TF Core Growth Fund | Investment Process

The Taylor Frigon Core Growth Fund (the “Fund”), under normal market conditions, invests primarily in common stocks of companies of all sizes, including small and micro-capitalization companies that Taylor Frigon Capital Management LLC (the “Advisor”), the Fund’s investment advisor, believes have excellent growth prospects. The Fund generally holds 30-50 companies and may invest in foreign securities, including American Depositary Receipts (ADRs). The Advisor applies a proprietary selection process called the TFCM Core Growth Strategy when selecting investments for the Fund.

 

In applying its TFCM Core Growth Strategy, the Advisor identifies growth companies using a rigorous analytical approach that employs both qualitative and quantitative research techniques. Growth companies are those that the Advisor believes will have revenue and earnings that grow faster than the economy as a whole and offering above-average prospects for capital appreciation and little or no emphasis on dividend income. The Advisor considers a company to be a growth company if it has the following characteristics:

 

  • Proven, capable management in growth industries;

  • Innovation that solves problems, creates new markets, and improves the world;

  • Financially strong businesses at the leading edge of global economic trends. Companies with demonstrated growth in earnings and sales, high returns on equity and assets, among other strong financial indicators; and

  • Promising revenue and earnings growth that are not yet well recognized or fully valued, i.e., companies the Advisor believes are financially strong and are selling at attractive prices in relation to their values.

 

The Advisor’s investment selection process includes a review of global economic trends, themes and paradigm shifts in combination with the Adviser’s proprietary quantitative metrics analysis. A key part of the investment process is identifying where innovations in business create paradigm shifts that can result in the opening of new markets in which well-run, financially strong companies can benefit. Companies that meet the Advisor’s macro and quantitative criteria are then analyzed with rigorous qualitative research to determine a company’s prospects in light of market position, potential for leadership and possible disruptive aspects of their products and/or services. The ultimate decision to purchase a company is based on the Advisor’s assessment of potential returns that a company can produce.

 

The Fund may invest a large percentage of its assets in a few sectors, including but not limited to information technology, industrials, health care, consumer discretionary, and financials.

 

The Advisor may sell or reduce the Fund's position in a security (1) when it approaches and/or exceeds the Advisor's estimate of its intrinsic value, (2) when its macro-economic factors or quantitative characteristics have changed, or (3) when the facts or the analysis surrounding the reason to originally put the security in the Fund's portfolio have changed.

                     

                      Taylor Frigon Core Growth Fund

                        Inspired by Taylor Frigon Capital Management, LLC 

 

Investors should consider the investment objectives, risks, and charges and expenses of the Fund carefully before investing. The prospectus contains this and other information about the Fund. You may obtain a prospectus on this website or by calling the transfer agent at (888) 897-4821. The prospectus should be read carefully before investing.

Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

An investment in the Fund is subject to investment risks, including the possible loss of the principal amount invested. There can be no assurance that the Fund will be successful in meeting its objectives. The Fund invests in common stocks which subjects investors to market risk. The Fund is subject to growth investing risk.  Growth stocks are generally more volatile than value stocks and the earnings growth of these companies may not occur or be sustained.  The Fund invests in small and mid-cap companies, which involve additional risks such as limited liquidity and greater volatility.

Fund holdings are subject to change and are not recommendations to buy or sell any security.  Current and future holdings are subject to risk.

Distributed by Rafferty Capital Markets, LLC ­ Garden City, NY 11530.