The Fund's managers believe that the best way to produce substantial returns is to purchase securities on the basis of fundamental value, rather than short-term stock market expectations, and hold them until the full investment potential is achieved. This deep value price-driven equity style attempts to exploit market inefficiencies among stocks of small to mid-capitalization companies. Intense research is required to build the high level of knowledge and confidence necessary to realistically evaluate unpopular situations. Great attention is paid to the minimization of potential risk. The disciplined selection process is designed to minimize business and valuation risk by selecting companies with:
Seeking to purchase superior or potentially superior companies at low valuations requires either that the company or industry is out of favor or the value has not been recognized. Because our holdings generally originate from areas that are out of favor, our holding period of five years approximates the time it takes for them to realize their full earning and valuation potential.
Value investing does not protect against loss of principal and there is no assurance that the Fund will meet its objective.
FPA Capital Fund
Dan joined FPA in 2019. He serves as an portfolio manager for FPA. From 2005 to 2019, Dan was Senior Analyst and Trader at Akanthos Capital Management, a multi-strategy hedge fund manager. From 1999 to 2003, he was an equity research associate and an investment banking analyst at Deutsche Bank Securities. Dan earned a Bachelor’s Degree in Economics with Honors from California Institute of Technology and an MBA with Distinction from Kellogg School of Management. Dan is a CFA® Charterholder.
FPA Capital Fund