Olstein Strategic Opportunities Fund seeks long-term capital appreciation
by investing in the undervalued equity securities of small- to mid-cap companies
that face unique strategic choices, challenges, or problems. The Fund may also engage
in shareholder activism as a form of value investing. As a shareholder activist,
The Fund may make significant investments in public companies that it believes are
substantially undervalued, often seeking to influence management to undertake specific
steps to increase shareholder value.
- Seeks long-term capital appreciation by investing in the undervalued equity securities
of small- to mid-size companies that face unique strategic choices, challenges or
problems.
- Valuations based on free cash flow. Reliable valuations require: determining if a company's accounting policies reflect business reality, assessing a company's Quality of Earnings, accounting adjustments to eliminate management bias, and identifying positive or negative factors that may affect future free cash flow.
- Opportunistically pursues an Activist agenda, acquiring a significant position in a company for which Olstein has developed a specific plan for unlocking value; attempts to influence management to adopt changes that may increase shareholder returns.
- Analysis focuses on identifying alternative strategies that may increase shareholder value. Recommended approaches include: altering a company's strategic direction through changes in governance, management skill, capital allocation, asset deployment or sale/breakup of the company or compelling the company to use excess cash to increase dividends, engage in share buybacks, or improve the balance sheet to achieve greater operating leverage.
STEP ONE – IDENTIFY "DEEP VALUE" SITUATIONS
- Qualitative and quantitative screening methodologies yields focs list of ideas
- Intensive forensic analysis of financial statements to evaluate company
performance, nature of its problems, sources of value and prospects
for turnaround - Valuations based on free cash flow. Seek situations that offer adequate
margin of safety – companies selling at a significant discount to intrinsic value
- Legal Structure
- Corporate Governance Structure
- Shareholder Base
- Corporate Strategy
- Senior Management Capabilities
- Identify catalyst – determine what specific changes, triggering events
or set of circumstances will get company back on track or unlock value - Determine strategy and specific recommendations, including activist
and nonactivist tactics, for achieving objectives - Formulate plan to accumulate ownership position in target company
- Accumulate significant ownership position
- Communicate recommendations to company management
- Work with company management and Board to implement plan
- Monitor results of recommended value enhancement measures
| As of December 31, 2011 | ||
| Portfolio Holdings |
36 |
|
| Portfolio Turnover (12-months ended 9/30/2011) | 53.04% | |
| Net Assets |
$19.90 million |
|
| Average Market Cap |
$2.54 billion |
|
| Weighted Average Market Cap |
$2.88 billion |
|
| Market Capitalization Breakdown (% of equity) | ||
|
Large Cap (>$10Bn – $100Bn)
Mid Cap (>$2Bn – $10Bn) Small Cap ($100MM – $2Bn) Micro Cap (<$100MM) |
8.52% 41.97% 46.95% 2.56% |
|
An investment in a portfolio containing small- and mid-cap companies is subject
to additional risks, as the share prices of small- and mid-cap companies are often
more volatile than those of larger companies due to several factors, including limited
trading volumes, products, financial resources, management inexperience and less
publicly available information. Investing in a nondiversified, narrowly focused
fund may entail greater risks than are normally associated with more widely diversified
funds.
|
Class A1 |
Class C |
|
| Management Fees |
1.00% |
1.00% |
| Distribution and Service (12b-1) Fees |
0.25% |
1.00% |
| Other Expenses |
0.81% |
0.81% |
|
Total Annual Fund Operating Expenses2 |
2.06% |
2.81% |
|
Management Fee Waiver/Expense Reimbursement2 |
(0.46)% |
(0.46)% |
| Net Expenses |
1.60% |
2.35% |
1. The Class A expenses in this table do not include any separate advisory fees
that may be charged by financial advisors
2. Olstein has contractually agreed to waive or reduce all or a portion of its management fee and, if necessary, to bear certain other expenses to limit the annualized expenses of the Strategic Opportunities Fund to 1.35% exclusive of 12b-1 and shareholder servicing fees. Olstein may seek reimbursement of its waived fees and expenses borne under certain circumstances. This contractual fee waiver will remain in effect until at least October 28, 2012.
This information should be preceded or accompanied by a current prospectus, which contains more complete information, including investment objectives, risks, and charges and expenses of the Fund, and should be read carefully before investing. A current prospectus may be obtained by calling (800) 799-2113 or clicking here. Do not make investments based on the securities referenced above. Holdings are subject to change. Distributed by Olstein Capital Management, L.P. - Member FINRA. Not FDIC insured / No bank guarantee / May lose value.
2. Olstein has contractually agreed to waive or reduce all or a portion of its management fee and, if necessary, to bear certain other expenses to limit the annualized expenses of the Strategic Opportunities Fund to 1.35% exclusive of 12b-1 and shareholder servicing fees. Olstein may seek reimbursement of its waived fees and expenses borne under certain circumstances. This contractual fee waiver will remain in effect until at least October 28, 2012.
This information should be preceded or accompanied by a current prospectus, which contains more complete information, including investment objectives, risks, and charges and expenses of the Fund, and should be read carefully before investing. A current prospectus may be obtained by calling (800) 799-2113 or clicking here. Do not make investments based on the securities referenced above. Holdings are subject to change. Distributed by Olstein Capital Management, L.P. - Member FINRA. Not FDIC insured / No bank guarantee / May lose value.
| Class A | Class C | |
| Ticker Symbol | OFSAX | OFSCX |
| CUSIP | 681383303 | 681383402 |
| Inception Date | 11/1/2006 | 11/1/2006 |
| NAV (1/31/12) | $11.64 | $11.24 |
|
Minimum Initial Investment |
$1,000 | $1,000 |
|
Maximum Initial Sales Load |
5.50% | None |
| Maximum CDSC | None1 | 1.00%2 |
| Redemption Fees | None | None |
1. Purchases of $1MM or more, or purchases into account(s) with accumulated value
of $1MM or more that were not subject to a front-end sales charge are subject to
a CDSC of 1.00% if sold within one year of purchase.
2. There is no CDSC if you redeem Class C shares more than one year after purchase. The CDSC may be waived under certain circumstances. Please refer to the Prospectus for more information.
2. There is no CDSC if you redeem Class C shares more than one year after purchase. The CDSC may be waived under certain circumstances. Please refer to the Prospectus for more information.
| As of December 31, 2011 | |
| Harman International |
5.21% |
| Ruby Tuesday Inc | 5.07%
|
| Entegris Inc | 4.86% |
| Teleflex Inc | 4.66%
|
| Xerox Corp | 4.44% |
| Top Five Holdings Total | 24.24% |
| As of December 31, 2011 | |
| Capital Goods | 12.70% |
| Technology Hardware & Equipment | 12.53% |
| Semiconductors & Semiconductor Equipment | 11.58% |
| Retailing | 9.33% |
Health Care Equipment & Service |
8.85% |
| Total Top Five Industry Groups | 54.99% |
| As of January 31, 2012 (Average Annual Returns) | ||||||||
| Class C | ||||||||
|
Russell 2500® Index |
S&P 500® Index |
||||||
| One Year |
3.50% |
2.50% |
2.60% |
4.22% | ||||
| Three Years |
28.32% |
28.32% |
24.84% |
19.24% | ||||
| Five Years | 1.05% |
1.05% |
2.01% |
0.33% | ||||
| Avg. Annual Since Inception (11/01/06) |
2.35% |
2.35% |
3.42% |
1.37% | ||||
There is a 1% contingent deferred sales charge (CDSC) imposed if an investor redeems
Class C shares within the first year of purchase.
| As of January 31, 2012 (Average Annual Returns) | ||||||||
| Class A | ||||||||
|
Russell 2500® Index |
S&P 500® Index |
||||||
| One Year |
4.30% |
–1.44% | 2.60% |
4.22% |
||||
| Three Years |
29.26% |
26.87% |
24.84% |
19.24% | ||||
| Five Years | 1.79% |
0.65% | 2.01% |
0.33% |
||||
| Avg. Annual Since Inception (11/01/06) |
3.05% |
1.94% |
3.42% |
1.37% | ||||
Standardized returns reflect deduction of the maximum 5.50% sales charge applicable
to Class A shares. Class A shares purchased subject to a front-end sales charge
have no contingent deferred sales charge (CDSC). However, certain purchases of Class
A shares made without a front-end sales charge may be subject to a CDSC of 1% if
the shares are redeemed within 12 months of the purchase. The CDSC is not reflected
in the performance with maximum sales charge.
Performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's share, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted; to obtain performance data current to the most recent month end please click here.
The Standard & Poors 500 Index is an unmanaged index that includes a representative sample of 500 leading companies in leading industries in the U.S. economy and is considered to represent overall U.S. stock-market performance. The Russell 2500 Index is composed of the smallest 2500 securities in the Russell 3000 Index. The Russell 2500 is constructed to provide a comprehensive and unbiased barometer for the small to mid-cap segment of the U.S. equity universe. Investors cannot actually make investments in either index.
Performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's share, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted; to obtain performance data current to the most recent month end please click here.
The Standard & Poors 500 Index is an unmanaged index that includes a representative sample of 500 leading companies in leading industries in the U.S. economy and is considered to represent overall U.S. stock-market performance. The Russell 2500 Index is composed of the smallest 2500 securities in the Russell 3000 Index. The Russell 2500 is constructed to provide a comprehensive and unbiased barometer for the small to mid-cap segment of the U.S. equity universe. Investors cannot actually make investments in either index.
Eric R. Heyman, Co-Portfolio Manager
- Serves as Co-Portfolio Manager of Olstein All Cap Value Fund
- Joined Olstein in 1996, within months of the firm's founding
- With Robert Olstein, developed firm’s investment approach to activist situations
- BBA, Accounting, Pace University
Robert A. Olstein, Lead Portfolio Manager
- Founded Olstein Capital Management in 1995
- Engaged in various aspects of equity research and portfolio management since 1968
- Cofounded Quality of Earnings Report in 1971, which pioneered inferential screening of financial statements to identify early warning alerts of potential changes in a company’s future earnings power
- Senior member of New York Society of Securities Analysts
- Graham & Dodd Scroll Award, Financial Analysts Federation (now CFA Institute)
- BA in Mathematical Statistics, Michigan State University
- MBA in Accounting, Michigan State University
| Robert A. Olstein | 43 |
| Eric R. Heyman | 15 |
| Timothy S. Kang | 16 |
| Joan K. Tong | 16 |
| John D. Sullivan, Jr. | 7 |
| Richard J. Vitale | 18 |
| Clark B. Thompson | 22 |