About Tilson Mutual Funds

The Tilson Focus Fund is managed by Glenn Tongue. Mr. Tongue utilizes a value-oriented investment strategy, seeking to identify companies whose stocks they believe are trading at a substantial discount – preferably 50% - to their intrinsic value. The fund is concentrated in their best investment ideas, hence the name “Focus”. To select equities for the Focus Fund, the managers seek to identify companies they understand well and that possess one or more of the following characteristics:

• Positive (or projected positive) revenue or profit trends;
• Healthy balance sheet, characterized by ample cash relative to debt, efficient working capital management, high or increasing liquidity, or other metrics that the Advisor believes indicate the company’s ability to withstand unexpected shocks, reinvest in the business, and improve its business prospects and circumstances;
• Strong free cash flow generation;
• Powerful and sustainable competitive advantages;
• Management team that: (i) operates the business well and has a sound strategy to build it over time; (ii) allocates capital wisely to enhance shareholder value; and (iii) has high integrity; or
• Policies (e.g., compensation structures) that do not significantly dilute shareholders’ ownership.

The Focus Fund typically invests in common stocks, although it may also invest in other types of equity securities such as preferred stocks, convertible bonds, convertible preferred stocks, options, and warrants. Review the prospectus for further details.

The Tilson Dividend Fund is managed by Zeke Ashton. Mr. Ashton invests in equity securities that he believes are undervalued in the securities markets, but which also offer high dividend yields relative to the yield of the broad market averages such as the S&P 500 Total Return Index.

In addition to investing in stocks that offer high dividend yields, Mr. Ashton expects to generate income from selling covered call options on existing securities. (For a definition of covered call options, click here.) The use of covered call options, in combination with the purchase of equity securities, allows for the inclusion of undervalued, non-paying dividend stocks in the fund’s portfolio while still satisfying the fund’s goal of generating investment income. Securities so purchased will be selected based upon the attractiveness and security of the underlying stock as well as the income potential of the covered call options. The fund may also invest in non-dividend paying stocks without selling covered call options if the portfolio manager believes the stocks can produce significant appreciation.

To select equities for the Dividend Fund, the manager seeks to identify companies he understands well and that possess one or more of the following characteristics:

• Positive (or projected positive) revenue or profit trends;
• Healthy balance sheet, characterized by ample cash relative to debt, efficient working capital management, high or increasing liquidity, or other metrics that the Advisor believes indicate the company’s ability to withstand unexpected shocks, reinvest in the business, and improve its business prospects and circumstances;
• Strong free cash flow generation;
• Powerful and sustainable competitive advantages;
• Management team that: (i) operates the business well and has a sound strategy to build it over time; (ii) allocates capital wisely to enhance shareholder value; and (iii) has high integrity; or
• Policies (e.g., compensation structures) that do not significantly dilute shareholders’ ownership.

The Dividend Fund typically invests in common stocks and other equity securities but may allocate its capital to bonds, short-term money market instruments, or other investment vehicles. Review the prospectus for further details.