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 Jerry Jordan Commentary:
fourth Quarter Investment Outlook 2009
The equity markets continued to surge globally in the third quarter and, unlike the second quarter, experienced little volatility. The S&P 500 Index rose during nine weeks of the quarter, and the down weeks witnessed only shallow declines as investors broadly reacted to the realization that the recession appears to have ended. The global markets also advanced nicely, but, interestingly, the Asian markets began to underperform as more developed markets, such as the United Kingdom and Germany, produced stellar returns. The beginning of the global exodus from defensive cash positions appears to be well under way.
We were pleased with our portfolio results during the stock market advance, benefiting from sharp recoveries in energy, industrial, financial, and technology sectors. As the stock market ended the quarter in a significant overbought condition, we have reduced exposure in some of our extended holdings in anticipation of opportunistic entry points later in the fourth quarter. Our intermediate outlook for equities remains positive as economic momentum improves and monetary conditions remain highly stimulative. But we expect the rate of advance to moderate meaningfully as valuations in many markets have approached neutral levels.
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On September 15 Federal Reverse Chairman Ben Bernanke declared that the recession was likely over, as the effects of enormous monetary and fiscal intervention worldwide have created a very visible impact on the credit and capital markets. With the help of central bank guarantees and cash infusions, banks and financial institutions have been able to raise record amounts of capital and have returned to a position where they can again lend money to help grow the economy... more›› |
"What is significant about widespread global economic improvement is that it is occurring in the wake of one the most violent and abrupt declines in industrial production in economic history." |
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A Conversation with Jerry Jordan
The Jerry Jordan interview, conducted in early October 2009, 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: It’s been a year since the meltdown. Do you think we will ever learn to avoid these surprises?
Jerry Jordan: The answer is no, never, because I believe that what makes markets work is fear and greed. You can't take away fear and you can’t take away greed. Therefore, I think we could always transition from one bubble to the next, from one overdone sector to the next overdone sector. That’s the beauty of capitalism, and the problem with capitalism. more›› |
Mutual Fund Performance as of September 30, 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. As stated in the current prospectus, the fund's annual operating expense ratio (gross) is 1.40%. Effective January 1, 2007, through March 31, 2008, the Fund's advisor voluntarily waived its fees to 0.50% of the average daily net assets of the Fund; otherwise, performance shown would have been lower. The quarter end expense ratio for June 30, 2009, was 1.62%. 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 9/30/09 OUT OF 1,515 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.
April 2009
Louis Rukeyser's Wall Street – The Trendy Bull |
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