http://www.sec.gov/Archives/edgar/data/1552947/000158064215005557/fortunatus497s2.htm
497 1 fortunatus497s2.htm 497
FORTUNATUS PROTACTICAL NEW OPPORTUNITY FUND
Class A FPOAX
Class C FPOCX
Class I FPOIX
A Series of Two Roads Shared Trust
Supplement dated December 3, 2015
to the Prospectus dated November 24, 2014, as supplemented.
__________________________________________
The Board of Trustees of Two Roads Shared Trust (the “Trust”) has concluded that it is in the best interests of the Fortunatus Protactical New Opportunity Fund (the “Fund”) and its shareholders that the Fund cease operations. The Board has determined to close the Fund and redeem all outstanding shares no later than the close of business on December 31, 2015.
Effective immediately, the Fund will not accept any new investments. The Fund will begin liquidating its portfolio and will invest in cash or cash equivalents (such as money market funds) until all shares have been redeemed. The Fund will no longer pursue its stated investment objective once it begins liquidating its portfolio. Any capital gains will be distributed as soon as practicable to shareholders and reinvested in additional shares, unless you have previously requested payment in cash. Shares of the Fund are otherwise not available for purchase.
Prior to December 31, 2015, you may redeem your shares, including reinvested distributions, in accordance with the “How to Redeem Shares” section of the Fund’s Prospectus. Unless your investment in the Fund is through a tax-deferred retirement account, a redemption is subject to tax on any taxable gains. No redemption fees will be assessed on redemptions of Fund shares made after the date of this notice. Please refer to the “Tax Status, Dividends and Distributions” section in the Prospectus for general information. You may wish to consult your tax advisor about your particular situation.
ANY SHAREHOLDERS WHO HAVE NOT REDEEMED THEIR SHARES OF THE FUND PRIOR TO DECEMBER 31, 2015 WILL HAVE THEIR SHARES AUTOMATICALLY REDEEMED AS OF THAT DATE, AND PROCEEDS WILL BE SENT TO THE ADDRESS OF RECORD. IF YOU HAVE QUESTIONS OR NEED ASSISTANCE, PLEASE CONTACT YOUR FINANCIAL ADVISOR DIRECTLY OR THE FUND AT 1-844-798-3646.
________________________
This Supplement and the existing Prospectus and Statement of Additional Information (“SAI”) each dated November 24, 2014, provide relevant information for all shareholders and should be retained for future reference. The Prospectus and the SAI have been filed with the U.S Securities and Exchange Commission, are incorporated by reference, and can be obtained without charge by calling 1-844-798-3646.

IMHO, we are seriously at the point of overthinking this. "Forced Selling" is more of an issue when market is falling (which of course could always happen).
One can also make argument manager can then buy shares cheaper subsequently.
M* is showing 23% cash for FAIRX. The true cash stake might be larger and that can be used to "weather redemptions" from those investors who will not reinvest distributions (yours truly, as a rule)
Finally, two more things.
First, let's debate about the dangers of FAIRX more in terms of how Berkowitz invests. What were people expecting? That he will keep AIG stake at 40% forever? Money is made when investment is SOLD. Else it is paper gain. Just one reason I don't reinvest distributions - it is a healthy way to take gains and diversify across your holdings buy re-deploying in another fund.
Second, of all the faults one thinks Berkowitz is (I include infatuation with Fartiromo which has gotten my goat in the past), he is hardly an idiot. I would like to think he has planned this out a little bit more than what people are giving him credit for, If you purchased FAIRX in June 2015 and are now complaining, I have no sympathy for you.

Some additional considerations when a fund has a large capital gain distribution:
1. If folks are not reinvesting their distributions, that'll mean the fund has to sell to meet those "redemptions". If half of Fairholme's shareholders are not reinvesting, this means 15%+ of the fund is going to be redeemed. Forced selling is never a good thing for a fund.
2. If you like the fund and have a gain that's less then the distributed gain, you can sell just before the record date and buy back just after to minimize the time you are out. (No wash sales on gains.)
3. If you like the fund and have a taxable loss, you can still sell use the "sell just before and buy just after" strategy. You'll have a wash sale, but this simply means you start off where you were with an embedded loss - not a big problem. Of course, you can get out for 30 days and get the benefit of the loss this year.
4. Remember that a distribution is simply a pre-payment of taxes. You might pay more tax this year, but (because of your higher basis) you'll pay less in the future. I'd prefer to control when I pay my taxes, but pre-paying is not a disaster.
5. If a fund is distributing long-term capital gains, you can sell the fund after the distribution (in the same tax year) and end up with the same tax consequences. This might help if you were surprised by the distribution.
I hope these aren't too obvious and are helpful.
Personally, I think funds that have 30%+ distributions have several things going on and they are all headwinds. Giving them a break as they regroup might be a good strategy.

The apparent text section in question from the December 1 commentary is below and is opening of the paragraph just above "Briefly Noted", which is #17 in the content list.
I do agree with the two previous comments; that I also don't understand who to attribute this statement to.....as noted by @VintageFreak...."Who is Several of us?"; followed by @JohnChisum and his question/statement.
"Several of us have taken the position that we’re likely in the early stages of a bear market. The Wall Street Journal (12/01/2015) reports two troubling bits of economic data that might feed that concern: US corporate capital expenditures (capex) continue dropping and emerging market corporate debt defaults continue rising. For the first time in recent years, e.m. default rates exceed U.S. rates.
Briefly Noted . . ."
Regards,
Catch

HP Enteprise (HPE) article on the trends in Telecom. I like FSTCX and PRMTX to own exposure to these trends.
The six major disruptions that will drive the most change in Telecommunications by 2020 are:
Integration
Thingification
Mobility
Saturation
Security
Ascension
Let's visit each of these in turn, and take a look at the world of Telecommunications five years into the future.
https://hpematter.com/issue-no-4-spring-2015/content-barons-smart-dust-skynet-6-telecommunications-disruptions-2020

Several of us have taken the position that we’re likely in the early stages of a bear market. The Wall Street Journal (12/01/2015) reports two troubling bits of economic data that might feed that concern: US corporate capital expenditures (capex) continue dropping and emerging market corporate debt defaults continue rising. For the first time in recent years, e.m. default rates exceed U.S. rates.
Who is Several of us?

Uhhh? An alternative for prime time ??
"...fans soon may be able to invest in wide receiver Alshon Jeffery's future income on the Nasdaq Capital Market, if the company that bought a share of his earnings gets its way.
Fantex, an online marketplace that lets investors buy and sell stock in a professional athlete's brand value, today filed an S-1 with the Securities and Exchange Commission proposing an initial public offering of a single security tied to contracts it has with 10 pro athletes.
November 30, 2015
Alshon Jeffery's earnings may be heading to Nasdaq
DANNY ECKER ON SPORTS
"Our six completed IPOs paved the way to unlocking an asset class previously closed to the capital markets,” Fantex CEO Buck French said in a statement. "By bundling multiple tracking stocks into a single, Nasdaq-listed security, we believe Fantex is providing the next evolution for those looking to invest in the business of professional sports."
http://www.chicagobusiness.com/article/20151130/BLOGS04/151139989/alshon-jefferys-earnings-may-be-heading-to-nasdaq

Red ink swept across the major asset classes in November, with one exception: US equities
By James Picerno | Dec 1, 2015 at 06:24 am EST
The Capital Spectator
Major Asset Classes | November 2015 | Performance Review
Red ink swept across the major asset classes in November, with one exception: US equities. The Russell 3000 Index edged up 0.6% last month. Otherwise, losses prevailed, delivering a negative counterpoint to October’s generally bullish profile.
As for November, commodities were the big loser… again. The broadly defined Bloomberg Commodity Index fell 7.3% last month—the fifth consecutive monthly loss and the biggest dip since July.

http://www.capitalspectator.com/major-asset-classes-november-2015-performance-review/
U.S. Gasoline Prices Decline; Crude Oil Nudges Up
BY TOM MOELLER DECEMBER 1, 2015
http://www.haver.com/comment/comment.html?c=151201A.html

You can do a partial sale. Pick the shares that cost the most, sell those, retain the rest. Then you can repurchase as much or as little as you want by adding to your open account.
According to the prospectus you can add as little as $1K (min for a new account is $10K).
If you've got a lot of losses, it may be better not to offset all of them with gains. If you've got losses left over, you can use up to $3K of those extra losses to reduce ordinary income - a more valuable use of capital losses.

Too complicated. I always do fifo and my gain on earlier shares is 30℅. Minimum is 25k I thought. Just saying everyone's situation is different, and people have enough excuses to sell fairs and don't need another one.

You can do a partial sale. Pick the shares that cost the most, sell those, retain the rest. Then you can repurchase as much or as little as you want by adding to your open account.
According to the prospectus you can add as little as $1K (min for a new account is $10K).
If you've got a lot of losses, it may be better not to offset all of them with gains. If you've got losses left over, you can use up to $3K of those extra losses to reduce ordinary income - a more valuable use of capital losses.

The hyper-concentrated portfolio can make this choice easy. Would you buy AIG? BAC?

Neither would Berkowitz - he wouldn't even hold (let alone buy) AIG, which is why the fund is paying out so much in cap gains. He's also dumped most of BAC. It will be interesting to see how his turnover ratio jumps for 2015.
As for the other four companies (SHLD, JOE, FNMA, FMCC), well ...
Baron's: Berkowitz's AIG Sale To Result In Huge Taxable Distribution
Bloomberg: Berkowitz's Fairholme Sold Almost All Its AIG Shares in Quarter; Also unloaded more than 60 percent of Bank of America position.

If you're going to own it a Roth IRA account seems like the best place for it. Fairholme often hands out large capital gains.

I just checked. I have a capital gain of about $5,000 if I sell the shares vs. a distribution of about $19,000 if I keep them. It would simply be an incorrect decision to keep them. So I'm out at today's closing price. I'll buy FAIRX back, but the position will be smaller than the one I sold today.

While this game is usually played with funds having large distributions, it can also prove useful for a fund with slow, virtually inexorable declines in NAV, viz. RPHYX. Not to mention other cash-substitute funds. For example, ZEOIX has spent nearly its whole life except its first year above $10. It's now at $9.90.
It turns out that because this year has been somewhat flat, many funds (even with more reasonable size distributions) have shares whose NAVs will drop below purchase price after distribution. This is where specific share identification becomes so handy. You can sell just those shares that you purchased (or got via reinvestment) in the last couple of years, and recognize their losses without also recognizing gains on the other shares.

Fairholme has declared an upcoming distribution equaling over 1/3 of the share value. It appears to me that for those who have purchased FAIRX over the past 5 years or so in a taxable account, they would save on taxes by selling the shares now and paying taxes on their capital gains which would be less, possibly significantly less than paying taxes on the $12 distribution. This is true especially because their tax basis includes distributions from prior years. (Then they can just buy the shares right back after the distribution if that's what they want to do.)
It seems a real possibility that just about everybody is going to realize this same thing and the assets of FAIRX are going to be significantly depleted. Meeting redemptions could possibly even put pressure on the market price of the fund's holdings, specifically SHLD.
Of course when the investor sees that pile of real cash money in his account, he may or may not decide to follow through on the original plan of investing all of it back into the Fairholme Fund.

There are plenty of closed-end bond funds trading at 10-15% discounts and paying out 9-12% distributions. They're usually either global bond funds, emerging market bonds or junk bonds. They'll usually use leverage, tend to be owned by individuals rather than institutions, and are often subject to year-end tax selling (I'd guess that this will be the case this year, but I'll emphasize that word 'guess').
One thing that I'd be careful about is that the particular fund is only paying out the income that it's earning. Many of them return your capital to you in order to pay out a large distribution. I'm looking at DSL (another Doubleline cef), BGH (short-term junk) and the AllianceBernstein Global Income cef whatever its ticker symbol is (AWF?). They seem to fit the high distribution, high discount criteria while paying out only income earned. Good management teams, too, I think. Personally I'll wait until January if I do buy.

I'm in the same boat. Again, this is one of those funds that had so much going for it -- long term outperformance, manager with major skin in the game, small asset base, great investor-friendly stewardship, below average fees -- that its failure basically since 2008 has made me question whether trying to find outperformance through active management isn't a fool's errand.
It's also made me think that @junkster has the right idea with his version of momentum fund investing, though I don't think I have the tools to do it myself.
I'm planning to hold BRUSX a while longer, until I sense / guess that the market is nearing a top. I don't want to take the capital gains hit until I'm at a moment when I want to dial down my equity allocation anyway.
Maybe by then it will shine again and I'll end up sticking to it.

http://www.sec.gov/Archives/edgar/data/793769/000119312515389490/d39381d497.htm
497 1 d39381d497.htm HARBOR FUNDS
Harbor Fixed Income Funds
Supplement to Prospectus dated March 1, 2015
Harbor High-Yield Bond Fund
The following information regarding Shenkman Capital Management, Inc., the subadviser for Harbor High-Yield Bond Fund, will be changing effective January 1, 2016:
Mark Flanagan, one of the six co-portfolio managers for Harbor High-Yield Bond Fund, will be retiring from Shenkman Capital Management, Inc. at the end of 2015. Mark Shenkman, Eric Dobbin, Justin Slatky, Steven Schweitzer and Robert Kricheff will continue to serve as co-portfolio managers for the Fund following Mr. Flanagan’s retirement using the same team-based approach with Mr. Dobbin remaining the lead portfolio manager of the Fund.
November 27, 2015
Harbor Emerging Markets Debt Fund
Harbor Funds’ Board of Trustees has determined to liquidate and dissolve Harbor Emerging Markets Debt Fund. The liquidation of the Fund is expected to occur on April 29, 2015. The liquidation proceeds will be distributed to any remaining shareholders of the Fund on the liquidation date.
Shareholders may exchange shares of the Fund for another Harbor fund, or redeem shares out of the Fund, in accordance with Harbor’s exchange and redemption policies as set forth in the Fund’s prospectus, until the date of the Fund’s liquidation.
Because the Fund will be liquidating, effective immediately a redemption fee will no longer be applied to the redemption of any shares out of the Fund.
In order to ready the Fund for liquidation, the Fund’s portfolio of investments will be transitioned prior to the planned liquidation date to one that consists of all or substantially all cash, cash equivalents and debt securities with remaining maturities of less than one year. As a result, shareholders should no longer expect that the Fund will seek to achieve its investment objective of maximizing total return.
Because the Fund will be liquidating, the Fund is now closed to new investors. The Fund will no longer accept additional investments from existing shareholders beginning on April 22, 2015.
March 6, 2015

I don't see most taxable bond funds as yielding enough (with sufficient stability) to be particularly useful these days for income. For income, it seems the idea is to generate a steady reliable cash flow without eating into principal. That would limit me to A grade or better, and (on average) intermediate term bonds.
BBB may be "investment grade" but there's a reason why it's not called A-. There's a significant jump in risk between letters. Intermediate term because long bonds don't offer enough of an increase in yield to be worth the risk - especially in a low (and likely rising) interest rate environment. Short term bonds simply pay too little.
So one winds up with funds like Fidelity Investment Grade Bond (FBNDX). SEC yield a tad under 3%. (I use SEC yield because it incorporates both the coupon payments and the decline, if any, in principal; that's something you need to watch for in a longer term investment.)
Compare that with a strategy of combining a MMA (1%) with broadly diversified equity funds. The latter should return a couple of percent above bonds (expecting 5%-6% over time is not unreasonable). This approach comes with more volatility, which is why one uses the MMA for cash - this needs to be much larger than the proverbial emergency fund. Over time, as the equity market does well, one sells shares and moves to cash. When the equity market swoons, one draws from the MMA.
Plusses are an expected higher average rate of return than a bond portfolio, and lower taxes (the dividends and cap gains from the equity funds will be taxed less than the bond fund alternative). Just as you wrote. Minuses are that this requires closer monitoring and a tolerance for greater volatility on paper.
You can throw in some munis to give more stability and another source of income in case you're queasy about selling lots of equity at one time (when the market is up, to replenish the MMA).
As interest rates go up, one might make more use of bond funds for income, but I don't see them helping much right now. (Multisector, junk, etc. are different - but one invests in them much as one invests in equity - for total return and diversification - and this is why they wind up in nontaxable accounts.)
In short, one can make a barbell out of the "three bucket" strategy, discarding the middle bucket as dead weight.

>>>Right. I just never think about munis. No tax advantage for me.<<<
I trade them in my IRA as well as my taxable. Last year some were up in the 19% range, this year only 4%. Tax advantage or no tax advantage it increases your nest egg at those % gains.