CSH Seeks to Deliver Competitive Yields and Equity Upside Opportunity Backed by Cash-Equivalent Collateral

All portfolios need low volatility cash-equivalent investments to provide safety and liquidity

Investors have typically relied on money markets, collateral such as T-bills and other short-term fixed income investments to generate safe returns with low volatility.

Since 2020, money market and collateral such as T-bills yields have been essentially zero, averaging between 0.05% and 0.10%

Requiring a nearly $5million investment to generate enough interest to cover your daily coffee and donuts for a year.

$5,000,000

...but by actively trading certain companies which are required to at all times hold T-bills and other safe assets as collateral, that also contain embedded equity options that can be extremely valuable, CSH seeks to generate meaningful returns while maintaining cash-equivalent collateralization.

CSH only invests in a subset of equity securities called “pre-combination SPAC’s” which are required by regulation to hold only short-term cash-equivalent instruments. CSH seeks to capture and preserve the benefit of “pre-combination SPAC” collateralization through portfolio selection and monitoring by selling or redeeming units and shares which no longer provide cash-equivalent collateralization.

SPAC founders often launch companies in search of the big thing in electric vehicles, power generation, clean energy, space travel, and lots of other ventures, BUT, before they get there, all the investor money is held by bank or other custodians in T-bills or similar safe investments.

typically from 12 months to 2 years

CSH monitors the IPOs and market prices of all SPAC companies which are in-between their IPO and their becoming a company of the future

CSH invests during this planning or acquisition period, when the company is required to hold investor’s money in safe collateral

CSH will sell its shares prior to any business combination, which could be risky, or redeem for its share of the T-bill collateral held in trust. CSH may hold small warrant positions.

typically from 12 months to 2 years

CSH selects issues based in large part on the relationship between their current stock price and the value of the collateral held by their bank or custodian.

CSH then seeks to maximize the value of the embedded equity options to produce additional return.

CSH evalutes each issue relative to its underlying collateral and relative to every other issue, and re-calibrates its portfolio continuously to try to optimize its risk-return.

Documents

  • Prospectus
  • Summary Prospectus
  • Statement of Additional Information
  • Morgan Creek Exos CSH Deck
  • Fact Sheet

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Carefully consider the Fund's investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund's prospectus and summary prospectus, which may be obtained by calling (855) 857-2677. Read the prospectus carefully before investing.

Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Past performance is no guarantee of future results.

FUND RISKS:
The Fund invests in equity securities, warrants and rights of SPACs, which raise funds to seek potential Combination opportunities. Unless and until a Combination is completed, a SPAC generally invests its assets in U.S. government securities, money market securities, and cash. If a Combination that meets the requirements for the SPAC is not completed within a pre-established period of time (e.g., 18-24 months), the invested funds are generally returned to the entity’s shareholders (less any applicable taxes, fees, and administrative expenses); however, in certain cases, the SPAC may extend its period of operations beyond the initial pre-established period of time. If this occurs, a fund investing in the SPAC may have difficulty redeeming its holdings, or may not be able to do so at a desirable time. Because SPACs have no operating history or ongoing business other than seeking Combinations, the value of their securities is particularly dependent on the ability of the entity’s management to identify and complete a profitable Combination. There is no guarantee that the SPACs in which the Fund invests will complete a Combination or that any Combination that is completed will be profitable.

Borrowing magnifies the potential for gain or loss by the Fund and, therefore, increases the possibility of fluctuation in the Fund’s NAV. This is the speculative factor known as leverage. Because the Fund’s investments will fluctuate in value, while the interest on borrowed amounts may be fixed, the Fund’s NAV may tend to increase more as the value of its investments increases, or to decrease more as the value of its investments decreases, during times of borrowing. Unless profits on investments acquired with borrowed funds exceed the costs of borrowing, the use of borrowing will cause the Fund’s investment performance to decrease.

Post-Combination SPAC Warrants. Although the Fund generally will not hold the common stock of a Post-Combination SPAC, the Fund may hold warrants to buy the stock of companies that are derived from a SPAC. Post-Combination SPACs may be unseasoned and lack a trading history, a track record of reporting to investors, and widely available research coverage. Post-Combination SPACs are thus often subject to extreme price volatility and speculative trading. The stocks underlying the warrants may have above average price appreciation that may not continue and the performance of these stocks may not replicate the performance exhibited in the past, which could adversely affect the value of the warrants the Fund holds.

Because the Fund is “non-diversified,” it may invest a greater percentage of its assets in the securities of a single issuer or a lesser number of issuers than if it was a diversified fund. As a result, a decline in the value of an investment in a single issuer or a small number of issuers could cause the Fund’s overall value to decline to a great degree than if the Fund held a more diversified portfolio. The fund is new and has a limited operating history.

Glossary: “Pre-Combination” SPACs are SPACs that are either seeking a target for Combination or have not yet completed a Combination with an identified target.
“Post-Combination” SPACs are operating companies that have completed a Combination with a SPAC within the last three calendar years.

Opinions expressed are subject to change at any time, are not guaranteed and should not be considered investment advice.

Foreside Fund Services, LLC distributor