About Us
Invenomic employs a disciplined, fundamentally-driven research process to build a diversified portfolio of primarily U.S. focused long and short equity investments that we believe will provide competitive performance in most market environments.
Invenomic leverages what we believe are the best features of quantitative analysis on the front end of our process to source ideas and then applies traditional fundamental analysis in an attempt to create a portfolio of compelling long and short ideas. Portfolio manager Ali Motamed has been consistently employing this strategy throughout his career.
INVEST
[verb, in-vest]
NOMIC
[adjective, nom'ik]
To endow something with a particular quality.
To expend money with the intention of achieving a profit.
Having the general force of natural law.
Investment Philosophy
Invenomic believes in the value of hard work and fact-based investing.
SIMPLICITY
SIMPLICITY
Focus on US market allows us to mitigate both valuation disparities among various regional markets and the impact of non-core variables, (e.g., currency and the regulatory environment).
We are financial analysts and as such we emphasize our ability to project the evolution of financial statements and predict the markets’ reaction to them.
Focus on US market allows us to mitigate both valuation disparities among various regional markets and the impact of non-core variables, (e.g., currency and the regulatory environment).
We are financial analysts and as such we emphasize our ability to project the evolution of financial statements and predict the markets’ reaction to them.
FOCUS ON FACTS
FOCUS ON FACTS
Financial statements, earnings transcripts, and company filings are by far the most reliable sources of information; management meetings are used primarily to understand capital deployment.
Rather than reliance on outsider analysis, we work to develop independent views of industry trends derived from actual company reports and research.
Financial statements, earnings transcripts, and company filings are by far the most reliable sources of information; management meetings are used primarily to understand capital deployment.
Rather than reliance on outsider analysis, we work to develop independent views of industry trends derived from actual company reports and research.
PORTFOLIO COMPOSITION IS KEY
PORTFOLIO COMPOSITION IS KEY
We believe diversification is a paramount risk management tool and allows access to the entire spectrum of market opportunities.
We aim to only short stocks in pursuit of positive absolute returns. Hedging is a byproduct of a disciplined and well executed strategy; our shorts, by nature, position the portfolio to participate in rallies and manage downside risk.
We believe diversification is a paramount risk management tool and allows access to the entire spectrum of market opportunities.
We aim to only short stocks in pursuit of positive absolute returns. Hedging is a byproduct of a disciplined and well executed strategy; our shorts, by nature, position the portfolio to participate in rallies and manage downside risk.
STRIVE FOR EXCELLENCE
STRIVE FOR EXCELLENCE
We are human capital. We evaluate ourselves and our every action with the same vigor that we evaluate the companies in which we invest.
Our goal is to drive productivity and retain/build on information and process efficiently.
We are human capital. We evaluate ourselves and our every action with the same vigor that we evaluate the companies in which we invest.
Our goal is to drive productivity and retain/build on information and process efficiently.
Portfolio Construction
Investing in Fundamentally Sound Companies - at good valuations, with improving metrics, can potentially drive outsized returns.
Disciplined Short Selling - can potentially add to returns and systematically position a portfolio to weather an array of market environments.
Diversification - is an essential risk management tool.
The long portfolio will generally be +90% invested during most market environments.
The short portfolio will fluctuate based on the number of stocks we find that we deem to have negative prospective returns over the foreseeable future.
Managing Market Exposure
OVERVALUED MARKET
UNDERVALUED MARKET
SIZE OF SHORT PORTFOLIO
Fluctuates based on the number of stocks that we deem to have negative prospective returns
The Invenomic Fund
Month-end performance through November 30, 2024
Quarter-end performance through September 30, 2024
*Fund Inception: June 19, 2017. 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 shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. To obtain performance data current to the most recent month-end, please call 1-855-466-3406. Returns over one year are annualized and include the reinvestment of dividends and income. The fund imposes a 1.00% redemption fee on shares sold within 60 days.
Resources
2024 Mutual Fund Year-End Expected Distribution Dates
Composition & Holdings as of November 30, 2024
Portfolio Exposures (% of Equity)
Portfolio Composition
Sector Allocation (% of Equity)
Investors should carefully consider the investment objectives, risks, charges, and expenses of the Invenomic Fund. This and other important information about the Invenomic Fund is contained in the prospectus, which can be obtained at www.invenomic.com or by calling 1-855-466-3406. The prospectus should be read carefully before investing. The Invenomic Fund is distributed by Northern Lights Distributors, LLC, member FINRA/SIPC.
Important Risk Information
Mutual fund investing involves risk. Principal loss is possible. The Fund may use derivatives, including options, which may not perform as anticipated by the Adviser, may not be able to be closed out at a favorable time or price, or may increase the Fund’s volatility. A counterparty’s inability to fulfill its obligation may result in financial loss to the Fund. Increases and decreases in the value of the Fund’s portfolio may be magnified when the Fund uses leverage. The fund may make short sales of securities, which involves the risk that losses may exceed the original amount invested. Investments in debt securities typically decrease when interest rates rise. This risk is usually greater for longer‐term debt securities. Investments in lower rated and non‐rated securities present a greater risk of loss to principal and interest than higher‐rated securities. Investing in foreign securities exposes investors to economic, political and market risks, and fluctuations in foreign currencies. The fund may invest in the securities of small and medium sized companies. Small and medium company investing subjects investors to additional risks, including security price volatility and less liquidity than investing in larger companies. Current and future portfolio holdings are subject to risk and change.
Fund expenses listed are as of 3/1/2024. Total Other Expenses includes 0.02% in recouped management fees in accordance with the operating expense limitation agreement. between Invenomic Capital Management LP (the “Adviser”) and the Fund. Pursuant to the agreement, the Adviser has agreed to waive its fees and/or absorb expenses of the Fund to ensure that Total Annual Fund Operating Expenses (excluding any front-end or contingent deferred sales loads, brokerage fees and commissions, acquired fund fees and expenses, borrowing costs (such as interest and dividend expense on securities sold short), taxes and extraordinary or non-recurring expenses, including, but not limited to, litigation) for the Fund do not exceed 2.23%, 2.48% and 1.98% of the Fund’s average net assets, for Institutional Class, Investor Class shares and Super Institutional Class, respectively, through February 28, 2025. The Adviser is permitted to receive reimbursement from the Fund for fees it waived and Fund expenses it paid, subject to the limitation that: (1) the reimbursement for fees and expenses will be made only if payable within three years from the date the fees and expenses were initially waived or reimbursed; and (2) the reimbursement may not be made if it would cause the expense limitation in effect at the time of the waiver or currently in effect, whichever is lower, to be exceeded. This operating expense limitation agreement can be terminated only by, or with the consent of, the Board of Trustees.
The indices shown are for informational purposes only, are not reflective of any investment, nor are they professionally managed. 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. There is no guarantee that any investment strategy will achieve its objectives, generate profits, or avoid losses.
The S&P 1500 combines three leading indices, the S&P 500, the S&P MidCap 400, and the S&P SmallCap 600, to cover approximately 90% of U.S. market capitalization. The Morningstar Long-Short Equity Category is an average monthly return of all funds in the Morningstar Long-Short Equity Category, including the Fund. The category contains a universe of funds with similar investment objectives and investment style, as defined by Morningstar. Performance of the indices and Morningstar Category Average is generated on the 1st business day of the month.
References to other mutual funds or products should not be interpreted as an offer to buy these securities. Fund holdings are subject to change and should not be considered a recommendation to buy or sell any security.
Diversification does not assure a profit or protect against loss in a declining market.
The Fund is offered only to United States residents, and information on this site is intended only for such persons. Nothing on this web site should be considered a solicitation to buy or an offer to sell shares of the Invenomic Fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction. 20241205-4073036