EAS Genesis Fund Presentation

HEDGED INVESTING…in a flexible allocation mutual fund
EDGED INVESTING

An investor should consider the Fund’s investment objective, risks, charges and expenses carefully before investing. This and other
information about the EAS Genesis Fund is contained in the Fund’s prospectus, which can be obtained by calling 1-877-EAS-0757 (1-
877-327-0757). Please read the prospectus carefully before investing. The Fund is distributed by Northern Lights Distributors, LLC,
member FINRA/SIPC.
EMERALD ASSET ADVISORS, LLC | 2843 Executive Park Drive | Weston, Florida 33331 | 954.385.9624 | 1.877.EAS.0757
info@EmeraldEAS.com | www.EASfunds.com

“The Noah Rule: Predicting rain
doesn’t count; building arks does.”

- Warren Buffet


1

The Advisor

• Emerald Asset Advisors, LLC – RIA firm founded in 1998
• Seasoned manager of asset allocation portfolios that go beyond
traditional strategies
• Focus on alternative low correlation strategies through the use of
specialized mutual funds and ETFs
• Recognized in national media outlets including Wealth Manager,
Registered Rep, Investment News and The Wall Street Transcript

AN INNOVATIVE APPROACH TO
MONEY MANAGEMENT


2

Today’s Market Landscape

A serious retirement crisis looms for boomers, young and old:

• Investment climate Very different from the 1980’s and 1990’s

• Secular stock bear market Continues to derail retirement plans

• The return of inflation A serious threat to wealth and retirement

• High-Quality Bond investing Returns too limited to be a retirement savior anymore

• Asset allocation Traditional “style boxing” has many flaws

“The problem is never to get new, innovative thoughts into
your mind, but how to get old ones out.” - Dee Ward Hock


3

Our Mission
Fighting the good fight toward retirement

• Be flexible in our investment approach
• Be adaptive to changes in the global economy and markets
• Be opportunistic but not aggressive
• Avoid “style box” thinking in our portfolio construction
• Find bull markets wherever they exist (via long or short investments)
• Capture as much of the market’s upside and as little of its downside as possible
• Keep losses short in duration and shallow in magnitude
• Produce positive returns in nearly all market environments

OUR GOAL IS TO PROVIDE AN ALTERNATIVE PATH TO
LONG-TERM CAPITAL PRESERVATION AND GROWTH


4

Our Objective

 Old idea, different approach
Our goal is to construct portfolios that produce the key benefits often found in hedge
fund investing…
 Absolute return focused
 Low correlation to the global stock and bond markets
 Low volatility relative to the stock market
 Competitive upside capture with limited downside capture
 Flexible investment styles
…but without the issues inherent in the hedge fund Limited Partnership (LP) structure:
x Lock-ups and limited liquidity
x Limited regulation and lack of transparency
x Potential for excess leverage
x High investment minimums and high management fees
x Tax inefficiency

WELCOME TO OUR FUND


5

Fund Overview

 Diversified strategies in a moderate allocation fund
OUR FUND
• Absolute return focus
• Low market correlation
• Low relative volatility
• Tax aware

USING MUTUAL FUNDS & ETFS

• No lock-up period • Daily liquidity
• Full transparency • SEC-registered vehicles
• Cost effective

HEDGED INVESTMENT
STRATEGIES/STYLES
• Top manager talent
• Flexible investment styles
• Alpha generators


6

Fund Composition

 The Fund combines our three distinct sub-investment strategies: Hybrid, Concentrated Equity and Global Cycle

CONCENTRATED GLOBAL
HYBRID
EQUITY CYCLE

• Conservative • Moderate • Aggressive
• Alternative strategies • Alpha(1)-driven equity • Global market plays
• Absolute return • Long-term growth • Long-term growth
• Low net equity exposure • Long equity-biased • Primarily net long
• Long and short positions • Periodic hedge overlay • Opportunistic short
• 3-year horizon • 5-year horizon positions
• 10-year horizon

Opportunistic Allocation Fund
(1) Alpha: A measure of investment performance adjusted for risk taken. It indicates the portion of a manager’s return that can be attributed to
the manager’s skill rather than the movement of the overall market. A positive alpha implies that a manager has added value over and above the
performance of the market (also referred to “excess return”). Conversely, a negative alpha would indicate that the manager has reduced value by
underperforming the market.

7

Fund Application

 A diversified multi-strategy holding that can be used as an alternative to balanced funds,
target date funds, lifestyle funds and/or low volatility hedge fund-of-funds
Global Market Exposure
•India equity
Global •China equity
Cycle •Global Infrastructure
•Alternative energy
•Frontier Markets
Core Equity Holding
•Contrarian value
Reward

Concentrated •Multicap investing
Equity •High ROE growth
•GARP
•Sector rotation
Low Volatility Growth
•Long/short equity
Hybrid •Merger Arbitrage
•Market Neutral
•Convertibles
•Dedicated short

Risk
Note: The investment styles listed above are samples of some themes we have pursued within each sub-strategy. They are not all-inclusive, nor
are they fixed in any way. The specific investment styles we use may vary at any given time.

8

Risk Profile

 The Fund’s three sub-strategies are managed according to different risk parameters.
Risk profiles in relation to common Morningstar categories are reflected below:

Risk Tolerance Scale (using Morningstar mutual fund categories 1=lowest, 10=highest)
1 2 3 4 5 6 7 8 9 10
US Large US Small Diversified
Short-Term Intermediate- Conservative Long-Term Moderate Foreign Large Technology
Blend Cap Blend Emerging
Bond Term Bond Allocation Bond Allocation Blend Equity Stocks
Equity Equity Markets

EAS Hybrid

EAS Concentrated Equity

EAS Global Cycle

The Fund’s
expected risk range


9

Fund Allocation – Dynamic and Flexible

 The Fund dynamically allocates among its sub-strategies based on our assessment of
the investment climate, market conditions and best risk/reward opportunities.

ALLOCATION RANGES AMONG THE FUND'S SUB-STRATEGIES SINCE INCEPTION:
9% - 41%
31% - 47%
3% - 14% Hybrid
Concentrated Equity
Global Cycle
3% - 23% Tactical/Options
15% - 24%
Cash

Note: The pie chart above reflects the allocation weightings that were applied under different market environments since the Fund’s
inception date of August 14, 2008. The Fund’s exact allocation will vary at any point in time given current market conditions and the
Advisor’s forward-looking analysis of the investment landscape.


10

Investment Philosophy
There is a bull in every market – our job is to find it

BULL MARKET FORECASTER
1ST QUARTER 2010

EXCELLENT GOOD FAIR POOR
Contrarian Global Bank Loan Equity-Income Agricultural Large Cap Balanced
Value Equity Infrastructure Funds India
(Dividends) Commodities Relative Value Funds

Convertible Equity Market- Non-Japan Asia Emerging Dedicated
Hedged Equity Brazil Equity Non-US Bonds
Arbitrage Neutral Equity Market Bonds Short Equity

Environmental Merger “Busted” Financial ROI Growth High-Quality
Equities Arbitrage Energy Stocks Oil
Convertibles Stocks Equity Bond Funds

Equity L/S Natural Gas Small-Midcap
China Global REITs Europe Equity S&P 500 Index US Dollar
Stocks

Frontier Convertible Tactical Asset Healthcare US T-bills (90-
Markets Gold Utility Stocks
Securities Allocation Stocks day)

Dedicated High Yield
Short Treasury US REITs Japan Equity “Vice” Equity
Bonds

Emerging Homebuilding Large Cap
Pharma Stocks Stocks Growth

Note: The above illustration is not a complete analysis and should not be considered investment advice. The positioning of the investment themes
and styles highlighted above reflect the Advisor’s outlook as of 12/31/09 and are subject to change at any time given current market conditions and
fluctuations.

11

Portfolio Construction Process

Top-down Macroeconomic Assessment
Fundamental analysis of critical factors that drive markets and
Theme
prices

Bottom-up Analysis
Investments
Identify the investment vehicles that best express the themes

Quantitative Analysis
Analyze all key metrics (trading turnover; expenses; risk stats Weightings
and tax implications)

Technical Analysis
Trade
Determine entry / exit points through charting analysis


12

Due Diligence Process

Assess market
Review written
factors and their
material &
impact on
interview
manager’s
managers
strategy

Monitor any
Continuous Analyze valuation
change in
Interactive ratios and
manager thinking
Process economic
and style
indicators
consistency

Identify change Evaluate bond
in macro rates and yield
environment curve


13

Team
Seasoned professionals with 90+ years collective experience

Robert A. Isbitts Allan M. Budelman Mathew J. MacEachern
Chief Investment Officer Managing Partner Portfolio Manager
•Co-Founded Emerald in 1998 •Joined Emerald in 1999 •Joined Emerald in 2004
•20+ years in the investment field •15+ years in the investment field •16+ years in the investment field
•DLJ, Morgan Stanley, Fiduciary Trust •JP Morgan, Bankers Trust, Chase Manhattan •Fidelity Investments, Leerink Swann &
•CFS Designation, 1997 •MBA, University of Miami Company, Inc.
•MBA, Rutgers University •BA, University of Maryland •Suffolk University
•BS, SUNY Albany

Keith D. Stoloff Michael N. Kahn
Research Analyst Technical Analyst
•Joined Emerald in 2007 •Joined Emerald 2008
•20+ years in the investment field •20+ years in the investment field
•Stoloff Advisory, Raymond James, Citicorp, •Barron’s Online Columnist since 2001
Great Western Securities •CMT designation, 2008
® ® ® ®
•CIMA , CIMC , CPWASM, CMFC , AAMS •MBA, New York University
•BS, University of South Florida •BA, Brandeis University


14

Fund Performance (net results through quarter-end 12/31/09)

(1)
Dec '09 3 month 6 month YTD 1Y 3Y 5Y Since Fund's Inception

EASAX (A shares) 0.42% 1.68% 6.97% 11.66% 11.66% N/A N/A -1.94%

EASIX (I shares) 0.41% 1.68% 7.07% 11.89% 11.89% N/A N/A -1.78%

S&P 500 TR 1.93% 6.04% 22.59% 26.46% 26.46% -5.63% 0.42% -7.87%

MSCI EAFE 1.44% 2.18% 22.07% 31.78% 31.78% -6.04% 3.54% -7.00%

(1) Inception date is August 14, 2008. Reflects net performance annualized through quarter-end 12/31/09.
The Fund offers 3 share classes (A, C and I). Maximum sales charge (load) as a percentage of offering price is 5.50% (A shares). See Prospectus for
details. The Fund's total annual operating expense ratio (gross) is 3.31% for the class A shares, 4.06% for the class C shares and 3.06% for the class I
shares. The Fund's investment adviser has contractually agreed to reduce its fees and/or absorb expenses of the Fund, at least until August 30, 2010, to
ensure that the net annual fund operating expenses (exclusive of any front-end or contingent deferred loads, taxes, leverage interest, brokerage commissions,
expenses incurred in connection with any merger or reorganization, dividend expense on securities sold short, expenses of investing in Underlying Funds, or
extraordinary expenses such as litigation) will not exceed 1.95% for class A shares, 2.70% for class C shares, and 1.70% for class I shares subject to
possible recoupment from the Fund in future years. Please review the Fund's prospectus for more detail on the expense waiver. Results shown reflect the
waiver, without which the results could have been lower. Expenses are typically reduced as total assets increase.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The
investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. To obtain
performance information current to the most recent month-end, please call 1-877-EAS-0757.

15

EASIX Growth Chart (inception through 12/31/09) *

EASIX Growth of $1,000 vs. S&P 500 TR

EASIX
* Inception date is August 14, 2008
S&P 500 TR


16

Why Our Fund?

• We employ a flexible and adaptive investment approach
• We do not subscribe to the rigid “style box” theory
• We aim to pursue the bull markets wherever they exist
• We use short positions in an attempt to make money, not just to hedge
• We diversify across multiple investment styles and market segments
• We strive to deliver a diversified and opportunistic allocation fund that
serves as a core holding for any investor, large or small

“A lot of times, people don’t know what they want
until you show it to them.” - Steve Jobs


17

Fund Facts – EAS Genesis Fund

• Share Classes: Class A, Class C and Class I
• Symbol: A – EASAX; C – EASYX; I – EASIX
• Minimum Investment: Classes A/C: $2,500; Class I: $500,000
• Blue Sky Registration: Class A – all 50 states including DC; Class C/I – varies by state
• Advisor Platforms(1): E*Trade, Fidelity, Foliofn, FTJ FundChoice, Pershing, Schwab, Scottrade,
SummitAlliance and TD Ameritrade
• Transfer Agent: Gemini Fund Services, LLC
• Distributor: Northern Lights Distributors, LLC
• Website: www.EASfunds.com
• Toll-free number: 1-877-EAS-0757

(1) Reflects platform availability as of December 2009. The Fund is also available on various broker-dealer
platforms. For specific information, please call 1-877-EAS-0757

An investor should consider the Fund’s investment objective, risks, charges and expenses carefully before investing.
This and other information about the EAS Genesis Fund is contained in the fund’s prospectus, which can be obtained
by calling 1-877-EAS-0757 (1-877-327-0757). Please read the prospectus carefully before investing. The Fund is distributed by
Northern Lights Distributors, LLC, member FINRA/SIPC.

18

Additional Information

An investor should consider the Fund’s investment objective, risks, charges and expenses carefully before
investing. This and other information about the EAS Genesis Fund is contained in the
Fund’s prospectus, which can be obtained by calling 1-877-EAS-0757 (1-877-327-0757).
Please read the prospectus carefully before investing. The Fund is distributed by Northern Lights Distributors,
LLC, member FINRA/SIPC.
Mutual Funds involve risk including possible loss of principal. The Fund may invest in small, less well-
known companies, which may be subject to more erratic market movements than large-cap stocks; foreign
securities, which are subject to currency fluctuations and political uncertainty; and derivative securities, which
may carry market, credit, and liquidity risks. These risks may result in greater share price volatility.
The Fund may invest in derivatives (Option Contracts). Even a small investment in options may give rise to
leverage risk, and can have a significant impact on the Fund’s performance. Derivatives are subject to credit
risk and liquidity risk.
The S&P 500 TR Index is an unmanaged composite of 500 large-capitalization companies. The index is
widely used by professional investors as a performance benchmark for large-cap stocks.
The MSCI EAFE is a stock market index of foreign stocks, from the perspective of a North American
investor. The index includes a selection of stocks from 21 developed markets, but excludes those form the U.S.
and Canada.
0083-NLD-1/14/2010

19


Medon A. Michaelides Jack F. Gonzalez
Managing Partner Director of Business Development

Leana C. Alu
Sales & Marketing Assistant

FUND MANAGER
EMERALD ASSET ADVISORS, LLC
www.EmeraldAssetAdvisors.com
MARKETING & CLIENT SERVICE
EMERALD ALLOCATION STRATEGIES, LLC
2843 Executive Park Drive
Weston, Florida 33331
Telephone: 954.385.9624
www.EASfunds.com
An investor should consider the Fund’s investment objective, risks, charges and expenses carefully before investing. This and other
information about the EAS Genesis Fund is contained in the fund’s prospectus, which can be obtained by calling 1-877-EAS-0757
(1-877-327-0757). Please read the prospectus carefully before investing. The Fund is distributed by Northern Lights Distributors, LLC,
member FINRA/SIPC.

20

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