, and the investment philosophy that Jerry brings as the Fund manager.

On Deceleration, Recession, and Opportunities for Growth

In our estimation the U.S. economy continues to slow down. Maybe we go into recession, maybe we don't, and maybe we're already in recession when they calculate the number a year from now. But we know we’re slowing down. That being said, there are new highs in the stock market. We have a new high in the Nasdaq, and a new high in the the Dow Jones Industrial Average and in the S&P...  more››

Mutual Fund Performance as of September 30, 2007 (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. As stated in the current prospectus, the Fund's annual operating expense ratio (gross) is 2.0%. For the most recent month end performance, please call 1-800-441-7013 or visit the Fund's website.

JordanOpportunity.com

International Herald Tribune
Catching the bounce in energy stocks

By Conrad de Aenlle
Published: September 14, 2007

...Jerry Jordan, manager of the Jordan Opportunity Fund, has more than one-fourth of his portfolio in energy stocks, with a particular emphasis on drillers and exploration companies, whose growth prospects he finds stronger than those of the international giants.

"I'd rather have Transocean at 8 times earnings than the integrateds at 10," Jordan said. Transocean, the world's largest driller, has been trading between 8 and 9 times the earnings that analysts expect the company to record in 2008.

His other holdings include the American driller Ensco; Suncor Energy, a Canadian company that extracts oil from tar sands, as Encana does, and Devon Energy, an American exploration and production company.

Another reason that he likes smaller, specialized production companies is the potential for a "land grab" by big, multifaceted businesses as resources become scarcer.

"Some international oil companies will say that having production at any price is valuable," Jordan said. "The classic endgame in any energy cycle ought to be more consolidation. That makes Encana, Devon and Suncor acquisition candidates."

Click here for the full article.

 

Jordan Opportunity Fund in the News

10.03.07
TheStreet.com — Smallish Jordan Fund Offers Big Returns

08.19.07
NY Post — Bargain Hunt: Brokers Ripe for Picking

7.26.07
CNBC TV — Hunkering Down with the Financials

7.24.07
MarketWatch — The Stockpickers Beating with the Street

7.23.07
Reuters — Transocean Merger

7.14.07
Street.com — Growth Stocks

7.01.07
Louis Rukeyser’s Wall Street — Across the Street

6.26.07
Bloomberg TV — Taking Stock

5.16.07
Bloomberg TV — Taking Stock

Click here to view all news items.

 

 

Individual Investors: 1-800-441-7013   Financial Professionals: 1-888-866-4966

Before investing you should carefully consider the Jordan Opportunity Fund's investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by calling 1-888-314-9048 or visiting the Fund's website. Please read the prospectus carefully before you invest.

*Returns greater than one year are annualized. Total return figure 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.

The Fund's investment parameters are diverse and as such may be subject to different forms of investment risk such as non- diversification risk, concentration risk, small- and medium- sized company risk, interest rate risk, high yield bond and foreign securities risk, and lastly, the Fund may use derivatives such as options to increase its exposure to certain securities. Please see the prospectus for a more detailed discussion of the risks that may be associated with the Fund.

Foreside Fund Services, LLC, distributor.

 

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