https://www.sec.gov/Archives/edgar/data/1511699/000089418925006788/leutholdgrizzlyshortfundpr.htmManaged Portfolio Series (the “Trust”)Leuthold Grizzly Short FundSupplement dated September 3, 2025to the Prospectus and Statement of Additional Informationdated January 28, 2025, as amended
Reverse Stock Split – Leuthold Grizzly Short Fund (GRZZX)
The Board of Trustees of the Trust, on behalf of its series, the Leuthold Grizzly Short Fund (the “Fund”), has approved a one-for-four reverse stock split of the issued and outstanding shares of the Fund. After the close of markets on September 22, 2025, the Fund will effect a reverse split of the Fund’s issued and outstanding shares of common stock held by shareholders of record at the close of business on September 22, 2025. No trading in the Fund will be permitted on September 22, 2025, the day of the stock split, or on September 19, 2025, if the trades settle on the day of the stock split. The shares of the Fund will be offered on a split-adjusted basis beginning on September 23, 2025.
As a result of the reverse stock split, every four shares of the Fund will be exchanged for one share of the Fund. Accordingly, the number of the Fund’s issued and outstanding shares will decrease by 75%, and the Fund’s per share NAV will increase fourfold. The reverse share split provides shareholders of Fund with fewer shares of the Fund, but the total dollar value of a shareholder’s investment in shares of the Fund, will not change due to the reverse stock split, and each shareholder will continue to own approximately the same percentage (by value) of shares of the Fund immediately following the reverse stock as the shareholder owned immediately prior to the reverse stock split. The reverse stock split will not be a taxable event, nor does it have an impact on the Fund’s holdings or performance.The total dollar value of a shareholder’s investment will not be affected by the reverse stock split. The table below illustrates the effect of a hypothetical one-for-four reverse split on a shareholder’s investment:..
Comments
dA more rational idea (further down in the discussion) ) also sounds possible: ”Commission and margin rules at many banks have a share price lower threshold value, below which margin requirements are far stricter and commissions are higher. Doing a reverse split puts them back above this threshold …Option markets tend to dry up when stocks go below $3 or so ”
If Leuthhold were to come out with an etf version of Grizzly I might be inclined to own a few shares. Using an OEF for the purpose of hedging really doesn’t make a lot of sense to me. I think Leuthold waives short term / frequent trading fees & restrictions on this one. But very likely your brokerage wouldn’t.
Schwab has an interesting piece out. (They include leveraged etfs in the same discussion.) As regards inverse funds, timing is everything. Longer-term you”ll lose your shirt. Still, some find use for them in small amounts to lower overall portfolio risk. Fidelity will tell you inverse funds are only suited for very short-term use (hours / days). I might disagree somewhat.
From the linked Schwab article: ”With a reverse share split, investors will see a higher share price in their accounts, but the number of shares they own will decline, leaving the total value of the investment unchanged. While not all leveraged and inverse ETPs that have been shuttered have undergone a reverse split prior to closing, this technique allows issuers to avoid delisting poorly performing funds that are trending toward penny stock status by raising the share price.”