In terms of asset allocation, where do you think the Schooner Growth and Income Fund fits into a client’s portfolio?
The Fund is an S&P 500 replacement product. At the end of the day, it is a risk managed beta product. We benchmark to the S&P 500 and our first and foremost objective is to beat that benchmark. This is intended as a risk-managed, large-cap beta replacement. Further, you can look at this question from the approach of what the Fund is not. If you break down a typical investor’s portfolio to a 100% allocation, you have equities, fixed income, cash, and alternatives. Then you look a little deeper into these components, starting with alternatives; you have hedge funds and commodities, very open mandate stuff, not us. Then you have fixed income and cash, which are clearly not us. Now looking at the equity space, we are not micro-cap, small-cap, mid-cap, or international. So the answer is that we are a large cap, growth and value, S&P 500-type portfolio. We are not a pure value or growth player. On the value side, our expertise is not tearing through balance sheets and saying that a “stock is
