Aquila Three Peaks Opportunity Growth Fund strategy at 3 years


Three years ago, in October 2010, the investment strategy of Aquila Three Peaks Opportunity Growth Fund was launched. The fund is sub-advised by Three Peaks Capital Management, LLC which also serves as the sub-advisor to Aquila Three Peaks High Income Fund. The team managing both funds focuses their research capabilities on a universe of high-yield debt issuers in relatively stable industries.

“We believe that we take a unique approach to selecting equity investments‚” said Sandy Rufenacht, Co-Portfolio Manager. “We have a long history of conducting research in the high-yield corporate bond market, and investing in high-yield issuers when our research indicates they are successfully and prudently managing leverage and the corporate balance sheet. The characteristics we look for in high-yield debt issuers have helped us identify opportunities for improvement in the equity performance of those companies. Our experience, research, and strategy in the high-yield debt market is the foundation on which we built the strategy of Aquila Three Peaks Opportunity Growth Fund.”

Over the 3-year history of the Fund strategy, the portfolio managers have charted a course that is unlike that of other equity fund managers, searching for investment opportunities that equity analysts, without a perspective on the full corporate balance sheet, may overlook. The essence of the investment thesis is that certain companies in less-cyclical industries experience some degree of stability in revenue generation that may enable them to sustain the leverage of high-yield debt. More importantly, when corporate managers are committed to paying down debt and improving the corporate balance sheet, that can lead to improvement in the performance of the stock as their results are recognized in the market.

Over the past 3 years, through challenging market and economic shifts, Aquila Three Peaks Opportunity Growth Fund has pursued the Fund objective of capital appreciation, while charting a course unlike that of other equity funds. We are pleased to share the results with you, and we invite you to take a closer look at Aquila Three Peaks Opportunity Growth Fund. You may find that it is just what you were looking for.

Before investing in the Fund, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. Mutual fund investing involves risk and loss of principal is possible. Risks include, but are not limited to, potential loss of value, market risk, financial risk, interest rate and credit risk, and investments in highly-leveraged companies, lower-quality debt securities, foreign markets and foreign currencies.