| Strategy Narrative [Text Block] |
The Fund’s principal investment
strategy is value investing. The Fund invests in common stock of U.S. companies that the Fund’s adviser, Frank Capital Partners
LLC (the “Adviser”), believes are underpriced based on the company’s intrinsic value. The Adviser defines intrinsic
value as the price an intelligent and informed business owner would pay for the enterprise, and is independent from the current selling
price in the stock markets.
The Adviser uses quantitative
analysis to identify undervalued companies, examining such traditional value criteria as:
| · | price-to-earnings, price-to-book value and price-to-cash flow ratios; |
| · | the discounted value of future cash flows; |
| · | acquisition values of similar companies; and |
| · | the value stockholders would receive if the company was liquidated. |
The Adviser then performs
subjective analysis, including the review of trade magazines, annual reports, and regulatory filings. The Adviser considers the future
growth potential of the company, its products and services, its industry position, and the quality of its management before making a final
determination of the company’s intrinsic value.
The Fund invests in common
stocks of companies that have strong financial positions, evidenced by balance sheets without significant debt or other liabilities compared
to cash reserves. The Adviser believes financial markets place undue emphasis on a company’s income, often ignoring the balance
sheet. Therefore, companies with strong balance sheets may have significantly discounted market prices. The Fund may invest in companies
regardless of size, including small- and micro-cap companies. The Adviser sells common stocks when the market price exceeds its estimate
of intrinsic value.
From time to time the Fund
may be invested more heavily in a particular sector if the Adviser determines that companies in that sector present the best value. The
Adviser may invest in “special situation” companies, including spin-offs and companies recently emerging from bankruptcy.
The Fund may hold a significant portion of its assets in cash and cash equivalents if sufficient value opportunities are not present in
the market.
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| Strategy Narrative [Text Block] |
To achieve the Fund’s investment
objective, the Adviser invests in the securities of publicly traded companies involved in mergers, takeovers, tender offers, leveraged
buyouts, spin-offs, liquidations, or similar events (“corporate reorganizations”). A variety of strategies can be employed
to capitalize on the mispricing of corporate securities during corporate reorganizations, including transactions involving common and
preferred stock, debt instruments and derivative securities. In addition, the Fund may invest in a variety of debt instruments, including
U.S. Government securities and structured notes.
| · | Merger Arbitrage. The Fund invests in the securities of companies
subject to publicly announced corporate reorganizations. |
| · | Capital Structure Arbitrage. A variety of strategies can be employed
to capitalize on the mispricing of corporate securities during reorganizations, including transactions involving common and preferred
stock, debt instruments and derivative securities. Many companies issue different types of securities in addition to equity securities,
and sometimes issue different types of equity securities. Capital structure arbitrage involves investing in two different types of securities
issued by the same company if they are believed to be mispriced relative to each other. The securities typically differ in their voting
rights, dividend or interest rates and rights, liquidation preference, liquidity in the financial markets, seniority or other factors.
Typically, one of these securities is purchased, while the other is sold short. The profit or loss realized by the Fund will depend on
the relative price performance of the two securities as well as their relative dividend rates. |
| · | Distressed Securities Investments. The Fund invests in distressed
securities, which are securities of companies that are in or believed to be near bankruptcy or whose securities are otherwise undergoing
extreme financial situations that put the continuation of the issuer as a going concern at risk. Distressed securities include below investment-grade
securities. |
| · | Special Situation Securities. The Fund may also invest in “special
situation” securities when the Fund’s Adviser believes such investments will benefit the Fund. A special situation arises
when, in the Adviser’s opinion, the securities of a company will experience an unusual gain or loss solely by reason of a development
particularly or uniquely applicable to that company. Such situations include, but are not limited to: material litigation, technological
breakthroughs and new management or management policies, spin-offs, break-ups,
or divestitures. Special situation investments may include illiquid or restricted securities, such as private equity investments, and
initial public offerings. |
| · | Activist Investments. The Fund invests in securities of issuers that
in the opinion of the Adviser may become subject to a change of control fight. These are typically proxy fights by minority investors
seeking to have their representatives elected to the board of trustees or directors, often with the intention of replacing existing management,
new capital allocation policies, or selling the company. Profits are expected from the eventual success of the new board of trustees or
directors in increasing the company’s value. The Fund may invest with the intention of participating actively in the change of control,
or staying passive. Although some of the companies the Fund targets as an “activist investment” may be considered potential
candidates for a merger takeover, proxy fights differ from merger arbitrage in that no concrete acquisition may have been proposed yet,
and may not be proposed in the future. |
| · | Short Sales. The Fund may invest up to 50% of its net assets in short
sales on equities at any given time. |
| · | Debt Instruments. The Fund may invest in all types of fixed-income
securities including convertible debt, options, as well as privately negotiated options. The Fund may invest without restriction as to
credit rating, maturity or duration. The Fund may purchase below investment grade securities, commonly referred to as “junk.” |
| · | Tactical Allocation. Because the Fund is a tactical allocation fund,
the assets of the Fund will shift on a short-term basis to take advantage of perceived differences in relative values of the various asset
classes in which the Fund invests. The Fund will tactically allocate capital among a diverse range of trading strategies and markets,
wherever the Adviser perceives opportunity. |
| · | Foreign Securities Investments. The Fund may invest in securities
of foreign issuers, securities traded principally in securities markets outside the United States, U.S. traded securities of foreign issuers
and/or securities denominated in foreign currencies (together, “foreign securities”). The Fund may seek exposure to foreign
securities by investing in Depositary Receipts. |
| · | Derivative Instruments (Including Options and Swaps). The event arbitrage
strategy employed by the Fund may include the use of derivatives. Options and swaps may be used for hedging purposes, as a substitute
for investments in the underlying securities, to increase or decrease exposure (leverage), or for the purpose of generating income. The
Fund may buy call or put options to implement its principal investment strategies. The Fund may write (sell) call options on securities
that it owns. This allows the Fund to generate income on securities that the Adviser believes have a low likelihood of appreciating significantly
until the option expiration. Similarly, options may be written (sold) if the Adviser is willing to purchase the underlying securities
at a lower price. Hedging through derivatives may be done on underlying securities such as individual securities, market indices, as well
as foreign currency or commodity exposure. Options contracts may be used to decrease (hedge) or increase market exposure, exposure to
specific securities or exposure to other factors that may influence an event. |
Some of these strategies involve
the use of arbitrage, which involves taking advantage of small price differences between two otherwise equivalent assets. As compared
with conventional investing, the Adviser considers the Fund’s investment strategies to be less dependent on the overall direction
of stock prices. In managing the Fund, the Adviser may engage in frequent buying and selling, resulting in a high portfolio turnover rate.
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