Morningstar Style Box
High
Mid.
Sm.
Val. Core GR. 

Long/Short Equity Fund
Equity Funds

  • a Shares (SLSAX)
    Inception: 12.13.2013
  • c Shares (SLSCX)
    Inception: 12.13.2013
  • i Shares (SLSIX)
    Inception: 12.13.2013

Fund Overview

Philosophy and Process

To pursue its investment objective, the Fund will invest, under normal circumstances, at least 80% of its net assets plus borrowing for investment purposes in long or short positions in equity securities. While the Fund expects to invest primarily in U.S. equity securities (including common stocks, preferred stocks, warrants, American Depositary Receipts ("ADRs") and debt instruments that are convertible into equity securities), it may also invest in foreign equity securities, and securities of issuers of any capitalization or style.

The Fund seeks to achieve its objective primarily by selecting a group of experienced long/short equity managers who will serve as sub-advisers to the Fund. The portfolio managers believe that long/short equity investing can offer advantages relative to "long only" investing (e.g., lower volatility as defined by the standard deviation of monthly returns, enhanced risk-adjusted returns, and moderate correlation to equity markets) and can be a complementary piece of an investor's overall investment portfolio. Further, the portfolio managers believe that manager diversification offers an important element of risk management when pursuing long/short equity strategies due to the broad dispersion of approaches that long/short equity managers can take in the management of their portfolios.

Investment Considerations

All investments carry a certain amount of risk and the Fund cannot guarantee that it will achieve its investment objective. The portfolio managers' judgments about the capabilities of each Sub-Adviser and the impact of each Sub-Adviser's investment techniques on the Fund's overall investment exposures may prove incorrect, and the Fund may fail to produce the intended results. Unlike most traditional long only equity funds, the Fund will engage in short selling and derivative trading activities as a way of mitigating risk and/or enhancing return. Short sales by a Fund theoretically involves unlimited loss potential since the market price of securities sold short may continuously increase. These strategies may involve significant transaction costs and may amplify risk.

Fund Facts
Class A Shares Class C Shares Inst'l Shares
Ticker SLSAX SLSCX SLSIX
Inception Date 12/13/2013 12/13/2013 12/13/2013
Investment Minimum $1,000.00 $1,000.00 $1,000,000.00
Subsequent Investment Minimum* $0.00 $0.00 $0.00
Max. Up Front Sales Charge 5.75% N/A N/A
Max. Deferred Sales Charge N/A 1.00% N/A

*If subsequent investments are made as part of an AIP, the minimum is $25.

Management



Sub-Advisers to the Sterling Capital Long/Short Equity Fund

Caerus Investors- Long/Short Consumer (New York, NY) Sub-Sector Exposures: Hardline Retail, Softline Retail, General Merchandise, Leisure, Consumer Staples, Housing Related, Internet & Media, Transportation

Emancipation Capital- Long/Short Information Technology (New York, NY) Sub-Sector Exposures: Enterprise Software, IT Services, Software as a Service (SaaS), Semiconductors, Telecom Services

Gator Capital Management- Long/Short Financial Services (Tampa, Florida) Sub-Sector Exposures: Asset Managers, Broker Dealers, Banks, Life Insurance, Property & Casualty Insurance, Exchanges, Payment Processing

Highland Capital Healthcare Advisors- Long/Short Healthcare (Dallas, Texas) Sub-Sector Exposures: Healthcare Services, Biotechnology, Pharmaceuticals, Medical Technology, Life Science & Tools

Lucas Capital Management- Long/Short Energy (Red Bank, New Jersey) Sub-Sector Exposures: Energy Exploration & Production (Oil, Gas), Energy Services, Energy Infrastructure, Mining & Minerals

Performance

Total Returns as of (03/31/2017)
Class A Shares Class C Shares Inst'l Shares
without sales charge with 5.75% sales charge without sales charge with 1.00% sales charge
3 Months -0.57% -6.28% -0.81% -1.80% -0.56%
YTD -0.57% -6.28% -0.81% -1.80% -0.56%
1 Year 13.40% 6.93% 12.58% 12.58% 13.70%
3 Years -4.90% -6.77% -5.59% -5.59% -4.65%
Since Inception -2.22% -3.96% -2.91% -2.91% -1.95%
View more archived data

The total expense ratios for Class A, C and I Shares are 3.28%, 4.03%, and 3.03% respectively. 

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. 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 the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com/funds/performance-summary/.


Performance Summary

Characteristics

Top 10 Holdings (Long)
as of (03/31/2017)
NameValue
ID Systems, Inc.6.12%
Bazaarvoice, Inc.2.11%
Dorchester Minerals L.P.2.04%
Guidance Software, Inc.1.90%
Ambac Financial Group, Inc.1.70%
Vonage Holdings Corp.1.55%
Ooma, Inc.1.52%
Federal National Mortgage Assoc.1.51%
Zions Bancorporation1.47%
Anthem, Inc.1.31%

Current and future portfolio holdings are subject to change and risk.Based on
Market Value of securities.

Top 10 Holdings (Short)
as of (03/31/2017)
NameValue
iShares Russell 2000 ETF-3.09%
SPDR S&R Regional Banking ETF-3.06%
iShares Nasdaq Biotechnology ETF-1.64%
Direxion Daily Financial Bull-1.41%
Zions Bancorporation-1.27%
Consumer Staples Select Sector SPDR Fund-1.11%
Polaris Industries, Inc. -1.05%
SPDR S&P Biotech ETF-1.01%
Exxon Mobil Corp.-1.00%
Harley-Davidson, Inc.-0.91%

Current and future portfolio holdings are subject to change and risk.Based on
Market Value of securities.

Sector Exposure
as of (03/31/2017)
Sector Long Short Net
Information Technology 16.35% -3.33% 13.02%
Energy 14.71% -2.82% 11.89%
Health Care 17.24% -8.39% 8.85%
Financials 17.04% -11.47% 5.57%
Telecommunications 4.40% 0.00% 4.40%
Consumer Staples 4.08% -2.10% 1.97%
Consumer Discretionary 9.56% -8.73% 0.82%
Real Estate 0.86% -0.26% 0.60%
Materials 0.31% 0.00% 0.31%
Industrials 0.40% -0.29% 0.11%
Other 0.00% -3.19% -3.19%

Current and future portfolio holdings are subject to change and risk.

Statistics

Portfolio Positioning
as of (03/31/2017)
Total Positions 256
Long Positions 145
Short Positions 111
Top 10 Holdings (Long) 21.2%
Top 10 Holdings (Short) -15.5%
Portfolio Fund Exposure
as of (03/31/2017)
Equity (% Long) 84.90%
Equity (% Short) -40.60%
Net Expsoure 44.36%
Gross Exposure 125.53%
Adjusted Net Exposure* 53.41%

*Adjusted for Beta and Delta

Portfolio Characteristics
as of (03/31/2017)
Long Short
Total Positions 145 111
Largest Position 6.1% -3.1%
Median Market Cap ($m) 2,600.0 4,800.0
Median Price/Earnings 24.2 23.1
Median Price/Book 3.1 3.2
Median Price/Cash Flow 12.3 14.1
Return on Assets 1.4 3.5
Return on Equity 4.4 10.6
3 Year Sales Growth 3.4 6.5
3 Year EPS Growth 6.1 5.2
Non-US Exposure 3.6 3.4

 


Sterling Capital Funds are:

Not a deposit - Not FDIC insured - Not guaranteed by the bank - Not insured by any government agency - May lose value

An investor should consider a fund's investment objectives, risks, and charges and expenses carefully before investing or sending money. This and other important information about the Sterling Capital Funds can be found in the Funds' prospectus. To obtain a prospectus, please call 1 (888) 228-1872 or click here. Please read the prospectus carefully before investing.

Sterling Capital Management LLC, a separate subsidiary of BB&T Corporation, serves as investment adviser to the Sterling Capital Funds and is paid a fee for its services as described in the prospectus. The Funds are distributed by Sterling Capital Distributors LLC, which is not affiliated with Branch Banking and Trust Company or its affiliates. The Funds are not insured by the FDIC or any other government agency