|The Issachar Fund (LIONX) remains Fully Invested and Leveraged in low volatility type mutual funds and ETFs as of 2/16/2017. LIONX holds some Preferred, Strategic Income and Floating Rate mutual funds and a few High Yield and Preferred ETFs. On a risk-adjusted basis, I still believe Junks and Preferreds have been a good place to be and I plan to stay with these positions until I perceive that the trend has ended or I find what I think is a better opportunity. By prospectus, LIONX can invest in stocks, bonds, ETFs, mutual funds, commodities, options and futures. However, I like to find mutual funds and ETFs that are trending higher without a lot of day-to-day price volatility then I use leverage (total return swaps) to buy more of these same positions with the hopes of getting more return with an incremental amount of risk. If however, the risk (daily draw-down or loss) exceeds more than 1% then I try to hedge the portfolio or sell positions to hopefully reduce the risk of loss going into the next day. I cannot control the return so I try to focus on managing the risk (amount of loss) in the LIONX portfolio and I simply let the market determine the return we receive in LIONX. Since the launch of LIONX on 2/28/14, the maximum draw-down (loss) for LIONX shareholders has been 5.68% while the S&P 500 Index (MDD) has been 13.07%. I have all of my personal investable assets in LIONX so I have a protection incentive and no one cares more about my money than I do. God has graciously blessed me with financial resources far exceeding my dreams so my job is to be a good steward of what he has entrusted to me. If you want me to manage your money exactly like I manage my own money then invest in LIONX and we will pay the same fees and get the same returns. (Portfolio holdings are subject to change at any time and should not be considered investment advice.)
The market is near an all-time-high and it has continued to inch higher without a lot of down-side volatility. As prices are rising, it appears that the “big money” institutions may be joining the party because the volume is also rising with prices. Apparently the market likes the President Trump agenda of decreased regulation, lower taxes and bringing jobs back to America. The Philadelphia Fed February 2017 Manufacturing Business Outlook Index jumped to its strongest reading since 1994! Retail sales in January increased 0.4% which was much stronger than predicted. The PPI came in twice as high as estimated and the CPI increased 0.6% in January which was also higher than estimated. All this increased economic activity has increased the probability of a Fed rate hike for March to 44% while the May rate hike expectations increased to 63%! It certainly seems that the 35 year bull market in Bonds that started in 1981 has now ended on 7/8/16 with a yield on the 10 year Treasury at 1.37%. However, I expect high yield bonds and floating rate bonds to continue to trend higher as they continue to beat to a different drummer.
President Trump wants to be the most successful President America has ever seen and I believe that he is on the right track. However, it seems that the far-left propaganda media are trying their best to undermine his efforts by distorting the facts but I believe that more and more people will begin to see and believe the truth. I expect to see more long press conferences from President Trump so that the media will be forced to air the truth and as Jesus said, “the truth will set you free”.
The Issachar Fund (LIONX) is a No-Load Mutual Fund that can be purchased at several major retail brokerages on their No-Transaction-Fee (NTF) platforms. Horizon Capital Management, Inc. (HCM) is the Fund Advisor, and I am the “independent” sole-owner of HCM, where I make all investment decisions to hopefully benefit the shareholders invested in LIONX. LIONX is now available for purchase in all states. (No-Load mutual funds are sold without a sales charge; however other fees and expenses do apply to an investment in the Fund.)
Dexter P. Lyons
Disciplined, Focused, Alternative, Unconstrained, Independent, No-Mandate Manager, Actively Managing Market Risk Since 1990!
Thanks for your time and I wish you a Profitable and Blessed Day!
Horizon Capital Management Inc., is not affiliated with Northern Lights Distributors, LLC.
Mutual Funds involve risks including the possible loss of principal.
The Fund may engage in frequent trading, leading to increased portfolio turnover, higher transaction costs, and the possibility of increased net capital gains, including net short-term capital gains that will be taxable to shareholders as ordinary income when distributed. The Fund may hold cash positions and there is a risk that the sections of the market in which the Fund invests will begin to rise or fall rapidly and the Fund will not be able to sell stocks quickly enough to avoid losses, or reinvest its cash positions into areas of the advancing market quickly enough to capture the initial returns of changing market conditions. The Fund’s investments in large capitalization stocks may underperform Funds that invest primarily in the stocks of lower quality, smaller capitalization companies during periods when the stocks of such companies are in favor. Investments in small-capitalization and mid-capitalization companies involve greater risks and volatility than investing in larger capitalization companies. Small and medium-size companies often have narrower markets for their goods and/or services and more limited managerial and financial resources than larger, more established companies. The Fund is non-diversified, which means it invests a high percentage of its assets in a limited number of securities. A non-diversified fund’s NAVs and total returns may fluctuate more or fall greater in times of weaker markets than a diversified mutual fund.
The Fund invests in debt instruments which have varying levels of sensitivity to changes in interest rates, credit risk and other factors. Many debt instruments are subject to prepayment risk, which is the risk that the issuer of the security will repay principal prior to the maturity date. The Fund could lose money if the issuer or guarantor of a debt security goes bankrupt or is unable or unwilling to make interest payments and/or repay principal. Changes in an issuer’s financial strength or credit rating also may affect a security’s value and have an impact on Fund performance. The value of the Fund’s investment in fixed income securities will fall when interest rates rise and the effect of increased interest rates is more pronounced for intermediate-term or longer-term fixed income obligations owned by the Fund. The Fund will invest a significant portion of its assets in securities that are rated below investment grade or “junk bonds.” Junk bonds may be sensitive to economic changes, political changes, or adverse developments specific to a company. These securities generally involve greater risk of default or price changes than other types of fixed-income securities and the Fund’s performance may vary significantly as a result. The floating rate loans in which the Fund invests are usually rated below investment grade and are generally considered speculative because they present a greater risk of loss, including default, than higher quality debt securities and may be less liquid than higher rated debt securities.
The value of the Fund’s asset-backed securities may be affected by changes in interest rates, the availability of information concerning the interests in and structure of the pools of purchase contracts, financing leases or sales agreements that are represented by these securities, the credit worthiness of the servicing agent for the pool, the originator of the loans or receivables, or the entities that provide any supporting letters of credit, surety bonds, or other credit enhancements. The Fund’s investment in municipal securities carries additional risk including changes in federal, state or local laws that may make a municipal issuer unable to make interest payments when due. Municipal securities backed by current or anticipated revenues from a specific project or specific assets can be negatively affected by the inability to collect revenue, for the project or from the assets. Moreover, an adverse interpretation of the tax status of municipal securities may make such securities decline in value. In addition to the risks typically associated with fixed income securities, loan participations carry other risks, including the risk of insolvency of the lending bank or other intermediary. Loan participations may be unsecured or not fully collateralized, may be subject to restrictions on resale and sometimes trade infrequently on the secondary market.
The Fund uses investment techniques, including investments in futures contracts, forward contracts, options and swaps, which may be considered to be an aggressive investment technique. Investments in such derivatives may general be subject to market risks that may cause their prices to fluctuate over time and may increase the volatility of the Fund. The use of derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives, such as counter party risk and the risk that the derivatives may become illiquid. The use of derivatives may result in larger losses or smaller gains than investing in the underlying securities directly. Interest rate swaps are subject to interest rate and credit risk. Total return swaps are subject to counter party risk, which relate to credit risk of the counter party and liquidity risk of the swaps themselves. There may be an imperfect correlation between the prices of options, futures, and/or forward contract and movements in the price of the securities (or indices) hedged or used for cover which may cause a given hedge not to achieve its objective. There may not be a liquid secondary market for futures contracts and Forward currency transactions include the risks associated with fluctuations in currency. If the Fund uses a hedging instrument at the wrong time or judges the market conditions incorrectly, the hedge might be unsuccessful, reduce the Fund’s investment return, or create a loss. Use of leverage can magnify the effects of changes in the value of the Fund and makes them more volatile and increases the risk for loss in adverse environments. Short positions are designed to profit from a decline in the price of particular securities, baskets of securities or indices. The Fund will lose value if the instrument’s price rises – a result that is the opposite from traditional mutual funds.
Investments in foreign securities and securities that provide exposure to foreign securities involve greater risks than investing in domestic securities. As a result, the Fund’s returns and NAVs may be affected to a large degree by fluctuations in currency exchange rates, political, diplomatic or economic conditions and regulatory requirements in other countries. The Fund also may invest in depositary receipts, including ADRs, which are traded on exchanges and provide an alternative to investing directly in foreign securities. Investments in ADRs are subject to many of the risks associated with investing directly in foreign securities. The laws and accounting, auditing, and financial reporting standards in foreign countries typically are not as strict as they are in the U.S., and there may be less public information available about foreign companies. Investments in emerging markets instruments involve greater risks than investing in foreign instruments in general. Risks of investing in emerging market countries include political or social upheaval, nationalization of businesses, restrictions on foreign ownership and prohibitions on the repatriation of assets and risks from an economy’s dependence on revenues from particular commodities or industries among others.
The indices shown are for informational purposes only and are not reflective of any investment. As it is not possible to invest in the indices, the data shown does not reflect or compare features of an actual investment, such as its objectives, costs and expenses, liquidity, safety, guarantees or insurance, fluctuation of principal or return, or tax features. Past performance is no guarantee of future results.
NLD Review Code: 6292-NLD-2/17/2017
Dexter P. Lyons
106 Valerie Drive
Lafayette, LA 70508
Dexter@LIONX.net . www.LIONX.net . 337-983-0676