Investment Philosophy

A Focus on Free Cash Flow

When it comes to investing, we’re always looking for high-performing, quality companies. It’s become notoriously difficult to parse corporate earnings reports, attempting to make sense of balance sheets and income statements, which can be subject to financial engineering. This is why we focus on one of the most important and reliable financial metrics there is: free cash flow.

Our Process

At TrimTabs, it is our firm belief that investors should be able to access alpha-oriented strategies that aim to outperform the broad market without paying high management fees.

The implementation of our Quantamental process is grounded in our decades of research. Because the investment challenge is so complex and, typically, volatile, this research is based on strict quantitative principles. As we apply our analysis, we utilize a disciplined, rules-based approach. At the day-to-day level, the process allows our team discretion with regard to allocations to industries, sectors, and capitalization segments. Additionally, we monitor portfolio turnover and tax effects. These avenues of discretion also allow us to respond quickly to changing market conditions. We are dedicated to providing investors a steady application of our proven quantitative philosophy. Our goal is to deliver alpha, or outperformance, while minimizing surprises for our clients.

Investment philosophy

Investing involves risk. Principal loss is possible.

Free Cash Flow (FCF) represents the cash that a company is able to generate after accounting for expenditures.

Alpha is a measure of performance on a risk-adjusted basis.

Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the statutory and summary prospectuses, a copy of which may be obtained by visiting the Fund’s website at www.trimtabsfunds.com/ttac, www.trimtabsfunds.com/ttai. Please read the prospectus carefully before you invest.

Quasar Distributors, LLC

There is no guarantee that TTAC will achieve its investment objective. Investing involves risk, including the possible loss of principal. Because the Fund is an ETF (rather than a mutual fund), shares are bought and sold at market price (not NAV), may trade at a discount or premium to NAV, and are not individually redeemable. Owners of the shares may acquire those shares from the Fund and tender those shares for redemption to the Fund in Creation Unit aggregations only, consisting of 25,000 shares. Brokerage commissions will reduce returns. Investments in the Fund include risks associated with small-and mid-cap securities, which involve limited liquidity and greater volatility than large-cap securities.

There is no guarantee that TTAI will achieve its investment objective. Investing involves risk, including the possible loss of principal. Because the Fund is an ETF (rather than a mutual fund), shares are bought and sold at market price (not NAV), may trade at a discount or premium to NAV, and are not individually redeemable. Owners of the shares may acquire those shares from the Fund and tender those shares for redemption to the Fund in Creation Unit aggregations only, consisting of 25,000 shares. Brokerage commissions will reduce returns. Investments in the Fund include risks associated with small-and mid-cap securities, which involve limited liquidity and greater volatility than large-cap securities. Returns on investments in foreign securities could be more volatile than investments in domestic securities.