|  CUSIP: 

Penn Capital Special Situations Small Cap Equity Fund

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The Special Situations Small Cap Equity Fund seeks to provide catalyst driven capital appreciation and uncorrelated alpha. The Fund utilizes a high conviction, private equity approach to the public market with Penn Capital’s Complete Capital Structure Analysis®. The Fund targets small capitalization companies with complex balance sheets and minimal research coverage to capture inefficiencies that traditional equity analysts frequently avoid. Focusing on undervalued companies moving towards their optimal capital structure, the Fund exhibits a differentiated return profile with 50% greater M&A experience than the Russell 2000 Index.


The Penn Capital Special Situations Small Cap Equity Fund seeks to provide capital appreciation.


The Fund generally intends to invest in 50 to 90 securities identified by the Advisor’s fundamental, bottom-up value driven research. The portfolio construction process involves both quantitative and qualitative fundamental analysis.

Investment Type Examples

Common stock, preferred stock, convertible securities, and other investment companies including exchange traded funds (ETFs), American Depository Receipts (ADRs), and real estate investment trusts (REITs).

Industry Examples

Consumer Discretionary, Consumer Staples, Energy, Financials, Healthcare, Industrials, Materials, Technology and Telecommunication Services.


AS OF 09/30/2021
Ticker: PSCNX | CUSIP: 707269304
MTD QTD YTD 1 Year 3 Year 5 Year 10 Year Since Inception
Penn Capital Special Situations Small Cap Equity Fund
Russell 2000 Index
AS OF 09/30/2021
Ticker: PSCNX | CUSIP: 707269304
Penn Capital Special Situations Small Cap Equity Fund
MTD -0.71
QTD -1.52
YTD 30.91
1 Year 82.57
3 Year 18.05
5 Year 17.81
10 Year n/a
Since Inception
Russell 2000 Index
MTD -2.95
QTD -4.36
YTD 12.41
1 Year 47.68
3 Year 10.54
5 Year 13.45
10 Year n/a
Since Inception

Investment Process

Step 1
Fundamental Financial Analysis

Penn Capital’s analysts and portfolio managers screen for companies with improving financial metrics to determine relative value.

Step 2
Qualitative Research

Penn Capital’s analysts and portfolio managers perform qualitative research to confirm relative value.

Step 3
Liquidity Outlook/Covenant Analysis

Penn Capital’s analysts and portfolio managers screen for liquidity issues and perform covenant analysis, bank loan availability and asset value analysis.

Step 4

Primary and secondary analysts and portfolio managers present best new idea(s) to entire team for evaluation and consideration.

Step 5
Decision Making

Two step approval process requires approval first by the portfolio manager, and second by either the Director of Research or the Chief Investment Officer.

Step 6
Portfolio Construction

Penn’s Equity Strategy Committee meets weekly to discuss macro-view and to determine sector allocations.

Fees & Expenses

Total Fund annual net operating expenses (after fee waiver/expense reimbursement) are: Institutional Class 1.09%.

Total Fund annual gross operating expenses (before fee waiver/expense reimbursement) are: Institutional Class 3.09%.

The Fund's advisor has contractually agreed to waive its fees and/or pay for operating expenses of the Fund to ensure that total annual fund operating expenses do not exceed 1.09% of the average daily net assets for the Institutional Class shares of the Fund, respectively. This agreement is in effect until October 30, 2021. The Fund’s advisor is permitted to seek reimbursement from the Fund of fees waived for a period of three years from the date of the waiver or payment to the extent it does exceed the expenses limits.

Portfolio Managers

Eric J. Green, CFA

Chief Investment Officer – Equity, Senior Portfolio Manager, Senior Partner

Mr. Green has been with Penn Capital since 1997. As CIO of Equity, he is responsible for guiding the firm’s equity strategies. Mr. Green serves as a Senior Portfolio Manager for Penn Capital’s Small Cap and Small to Micro Cap equity strategies. 

Prior to joining Penn Capital, Mr. Green was with the Federal National Mortgage Association, the Royal Bank of Scotland, and the United States Securities and Exchange Commission where he served as a financial analyst in the Division of Investment Management. Mr. Green is also Vice Chairman of the Board of Directors for the Anti-Defamation League (ADL) Mid-Atlantic Region and Co-Chairman of the ADL's 2018 Walk Against Hate. He received a BSBA cum laude from American University and an MBA from the Yale School of Management.

Richard Hocker

Founder and Chief Executive Emeritus

Mr. Hocker founded Penn Capital in 1987 and serves as Chief Executive Emeritus. His investing and institutional non-investment grade corporate lending experience spans over 40 years. While serving as a Partner for Delaware Investment Advisors (DIA) from 1977 to 1987, he was responsible for building the investment side of DIA’s fixed income operation. During this period, Mr. Hocker developed and managed one of the nation’s first high yield mutual funds, the Delchester High Yield Bond Fund. He also served as the first high yield bond manager for several institutional clients including General Motors, State of Vermont Teachers Retirement Association, and Colorado Fire and Police.

Prior to DIA, Mr. Hocker trained as a corporate lender and supported key senior lenders at Provident National Bank, which is now PNC Bank, a top 20 US Banking institution. He later rose to serve as head of the investment division. Mr. Hocker also founded and served as CEO of Covenant Bank, a NJ based regional bank which grew to 16 branches and $500m in deposits before being acquired by First Union in 1997.

He and his wife, Marcia Hocker, are the founders of the Ethel Mae Hocker Foundation which provides scholarship opportunities to less fortunate, deserving Greater Philadelphia-area elementary and high school students who have demonstrated leadership abilities, academic success, commitment to the community, and need financial support. Mr. Hocker received both his BS in Accounting and an MBA in Finance from the Kogod School of Business at American University.