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:

  1. market leadership and long-term histories of profitability;
  2. financially strong balance sheets;
  3. first-rate management teams that have an understandable and successful business strategy;
  4. a deep value price based on normal free cash flows, earnings and balance sheet values.

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.


Investment Team