While Black Cypress attempts to preserve capital, clients should understand that all investments pose a risk of loss. Clients should therefore be prepared to bear losses that coincide with fluctuations that come with investing in securities markets. Investors can lose money and can underperform other investment strategies.

Principal risks associated with our Long-Only Composite strategy and/or investing in general, include:

General Market Risk. The market value of a security may move up or down, sometimes rapidly and unpredictably. These fluctuations may cause a security to be worth less than the price originally paid for it, or less than it was worth at an earlier time. Market risk may affect a single issuer, industry, sector of the economy or the market as a whole.

Equity Securities Risk. Equity (common stock) securities are subject to greater fluctuations in market value than other asset classes as a result of such factors as a company’s business performance, investor perceptions, stock market trends, and general economic conditions. Equity investments risk a loss of all or a substantial portion of the investment.

Manager Risk. Black Cypress’s opinion about the intrinsic worth of a company or security may be incorrect or the market may continue to undervalue the company or security. Black Cypress may not make timely purchases or sales of securities.

Interest Rate Risk. Debt security prices may decline due to rising interest rates. The price of debt securities with longer maturities is typically affected more by rising interest rates than the price of obligations with shorter maturities.

Credit Risk. An issuer or guarantor of a debt security may be unable or unwilling to make scheduled payments of interest and principal. Actual or perceived deterioration in an issuer’s or guarantor’s financial condition may affect a security’s value. Changes in credit spreads across markets can impact an investment in fixed income securities.

Database Error Risk: The investment strategies used by Black Cypress relies on proprietary databases and third-party data sources. Data entries made by Black Cypress’s team may contain errors, as may the database system used to store such data. Any errors in the underlying data sources, data entry, or database my result in investment decisions based on incorrect information.

Systems Risk. Black Cypress relies on computer programs and systems to implement its strategies, to trade, to monitor portfolios, and generate reports that are critical to Black Cypress’s activities. The programs or systems may be subject to certain defects, failures, or interruptions.

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