Risk Factors

Each investment program and fund entail substantial risks, including, but not limited to, those listed below. You should carefully consider the following summary of risk factors along with any other disclosures provided to you by Eagle Capital Management LLC or its affiliates (“Eagle Capital”). The below is subject to any account agreement provided by Eagle Capital, Eagle Capital’s Form ADV and any offering or governing documents with respect to a fund.

Speculative Investment – High Degree of Risk

Market risks are inherent in all securities investments to varying degrees, and there can be no assurance that the investment objective of an Eagle Capital fund or account will be achieved.  In fact, certain investment practices of Eagle Capital can potentially increase the adverse impact on an investment portfolio.  The activities of a fund or account could result in substantial losses under certain circumstances. No guarantee or representation is made that any investment strategy will be successful. Investors must be prepared to bear the loss of their entire investment.

Diversification and Concentration

Eagle Capital may select investments that are concentrated in a limited number or types of securities. In addition, an investment portfolio may become significantly concentrated in securities related to a single or a limited number of issuers, industries, sectors, strategies, countries or geographic regions. This limited diversification may result in the concentration of risk, which, in turn, could expose an investor or portfolio to losses disproportionate to market movements in general if there are disproportionately greater adverse price movements in such securities.

Volatility

An investment strategy may include volatile securities and/or be impacted by periods of market volatility. Prolonged volatility or changes in the volatility of such securities and/or markets can adversely affect the value of a portfolio.

Equity Securities Generally

The value of equity securities of public and private, listed companies and equity derivatives generally varies with the performance of the issuer and movements in the equity markets. As a result, investors may suffer losses if they invest in equity instruments of issuers whose performance diverges from Eagle Capital’s expectations or if equity markets generally move in a single direction and strategies or clients have not been hedged against such a general move. Investors also may be exposed to risks that issuers will not fulfill contractual obligations such as, in the case of convertible securities or private placements, delivering marketable common stock upon conversions of convertible securities and registering restricted securities for public resale.

Investment and Research Process

Before making investments, we will conduct research that we deem reasonable and appropriate based on the facts and circumstances applicable to each investment. When conducting research, we may be required to evaluate important and complex business, financial, tax, accounting and legal issues. When conducting research and making an assessment regarding an investment, we will rely on the resources reasonably available to us, which in some circumstances, whether or not known to us at the time, may not be sufficient, accurate, complete or reliable. Research may not reveal or highlight matters that could have a material adverse effect on the value of a portfolio.

Fundamental Analysis

Eagle Capital’s trading decisions may be based on fundamental analysis. Data on which fundamental analysis relies may be inaccurate or may be generally available to other market participants. To the extent that any such data is inaccurate or that other market participants have developed, based on such data, trading strategies similar to our trading strategy, we may not be able to achieve our objectives. In addition, fundamental market information is subject to interpretation. To the extent that we misinterpret the meaning of certain data, a portfolio may incur losses.

Risks Relating to Market Conditions Generally General Economic and Market Conditions

The success of our investment activities will be affected by general economic and market conditions, such as interest rates, availability of credit, credit defaults, inflation rates, economic uncertainty, changes in laws (including laws relating to taxation of investments), trade barriers, currency exchange controls, and national and international political circumstances (including wars, terrorist acts or security operations). These conditions may impact the prices of the securities in which we invest, as well as the volatility of such securities.

Competition; Availability of Investments

Certain markets in which Eagle Capital, on behalf of its clients, may invest are extremely competitive for attractive investment opportunities. As a result, there can be no assurance that Eagle Capital will be able to identify or successfully pursue attractive investment opportunities in such environments.

Key Personnel Risk

The effectiveness of our investment strategy is largely dependent upon the continued services of individuals, including the members of our investment team who make the final buy and sell decisions for the portfolio. Any departure could impact the performance of a strategy or portfolio.

Non-U.S. Investments

Investing in the securities of companies (and, from time to time, governments) outside of the United States involves certain considerations not usually associated with investing in securities of U.S. companies or the U.S. government, including political and economic considerations, such as greater risks of expropriation, nationalization, confiscatory taxation, imposition of withholding or other taxes on interest, dividends, capital gains, other income or gross sale or disposition proceeds, limitations on the removal of assets and general social, political and economic instability; the relatively small size of the securities markets in such countries and the low volume of trading, resulting in potential lack of liquidity and in price volatility; the evolving and unsophisticated laws and regulations applicable to the securities and financial services industries of certain countries; fluctuations in the rate of exchange between currencies and costs associated with currency conversion; and certain government policies that may restrict investment opportunities.

THE ABOVE IS NOT A COMPLETE LIST OF APPLICABLE RISKS AND IS SUBJECT TO THE MORE COMPLETE DISCLOSURES CONTAINED IN ANY ACCOUNT AGREEMENT PROVIDED BY EAGLE CAPITAL, EAGLE CAPITAL’S FORM ADV AND ANY OFFERING OR GOVERNING DOCUMENTS WITH RESPECT TO A FUND.