1. "There’s a Bull in every market…
"There’s a Bull in every market…
our job is to find it.”
our job is to find it.”
- Robert A. Isbitts, Chief Investment Officer
- Robert A. Isbitts, Chief Investment Officer
EAS Genesis Fund January 31, 2010
Description
The EAS Genesis Fund (the "Fund") is a flexible allocation mutual fund with active hedging capability. The Fund is a multi-manager,
multi-strategy portfolio that offers a practical alternative solution to the traditional, long-only "style box" approach to asset allocation.
STRATEGY: Flexible, low-correlation approach that invests across a broad spectrum of investment themes, styles and disciplines via
mutual funds, ETFs and options.
APPROACH: Allocates among three distinct sub-strategies (conservative; moderate; and aggressive). Includes a Tactical overlay that
attempts to hedge the portfolio and reduce volatility, or when possible, generate additional alpha by capitalizing on shorter-term
opportunities.
GOAL: Generate positive absolute returns over any 3-year rolling period; capture at least 60% of the market's upside and no more than
40% of the downside over extended rolling periods.
Risk Return against S&P 500 TR Growth of $1,000
August 2008 through January 2010 August 2008 through January 2010
0%
$1,200
$1,000
-5%
Annualized Return
$800
$600
-10% $400
$200
-15% $0
5% 10% 15% 20% 25% 30%
Annualized Standard Deviation EAS Genesis Fund S&P 500 TR
EAS Genesis Fund S&P 500 TR
Monthly Performance (%) Net of Fees
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2010 (1.75%) (1.75%)
2009 (1.62%) (2.11%) 2.64% 2.10% 4.58% (0.98%) 2.98% 0.32% 1.93% (0.42%) 1.69% 0.41% 11.89%
2008 0.00% (2.90%) (5.46%) (5.56%) 0.56% (12.82%)
Performance Summary As of 01/31/2010 As of 12/31/2009
*Statistics are annualized Year-to- *Since Standard Year-to- *Since Standard
One Year Beta One Year Beta
Date Inception Deviation Date Inception Deviation
EAS Genesis Fund (1.75%) 11.74% (2.86%) 9.51% 0.33 11.89% 11.89% (1.78%) 9.70% 0.33
S&P 500 TR (3.60%) 33.14% (9.72%) 25.72% 1.00 26.46% 26.46% (7.87%) 26.36% 1.00
*Fund inception is August 14, 2008. Returns are for the Institutional Share Class (EASIX) only, other share classes will vary.
Standard deviation is a statistical measure of portfolio risk which measures the variability of returns around an average, over a specified period of time. The
greater the standard deviation, the greater the Fund's volatility. Beta is a measure of the volatility, or systemic risk of a security or a portfolio in comparison to
the market as a whole.
The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above, which
cannot guarantee future results. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their
original cost. As stated in the current prospectus, the Fund's total annual operating expense ratio (gross) is 3.31% for the class A shares, 4.06% for the class C
shares and 3.06% for the class I shares. The Fund's investment adviser has contractually agreed to reduce its fees and/or absorb expenses of the Fund, at least
until August 31, 2010, to ensure that the net annual fund operating expenses (exclusive of any front-end or contingent deferred loads, taxes, leverage interest,
brokerage commissions, expenses incurred in connection with any merger or reorganization, dividend expense on securities sold short, expenses of investing in
Underlying Funds, or extraordinary expenses such as litigation) will not exceed 1.95% for class A shares, 2.70% for class C shares, and 1.70% for class I
shares subject to possible recoupment from the Fund in future years. Please review the Fund's prospectus for more detail on the expense waiver. Results shown
reflect the waiver, without which the results could have been lower. Maximum sales charge on class A shares is 5.50%. A Fund's performance, especially for
very short periods of time, should not be the sole factor in making your investment decisions. For performance current to the most recent month-end, please
call 877-EAS-0757 or visit www.EASfunds.com. Please see reverse side for additional performance disclosure.
EMERALD ASSET ADVISORS, LLC | 2843 Executive Park Drive | Weston, Florida 33331 | T: 954.385.9624 | TF: 1.877.EAS.0757 0807-NLD-2/9/2010
info@EmeraldEAS.com | www.EASfunds.com

2. HEDGED INVESTING…in a flexible allocation mutual fund
HEDGED INVESTING…in a flexible allocation mutual fund
EAS Genesis Fund January 31, 2010
Asset Allocation Detail Current Asset Allocation
Sub-Strategies & Descriptions Weightings
HYBRID (Conservative) Hybrid
Cash
Conservative strategy using hedged mutual funds that employ the 36%
14%
following alternative styles: Long/Short Equity; Market Neutral;
Convertible Securities; Merger Arbitrage; Event Arbitrage; Global Macro;
Distressed Debt; High Yield; REITs; and Dedicated Short.
Concentrated
Tactical/
Equity
CONCENTRATED EQUITY (Moderate) Options
19%
Moderate growth strategy using long-only equity mutual funds with 8%
Global Cycle
concentrated portfolios (<30 holdings). To reduce potential volatility, the
HYBRID 23% CONCENTRATED EQUITY
strategy diversifies among a group of niche managers across various
GLOBAL CYCLE TACTICAL/ OPTIONS
styles such as Contrarian Value; Multi-cap; High ROE Growth; GARP;
Sector Rotation and Dedicated Short. Short-index securities are used as a CASH
hedge in perceived periods of high market risk.
Top Ten Holdings
GLOBAL CYCLE (Aggressive) Security Symbol % Allocation
Aggressive growth strategy using theme-based mutual funds and/or Cash 14.2%
ETFs on a global scale. Themes pursued tend to be in the midst of a long, Hussman Strategic Growth Fd HSGFX 4.2%
positive business cycle. Sample themes may include India Equity; China
FPA Crescent Fund FPACX 4.0%
Equity; Alternative Energy; Global Infrastructure and Frontier Markets.
FMI Large Cap Fund FMIHX 3.3%
Short-index securities are used as a hedge in perceived periods of high
market risk. Jensen Portfolio JENIX 3.2%
Matthews India Fund MINDX 3.1%
TACTICAL Osterweis Fund OSTFX 3.1%
Flexible strategy that is short-term focused with the purpose of hedging Forward Global Infras Fund KGIYX 3.1%
the portfolio at the Fund level and/or pursuing certain tactical market Jennison Health Sciences Fund PHSZX 3.0%
opportunities. Opportunities may be on the long or short side of the
T. Rowe Price Africa & Mid East TRAMX 3.0%
market in areas such as Oil, Natural Gas, Gold, Market Indexes, etc. A
selection of options and ETFs are applied in the Tactical sub-strategy. *Holdings can change at any time without notice.
Share Classes Fund Information
Net Min. Initial Name
Class Symbol 12b-1 Fee Max Load
Expense Investment Transfer Agent: Gemini Fund Services, LLC
A EASAX 0.25% Ratios
1.95% 5.50% $2,500 Distributor: Northern Lights Distributors, LLC
C EASYX 1.00% 2.70% None $2,500 Custodian: First National Bank of Omaha
I EASIX None 1.70% None $500,000 Auditor: Tait, Weller and Baker, LLP
*Net expense ratios as of 4/30/09. As should be the case with all mutual Legal Counsel: Thompson Hine, LLP
funds, as assets increase in the Fund, operating expenses should decrease.
*Mutual Funds involve risk including possible loss of principal.
*The Fund may invest in small, less well-known companies, which may be subject to more erratic market movements than large-cap stocks; foreign securities, which
are subject to currency fluctuations and political uncertainty; and derivative securities, which may carry market, credit, an d liquidity risks. These risks may result in
greater share price volatility.
*An index is an unmanaged group of stocks considered to be representative of different segments of the stock market in genera l. You cannot invest directly in an
index. The S&P 500 Index is an unmanaged composite of 500-large capitalization companies. The index is widely used by professional investors as a performance
benchmark for large-cap stocks.
*An investor should consider the Fund's investment objective, risks, charges and expenses carefully before investing. This and other information
about the EAS Genesis Fund is contained in the Fund's prospectus, which can be obtained by calling 1 -877-EAS-0757 (1-877-327-0757). Please read the
prospectus carefully before investing. The Fund is distributed by Northern Lights Distributors, LLC, member FINRA/SIPC.
EMERALD ASSET ADVISORS, LLC | 2843 Executive Park Drive | Weston, Florida 33331 | T: 954.385.9624 | TF: 1.877.EAS.0757
info@EmeraldEAS.com | www.EASfunds.com