Advisory Research Investment Management


Advisory Research provides access to institutional-caliber investment management with specialized expertise in targeted asset classes. We offer a wide range of strategies across the asset spectrum, paying close attention to downside protection and the pursuit of attractive risk-adjusted returns.

Small Company Opportunities Fund

Investment Overview

The Advisory Research Small Company Opportunities Fund invests in equity securities of small and micro cap companies that we believe are profitable, undervalued on a price to book basis and exhibit low levels of leverage. The Advisory Research investment process focuses on the downside protection and upside potential of individual securities. Downside protection may be discovered through extensive fundamental analysis of companies in order to determine a security’s true net asset value. The team determines upside potential in a particular company through qualitative analysis utilizing senior management interviews, company visits and competitive analysis.

as of 9/30/2017

Fund Facts

Ticker: ADVSX
CUSIP: 46141P545
Inception 11/1/2013
Minimum Investment $2,500
Net Expense Ratio 1.11%
Gross Expense Ratio 3.80%
Portfolio Managers Matt Swaim,
Chris Harvey,
Bruce Zessar,
Jim Langer

Sector Allocation

Top Ten Holdings

Analogic Corp. 4.94%
Masonite International Corp. 4.85%
Adient PLC 4.78%
Navigators Group, Inc. 4.07%
Texas Capital Bancshares, Inc. 3.99%
Jack in the Box, Inc. 3.83%
Casey’s General Stores, Inc. 3.78%
TriMas Corp. 3.70%
Endstar Group, Ltd. 3.60%
Equity Commonwealth 3.51%
Total 41.05%

Holdings are subject to change and risk.

Monthly Fund PerformancePerformance as of October 31, 2017

1 Month Year to Date 1 Year 3 Year 5 Year Since Inception1

Quarterly Fund PerformancePerformance as of September 30, 2017

3 Months Year to Date 1 Year 3 Year 5 Year Since Inception1

1Fund inception date is 11/01/2013.

Performance for periods over one year is annualized. The performance data quoted presents past performance and post performance is not a guarantee of future results. 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 may be lower or higher than the performance information quoted. A redemption fee of 2.00% will be imposed on redemptions of Fund shares owned less than 90 days.

The Fund’s advisor has contractually agreed to waive its fees and/or absorb expenses of the Fund to ensure that total annual fund operating expenses (excluding taxes, leverage interest, brokerage commissions, dividend expenses on short sales, acquired fund fees and expenses as determined in accordance with Form N-1A, expenses incurred in connection with any merger or reorganization, or extraordinary expenses such as litigation) do not exceed the “Net Expense Ratio” listed on the Portfolio tab. This agreement is in effect until March 1, 2017, and it may be terminated before that date only by the Trust’s Board of Trustees. The Fund’s advisor is permitted to seek reimbursement from the Fund, subject to limitations, for fees it waived and Fund expenses it paid for three years from the date of any such waiver or payment.

The Russell 2000® Value Index measures the performance of small-cap value segment of the U.S. equity universe. It includes those Russell 2000® companies with lower price-to-book ratios and lower forecasted growth values.

Principal Risks of Investing

Before you decide whether to invest in the Fund, carefully consider these risk factors and special considerations associated with investing in the Fund, which may cause investors to lose money.

Investment Risks: An investment in the Fund is subject to investment risk, including the possible loss of the entire principal amount that you invest.

Equity Risks: A principal risk of investing in the Fund is equity risk, which is the risk that the value of securities held by the Fund will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities held by the Fund participate, or factors relating to specific companies in which the Fund invests.

Small and Micro Cap Company Risks: The securities of small and micro cap companies may be subject to more abrupt or erratic market movements and may have lower trading volumes or more erratic trading than securities of larger companies or the market averages in general.

Foreign Investment Risks: The Fund’s investments in non-U.S. issuers may involve unique risks compared to investing in securities of U.S. issuers. Adverse political, economic or social developments could undermine the value of the Fund’s investments or prevent the Fund from realizing the full value of its investments.

Currency Risks: Foreign securities that trade in, and receive revenues in, foreign currencies are subject to the risk that those currencies will decline in value relative to the U.S. dollar or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged.

Emerging Markets Risks: The Fund’s investments in foreign issuers in developing or emerging market countries involve exposure to changes in economic and political factors. The economies of most emerging market countries are in the infancy stage of capital market development. As a result, their economic systems are still evolving and their political systems are typically less stable than those in developed economies. Emerging market countries often suffer from currency devaluation and higher rates of inflation.

Management Risks: The Fund is subject to management risk because it is an actively managed portfolio. The Fund’s advisor applies investment techniques and risk analyses in making investment decisions for the Fund, but there can be no guarantee that these will produce the desired results.

Non-Diversification Risks: The Fund is non-diversified, which means the Fund may focus its investments in the securities of a comparatively small number of issuers. Investment in securities of a limited number of issuers exposes the Fund to greater market risk and potential losses than if its assets were diversified among the securities of a greater number of issuers.

Finance Sector Risks: From time to time, the Fund may invest a significant amount of its total assets in the finance sector, which may be subject to specific risks. These risks include governmental regulation of the sector and governmental monetary and fiscal policies which impact interest rates and currencies and affect corporate funding and international trade.

Value Stock Risk: Value stocks involve the risk that the value of the security will not be recognized for an unexpectedly long period of time or that the security is not undervalued but is appropriately priced. The Fund’s focus on value investing may cause the Fund to underperform when growth investing is in favor.

ETF Risks: The risk of ETFs generally reflects the risk of owning shares of the underlying securities held by the ETFs, although the lack of liquidity in an ETF could result in its value being more volatile than the underlying portfolio of securities. The Fund limits its investment in shares of other investment companies including ETFs to the extent allowed by the Investment Company Act of 1940, as amended (the “1940 Act”).


Matthew Swaim



Matt Swaim, with 17 years of investment experience, serves as Managing Director of Advisory Research. Prior to joining the firm, he worked in the assurance and business advisory group at PricewaterhouseCoopers LLP. While pursuing his master’s degree in business, he worked as an equity analyst with a mutual fund company. Matt holds a B.S. in accounting and business administration from the University of Kansas and an M.B.A. from the Kelley School of Business – Indiana University.

Bruce Zessar



Bruce Zessar, with 15 years of investment experience, serves as Managing Director of Advisory Research. Prior to joining the firm, Bruce was a co-founder and principal of Oasis Legal Finance, LLC, a specialty finance company. Bruce is a former partner in the law firm of Sidley Austin, where he practiced financial markets-related law, including securities, antitrust and intellectual property for 12 years. Bruce holds an A.B. magna cum laude in economics from Harvard University and a J.D. with distinction from Stanford Law School.

 Chris Harvey



Chris Harvey, with 17 years investment experience, serves as Managing Director of Advisory Research. Prior to joining the firm, he was the Director of Research and a member of the Investment Committee at Zuckerman Investment Group. Previous to that, Chris was a vice president at Legg Mason Investment Counsel and senior equity analyst at William Harris Investors. Chris holds a B.A. from Clark University and an M.B.A. from the University of Chicago.

Jim Langer



Jim Langer, with 25 years of investment experience, serves as Managing Director of Advisory Research. Prior to joining the firm, he served as an investment analyst at Marquette Capital for five years. Jim’s career in finance began at the Center for Research in Security Prices at the University of Chicago, where he worked on several academic research projects. Jim holds a B.A. in economics from the University of Chicago and an M.B.A. from the Kellogg School of Management – Northwestern University.

Advisory Research Funds are distributed by IMST Distributors, LLC.

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