Glossary of Terms2022-03-09T14:22:12-05:00

Glossary of Terms

Alpha

Alpha is a measure of an investment’s performance compared to a benchmark, such as the S&P 500.  A positive alpha of 1.0 means the fund or stock has outperformed its benchmark index by 1 percent.  A similar negative alpha of 1.0 would indicate an underperformance of 1 percent.  Compared to the S&P 500 and are calculated since inception of the Fund’s A-Share.

Basis Point

Basis point (BPS) refers to a common unit of measure for interest rates and other percentages in finance.  One basis point is equal to 1/100th of 1%, or 0.01%, or 0.0001 and is used to denote the percentage change in a financial instrument.  The relationship between percentage changes and basis points can be summarized as follows:  1% change = 100 basis points, and 0.01% = 1 basis point.

Best in class

The highest current performance level in an industry, used as a standard or benchmark to be equaled or exceeded.

Beta

Beta is a measure of the volatility, or systematic risk, of a security in comparison to a benchmark.  A portfolio with a beta less than 1 is less volatile than the market.

Beta is a historic measure of a fund’s relative volatility, which is one of the measures of risk; a beta of 0.5 reflects half the market’s volatility using the S&P 500 as the benchmark.  Compared to the S&P 500 and are calculated since inception of the Fund’s A-share.

Bloomberg Barclays U.S. Aggregate Bond Index

The Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar denominated, fixed-rate taxable bond market. This includes treasuries, government-related and corporate securities, mortgage-backed securities, asset-backed securities and collateralized mortgage-backed securities. You cannot invest directly in an index.

Correlation

Correlation measures the degree to which two securities move in relation to each other.

Illiquidity premium

Compensation for the risk of loss relative to an investment’s fair value if an investment needs to be converted to cash quickly.

J-curve

A J-curve demonstration is a representation of any value that initially falls before recovering and ultimately rising; it shifts in investment values and the impacts of policy changes on applicable economic metrics.  The theory focuses on the premise that an internal rate of return initially drops until a level of stability is established that allows a particular business or investment to enter into a profitable state.

Pure Play

A pure play is a company that invests its resources in only one line of business.  As such, this type of stock has a performance that correlates highly to the performance of the stock’s particular industry.  For examples, many electronic retailers or “e-trailers” are pure plays.

S&P 500 Index

The S&P 500 Index is a registered trademark of Standard & Poor’s and is an unmanaged broadly-based index of the common stock prices of 500 large U.S. companies that includes the reinvestment of dividends. Unlike mutual funds, indices are not managed, and do not incur fees or expenses. You cannot invest directly in an index.

The S&P SmallCap 600

The S&P SmallCap 600 is an index of small-cap stocks managed by Standard & Poor’s. It tracks a broad range of small-sized companies that meet specific liquidity and stability requirements.

Sidecar Deals

Sidecar Fund is an investment vehicle used in a private equity fund structure to provide for co-investment opportunities by one or more investors in the Fund, which investments are generally made alongside investments by the main Fund.

Sortino Ratio

Sortino Ratio is used to measure the level of risk in a portfolio.  The higher the Sortino ratio, the better a portfolio has performed relative to the risk taken.  It is often use to compare the risk take between different portfolios to achieve a certain return.  Calculated since inception of the Fund’s A-Share.

Standard Deviation

Standard Deviation is the square root of the variance of each data point relative to its mean.  It measures the historical volatility of an investment relative to its annual rate of return.

Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund. This and other important information is contained within the Fund’s Prospectus, which can be obtained by calling (888) 445-6032, or by visiting our website www.wildermuthfund.com. The Fund’s Prospectus should be read carefully before investing.

The Fund is a closed-end interval fund.  An investment in the Fund is generally subject to market risk, including the possible loss of the entire principal amount invested. You should consider that you may not have immediate access to the money you invest for an indefinite period of time. An investment in our shares is not suitable for you if you need immediate access to the money you invest.  An investment in the Fund represents an indirect investment in the securities owned by the Fund.

Important Risk Disclosures

Investing in the Fund involves risks, including those summarized below. Click here to read the Important Risk Disclosures of investing in the Fund which are outlined in the prospectus.

You should consider the shares to be an illiquid investment. Even though the Fund will make periodic repurchase offers to repurchase a portion of the shares to provide some liquidity to shareholders, only a limited number of shares will be eligible for repurchase by us. Once each quarter, the Fund will offer to repurchase at net asset value (NAV) per share no less than 5% of the outstanding shares of the Fund, unless such offer is suspended or postponed in accordance with regulatory requirements. The Fund may increase the size of these offerings up to a maximum of 25% of the Fund’s outstanding shares, in the sole discretion of the Board, but it is not expected that the Board will do so.

Investors should understand that valuation issues involving the Fund’s investments in early stage and other private companies have led to delays in the completion of the Fund’s annual audit and the quarterly share repurchase program. A recurrence of this issue would further impact the liquidity of an investor’s shares.

The shares have no history of public trading, nor is it intended that the shares will be listed on a public exchange at this time.  We do not expect a secondary market in the shares to develop. Even if any such market were to develop, closed-end fund shares trade frequently at a discount from net asset value, which creates a risk of loss for investors purchasing shares in the initial public offering.

Private equity has a long-term investment time horizon with low liquidity needs.

Certain investments in the Fund are illiquid making it difficult to sell these securities and possibly requiring the Fund to sell at an unfavorable time or price.  The value of certain Fund investments, in particular non-traded investment vehicles, will be difficult to determine and the valuations provided will likely vary from the amounts the Fund would receive upon sale or disposition of its investments.

Like all financial instruments, the value of these securities may move up or down, sometimes rapidly and unpredictably. The value of your investment in the Fund at any point in time may be worth less than the value of your original investment, even after taking into account any reinvestment of dividends and distributions.

The principal risks of the Fund also include investing in small and mid-cap stocks, REITS, MLPs, fixed income securities, foreign investments, and commodities. The Fund engages in the use of leverage, short-selling, hedging, and other speculative investment practices that may accelerate losses.

The Fund is classified as a non-diversified management investment company under the Investment Company Act of 1940, as amended. This means that the Fund may invest a greater portion of its assets in a limited number of issuers than would be the case if the Fund were classified as a diversified management investment company. Accordingly, the Fund may be more sensitive to any single economic, business, political or regulatory occurrence than the value of shares of a diversified investment company.

The information provided herein is not directed at any investor or category of investors and is provided solely as general information about our product to otherwise provide general investment education. If you are an individual investor, contact your financial advisor or other fiduciary unrelated to Wildermuth Fund or its affiliates about whether any given investment idea, strategy, product or service described herein may be appropriate for your circumstances.

Portfolio characteristics are subject to change.

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Glossary of Terms | Fund Holdings

Class A: WESFX
CUSIP: 96812D107

Class C: WEFCX
CUSIP: 96812D206

Class I: WEIFX
CUSIP: 96812D305

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