Small-Mid Cap Fund
Investment Objective
Long-term capital appreciation.
Investment Strategy
Under normal market conditions, the Fund invests at least 80% of its net assets in U.S. equity securities with small-mid market capitalizations that we believe are undervalued. Equity securities consist of common and preferred stocks. Small-mid cap companies are defined by the Fund as companies with market capitalizations in the range of those market capitalizations of companies included between the largest company in the Russell 2500 Index and the 1500th largest company in the Russell 2500 Index at the time of purchase.
Key Advantages of Investing
Opportunity
Small and mid-cap companies tend to be underfollowed in the earlier stages of their growth potential, causing divergences between price and value that present compelling opportunities for investors.
Disciplined Approach
An actively managed, valuation-centric approach and commitment to a long-term horizon enhances our potential to buy good businesses at compelling valuations.
Experienced Team
The portfolio management team has decades of experience in small and mid-cap equities and is supported by a disciplined, nimble research team.
Fund Facts
Ticker:
VSMMX
CUSIP:
92262L863
Inception Date:
Dec. 15, 2025
Benchmark:
Russell 2500
Minimum Purchase:
$2,500
Expense Ratio:
1.04%
Period and Annualized Total Returns (%)
As of TBD
| QTD | Since Inception | |
|---|---|---|
| Class I | - | - |
| Russell 2500 | - | - |
Performance data quoted represents past performance. Past performance does not guarantee future results. The 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 data quoted. Investors may obtain performance data current to the most recent month-end by calling 833-399-1001.
Top Ten Holdings (%)
As of 03/31/2026
Sector Exposure (%)
As of 03/31/2026
| Fund | Russell 2500 |
|---|
Current and future portfolio holdings are subject to risk. The security holdings are presented to illustrate examples of the securities that the fund has bought and the diversity of areas in which the funds may invest, and may not be representative of the fund's current or future investments. Portfolio holdings are subject to change and should not be considered investment advice.
Portfolio Statistics
As of 03/31/2026
1Source: FactSet
Risk Statistics (since inception)
As of 03/31/2026
Source: Morningstar
1Beta vs. Russell 2500 Index
Investors should carefully consider the investment objectives, risks, and charges and expenses of the fund before investing. The prospectus contains this and other information about the fund, and it should be read carefully before investing. Investors may obtain a copy of the prospectus by calling 833-399-1001.
New Fund Risk The fund is newly organized and has little or no operating history. While the Adviser has experience in investment-related activities, the Adviser has limited experience managing registered investment companies.
The fund is distributed by Ultimus Fund Distributors, LLC. (Member FINRA). VELA and Ultimus Fund Distributors are unaffiliated.
Standard Deviation measures the volatility of the Fund’s returns. Beta measures the Fund’s sensitivity to market movements. Sharpe Ratio uses the Fund’s standard deviation and average excess return over the risk-free rate to determine reward per unit of risk. Up/Down Capture Ratio is used to evaluate how well a portfolio performed relative to an index during periods when that index has risen/dropped.
Portfolio Turnover is calculated by dividing the lesser of purchases or sales of portfolio securities for the fiscal year by the monthly average of the value of the portfolio securities owned by the Fund during the fiscal year.
Weighted Average Market Capitalization is a dollar-value measurement of the size of companies in a portfolio or index. In such a weighting scheme, an average figure is derived from the market capitalizations of each company (their market prices multiplied by the number of shares outstanding) multiplied by their weights in the portfolio or index.
Active Share is a measure of the percentage of stock holdings in a manager’s portfolio that differ from the benchmark index. Active share was calculated using an index ETF.
The Russell 2500 Index is a market-cap weighted stock market index that includes 2,500 small-cap and mid-cap stocks. It represents the smallest companies in the broader Russell 3000 Index, which encompasses approximately 98% of the investable US equity market.
Important Risk Information
Active Management Due to the active management of the Fund the Fund could underperform its benchmark index and/or other funds with similar investment objectives and strategies.
Important Risk Information Investing involves risk, including loss of principal. The value of the fund's shares, when redeemed, may be worth more or less than their original cost. Value stocks are those that are believed to be undervalued in comparison to their peers due to adverse business developments or other factors. Value investing is subject to the risk that the market will not recognize a security’s inherent value for a long time or at all, or that a stock judged to be undervalued may actually be appropriately priced or overvalued. In addition, during some periods (which may be extensive), value stocks generally may be out of favor in the markets.
Small Cap and Mid Cap Company Risk Investments in small cap and mid cap companies may be riskier than investments in larger, more established companies. The securities of these companies may trade less frequently and in smaller volumes than securities of larger companies. In addition, small cap and mid cap companies may be more vulnerable to economic, market and industry changes. As a result, share price changes may be more sudden or erratic than the prices of other equity securities, especially over the short term. Because smaller companies may have limited product lines, markets or financial resources or may depend on a few key employees, they may be more susceptible to particular economic events or competitive factors than large capitalization companies.
Investments in smaller companies may be riskier, less liquid, more volatile and more vulnerable to economic, market and industry changes than investment in larger, more established companies.
VELA Investment Management does not provide tax advice. Please consult your tax advisor before making any decisions or taking any action based on this information.