We strive to provide investors with broad exposure to what we believe are the best opportunities or values in common stocks or bonds. These opportunities or values typically will be found in companies whose enterprise values do not reflect the full intrinsic values of the companies. Unlike many institutions we have no arbitrary rules and are governed only by good sense. We employ great effort to understand a company’s assets and business strengths and measure those against the current valuation of the company.
Our investment decisions are based on fundamental analysis and are generally made more about individual companies than industries or sectors of the economy. Efforts are made to attempt to achieve superior prices on both purchases and sales. We are committed to investing with a long-term horizon for both the potential of preservation and growth of capital. Particular attention is paid to attempt minimizing downside risk on a portfolio basis. Contrarian considerations do influence investment decisions when there is a major discrepancy between the business value of a company and the price of its securities. Some of the characteristics we look for in evaluating companies are:
- Management strength
- Sound business fundamentals
- Inherent strength of superior production or distribution
- Quality franchises
- Reason why the market price is inefficient
We believe our price-driven, value-oriented approach may provide investors with the opportunity for growth, while providing some protection against permanent impairment of capital. We seek to reduce risk by buying stocks that are reasonably priced relative to the company’s earnings and sales, by diversifying broadly, and by avoiding current market trends.
Mutual Funds involve risk, including possible loss of principal. There is no guarantee that any investment strategy will achieve its objectives, generate profits or avoid losses. Value investing involves buying stocks that are out of favor and/or undervalued in comparison to their peers or to their prospects for growth. Typically, their valuation levels are lower than those of growth stocks. Growth-oriented securities purchased by the Fund may involve large price swings and potential for loss.
Investments in small and mid-capitalization companies may be more vulnerable than larger, more established organizations. Investments in foreign securities could subject the Fund to greater risks, including currency fluctuation, economic conditions, and different governmental and accounting standards. In general, the price of a fixed income security falls when interest rates rise. To the extent the Fund invests in high yield securities (junk bonds), it will be subject to greater levels of interest rate, liquidity and credit risks than funds that do not invest in such securities.
When the Fund invests in other investment companies, such as other mutual funds, ETFs or closed-end funds, it indirectly bears its proportionate share of any fees and expenses payable directly by the other investment company. Therefore, the Fund will incur higher expenses, many of which may be duplicative. In addition, the Fund may be affected by losses of the underlying funds and the level of risk arising from the investment practices of the underlying funds. There are risks associated with REITs, including declines from deteriorating economic conditions, changes in the value of the underlying property, and defaults by borrowers.
The U.S. Government’s guarantee of ultimate payment of principal and timely payment of interest on certain U.S. Government securities owned by the Fund does not imply that the Fund’s shares are guaranteed or that the price of the Fund’s shares will not fluctuate. The net asset value and market price of leveraged or inverse ETFs is generally more volatile than the value of the tracked index or of other ETFs that do not use leverage.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Marathon Value Portfolio (the “Fund”). This and other important information about the Fund is contained in the prospectus, which can be obtained by calling 1-800-788-6086 or going to https://marathonvalue.com. The prospectus should be read carefully before investing. The Fund is distributed by Northern Lights Distributors, LLC, Member FINRA/SIPC.