497 1 v426142_497.htm 497
Filed Pursuant to Rule 497(e)
1933 Act Registration No. 333-175116
1940 Act Registration No. 811-22574
WHITEBOX TACTICAL OPPORTUNITIES FUND
WHITEBOX MARKET NEUTRAL EQUITY FUND
WHITEBOX TACTICAL ADVANTAGE FUND
Supplement dated December 17, 2015, to the Prospectuses dated January 16, 2015 (as supplemented March 5, 2015, September 1, 2015 and November 16, 2015)
The Board of Trustees (the “Trustees”) of Whitebox Mutual Funds (the “Trust”) has determined that it is in the best interests of the shareholders of the Whitebox Tactical Opportunities Fund, the Whitebox Market Neutral Equity Fund and the Whitebox Tactical Advantage Fund (collectively, the “Funds”) to liquidate and terminate the Funds.
The liquidation of the Funds is expected to be effective on or about January 19, 2016 or at such other time as may be authorized by the Trustees (the “Liquidation Date”). Termination of the Funds is expected to occur as soon as practicable following liquidation.
Effective at market close on December 17, 2015, the Funds will cease accepting purchase orders from new or existing investors. The Funds anticipate making a distribution of any income and/or capital gains of the Funds in connection with its liquidation. This distribution may be taxable. The tax year for the Fund will end on the Liquidation Date.
Shareholders of the Funds may redeem their shares at any time prior to the Liquidation Date.
If a shareholder has not redeemed his or her shares as of the Liquidation Date, the shareholder’s account will be automatically redeemed and proceeds will be sent to the shareholder at his or her address of record. Liquidation proceeds will be paid in cash for the redeemed shares at their net asset value.
To prepare for the closing and liquidation of the Funds, the Funds’ portfolio managers will likely increase the Funds’ assets held in cash and similar instruments in order to pay for Fund expenses and meet redemption requests. As a result, the Funds are expected to deviate from their stated investment strategies and policies and will no longer be managed to meet their investment objectives.
Redemptions of shares (including liquidating redemptions) are generally taxable. Shareholders should consult their personal tax adviser concerning their particular tax situations.
All expenses of the liquidation of the Funds will be borne by Whitebox Advisors LLC.
A shareholder may obtain additional information by contacting Investor Services at (855) 296-2866 Monday through Friday 9:00am to 8:00pm EST or by contacting his or her plan sponsor, broker-dealer, or financial institution.
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Prospectus Supplement Dated December 17, 2015
Please Read Carefully and Keep for Future Reference
I'm miffed Mark not asking Yours Truly if I saw it coming. I did I Did I DID !!!
I don't think they run more than three funds. I guess some strategies are more suited for a hedge fund format and vice versa. My impression was they had a great record as hedge fund managers. Not every manager is suited for running a fund that requires daily liquidity. I also see these kinds of closures as a contrarian indicator. Their style is probably just about to come back in favor. The same thing happened in 1999 at the peak of the dotcom bubble. All these value managers lost their jobs, notably Robert Sanborn at Oakmark, right before they were about to be proven right on the fundamentals. But with fund investing it's not enough to be right on the fundamentals. You have to be right on the timing too or effectively you're wrong.
Like Jeff Vinik. But I don't mind my managers being a little early - it's when they're late to the party that there's a problem.
AP story, July 19, 1996, by Bruce Meyerson: "Undertaken about a half year later, Jeffrey Vinik's now infamous shift from stocks to bonds might have seemed genius rather than misguided. But the same could be said not only of Vinik - the long-acclaimed, but quickly defamed form Fidelity's Magellan Fund manager - but any number of strategists ..."
I'm the first one the say "you have to get the timing right". When vs Why. Applies to us buying funds AND applies to mutual fund managers buying stocks. The "fundamentals" and "technicals" might say anything. They are responsible for managing investors money.
The problem is not necessarily with the Thesis. I will not say Hussman is wrong. The problem is with the IMPLEMENTATION of the strategy. Hussman says he is never net short. Well he sucks at hedging since his performance is that of an inverse S&P 500 fund. Same with Whitebox. All you had to do is read the annual reports and commentaries. You expect fund to behave a certain way based on how it is invested vs the market is doing. It made absolutely no sense how the portfolio was acting. Either manager is BSing or he is an academic.
Though suspect it helps explain the recent departure of Jason Cross.
Nothing like low oil prices to kill alternative energy.
Nothing like a bull market to kill alternative funds.
Still, dissappointing. I thought the folks at Whitebox did a lot right, except perhaps the most important thing...not lose money during bull markets.
I have to wonder though if Mr. Buffett has been right all along. Just stick your money in an S&P 500 index and go live your life. If the smart people in the room with all the toys and tools can't get this stuff right who do I think I'm fooling. Some pondering I must do.
RSIVX, I think people are bashing out of proportion. No one said it did not have any risks. People expecting RPHYX out of RSIVX without reading prospectus going to be dissapointed.
Still a believer in ARIVX. Never owned WAFMX and GPMCX
Now two funds I own and who belong are FVALX and INTLX. Luckily for me have held them forever and will continue to hold "forever". With FVALX manager didn't time the S&P 500 puts correctly or it would be breaking even. Hard to be Value Fund and time the short incorrectly. I'm in for the long haul in these two.
The one dissapointment for me has been ICMBX. Expected it to have held up much better.
Finally, got lucky with WBLSX to OTCRX switch at Vanguard. I feel for WBMAX investors.