BTR Global Energy Fund Strategy
To achieve its objectives, the BTR Global Energy Fund may use the following investment strategies:
• Making long investments in securities that are believed to be undervalued, typically in, but not limited to, companies with improving fundamentals, strong balance sheets, superior earnings growth potential and solid business models.
• Short selling of securities which are believed to be overvalued, especially those with deteriorating fundamentals, weak balance sheets, and other factors which merit a determination of overvaluation.
To a lesser extent, the following strategies may also be used on an opportunistic basis in order to enhance the BTR Global Energy Fund’s returns:
• Executing upon arbitrage strategies where the BTR Global Energy Fund can capture the price spread between: (i) the current market price of a subject security and the value of the subject security upon completion of a take-over or merger that has been announced (merger arbitrage); and (ii) the price of the convertible securities and the value of the underlying securities to lock in a conversion profit or to conserve and protect the coupon on such securities (convertible arbitrage).
• Identifying restructuring or spin-off opportunities in companies that may be involved in multiple lines of business. Spinning off divisions may provide arbitrage or net pricing opportunities.
• Participating in select private placements of companies that have compelling growth characteristics (as outlined above) and offer potential for significant price appreciation upon completion of a liquidity event.
• Making long investments in securities that are believed to be undervalued, typically in, but not limited to, companies with improving fundamentals, strong balance sheets, superior earnings growth potential and solid business models.
• Short selling of securities which are believed to be overvalued, especially those with deteriorating fundamentals, weak balance sheets, and other factors which merit a determination of overvaluation.
To a lesser extent, the following strategies may also be used on an opportunistic basis in order to enhance the BTR Global Energy Fund’s returns:
• Executing upon arbitrage strategies where the BTR Global Energy Fund can capture the price spread between: (i) the current market price of a subject security and the value of the subject security upon completion of a take-over or merger that has been announced (merger arbitrage); and (ii) the price of the convertible securities and the value of the underlying securities to lock in a conversion profit or to conserve and protect the coupon on such securities (convertible arbitrage).
• Identifying restructuring or spin-off opportunities in companies that may be involved in multiple lines of business. Spinning off divisions may provide arbitrage or net pricing opportunities.
• Participating in select private placements of companies that have compelling growth characteristics (as outlined above) and offer potential for significant price appreciation upon completion of a liquidity event.