It’s vital to be proactive and have a holistic view of your estate before it becomes an urgent matter. Topics discussed include life events that prompt the priority of planning and how often you should review your plan.
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This video is part of a comprehensive program — “Estate Planning: Plan Today. Enjoy Tomorrow.”
This conversation highlights how to get started and find the right attorney, the types of attorneys to consider, and what to expect as you move forward with your estate plan.
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This video is part of a comprehensive program — “Estate Planning: Plan Today. Enjoy Tomorrow.”
Anne Putnam, CEO, is honored to join Walter Thorne, Market President and Publisher of the Albany Business Review, for the Albany Executive Insights series, presented in partnership with the Albany Business Review. In Part 2 of this exclusive interview, Anne speaks to key differentiators as well as her vision, which includes:
This sponsored interview about the Firm’s advisory services has been published by The Albany Business Review (“ABR”), a non-advisory client that provides various marketing services to Fenimore. Cash compensation was given in exchange for the publishing of this sponsored content. Due to Fenimore’s relationship with ABR, material conflicts of interest include but are not limited to a financial incentive to promote this sponsored interview. These compensated endorsements are intended to objectively showcase the Firm and its services; however, it is important to understand that compensation may have influenced the content of this article therefore we encourage clients and prospective clients to independently research and assess the Firm’s investment offerings, taking into consideration their unique financial goals, risk tolerance, and investment preferences before making any investment decisions.
Portfolio Manager William Preston, CFA®, FAM Dividend Focus Fund, discusses how the strategy is distinct, the fund’s performance, and a portfolio holding.
This excerpt is from our October 2023 FAM Funds Annual Investor Meeting.
Drew Wilson, CFA®, Portfolio Manager of the FAM Value Fund, presents a fund strategy overview, performance update, and stock story.
This excerpt is from our October 2023 FAM Funds Annual Investor Meeting.
FAM Small Cap Fund Portfolio Manager Andrew Boord provides a strategy overview, performance update, and stock story.
This excerpt is from our October 2023 FAM Funds Annual Investor Meeting.
Anne Putnam, CEO, is honored to join Walter Thorne, Market President and Publisher of the Albany Business Review, for the Albany Executive Insights series, presented in partnership with the Albany Business Review. In Part 1 of this exclusive interview, Anne speaks to what differentiates Fenimore Asset Management as it approaches its 50th anniversary, including these key elements.
“We will remain committed to service and that is the reason for the expansion in the Capital Region, because we want to be where investors are.”
— Anne Putnam, CEO
This sponsored interview about the Firm’s advisory services has been published by The Albany Business Review (“ABR”), a non-advisory client that provides various marketing services to Fenimore. Cash compensation was given in exchange for the publishing of this sponsored content. Due to Fenimore’s relationship with ABR, material conflicts of interest include but are not limited to a financial incentive to promote this sponsored interview. These compensated endorsements are intended to objectively showcase the Firm and its services; however, it is important to understand that compensation may have influenced the content of this article therefore we encourage clients and prospective clients to independently research and assess the Firm’s investment offerings, taking into consideration their unique financial goals, risk tolerance, and investment preferences before making any investment decisions.
Dear Fellow Investor,
Earlier this year, an executive of a successful business greeted me by asking, “When’s the market going up?”
At first, I thought he was joking. The stock market was up and had been for some time. Then I realized: he was being genuine. The negative news headlines — high interest rates, inflation running rampant, a potential recession on the way — have dominated the financial landscape to the point that many people are not watching the market or even looking at their quarterly statements for fear of what they think they will see. The market is still up (as of 9/30/2023).
SHIRKING THE WAVE, SEEKING LONG-TERM VALUE
Long-term asset growth for our investors has been one of Fenimore’s defining goals since our founding in 1974. The effects we are seeing today come from the seeds we planted — and the discipline we exercised — two and three years ago. That’s when we avoided buying so-called “pandemic winners,” such as ultra-hot businesses that we viewed as speculative, were thriving on low interest rates, or were saddled with much debt. Instead, our team held firmly to our steadfast investment philosophy that has guided us for nearly a half-century.
For example, many people hopped on the technology wave during COVID. One stock went from a $100 per share in 2019 to nearly $600 during 2020’s last quarter. Today, it’s right back to where it started. The wave crashed. For this specific firm, there was simply no long-term value in our view — and we’re looking to create long-term value for our investors.
OUR MARKET-TESTED APPROACH
Fenimore seeks to invest in quality small to mid-size companies that are available at a price below what we estimate to be their intrinsic value. We define “quality” as companies that have:
A STATEMENT OF CONFIDENCE
As we head into the fourth quarter, our research team continues to hit the road and phone to talk with the companies we own and those we’re considering buying — gathering insights into their businesses, fact-checking our instincts, and seeking to ensure that the investments we’re making on your behalf meet Fenimore’s stringent criteria.
In just the week before I’m writing this, we visited with five companies including a swimming pool supplier, software developer, and an electronic parts manufacturer. Each time we came away with strengthened confidence in their long-term potential and the role they play in delivering value to our investors.
We are optimistic that inflation could be under control next year, and economic growth and business fundamentals will be the main topics of discussion. Meanwhile, our analysts are avoiding industries that are sensitive to interest rates and susceptible to credit losses. We are planting quality seeds that we believe should produce value over time.
OUR NEW CEO
As Fenimore looks ahead to an exciting future, it’s my pleasure to congratulate Anne Putnam on her promotion to Chief Executive Officer (CEO), effective October 1, 2023.
A second-generation Fenimore leader and founding family member, Anne grew up in the firm her father, Tom Putnam, founded. After earning her professional credentials outside our walls, she returned 17 years ago to help us chart our future. Anne has contributed significantly to Fenimore’s growth, most recently as Senior Vice President since 2017. She has played a key role in maintaining and enhancing our strategic vision and value investment philosophy, as well as our enduring commitment to community philanthropy.
What’s next for me? After serving in the dual roles of CEO and Chief Investment Officer (CIO) since 2019, I am pleased to focus full time on my CIO role and the work I love most — guiding the firm’s investment management strategies and leading our talented research team as we seek quality companies that we believe should provide long-term value for our investors.
LET’S TALK
Any time you have questions or want to talk about your investments, please visit us in either our Cobleskill or Albany office, call 800-932-3271, or email us at info@fenimoreasset.com.
Best wishes for a wonderful conclusion to 2023 and thank you for your confidence.
Sincerely,
John D. Fox, CFA®
CHIEF INVESTMENT OFFICER
As we approach the middle of the year, we thought it would be appropriate to provide an update of what we are seeing, hearing, and thinking regarding the economy and your portfolios.
Following the close of Q1, our in-house investment research team has been busy parsing through 100+ earnings calls and transcripts from the companies they follow. No doubt, we did hear signs of moderation, particularly towards the end of the quarter. This moderation is being felt across a wide range of industries including industrial distribution, technology hardware, healthcare analytical equipment, and consumer facing businesses—particularly those impacted by higher interest rates like used autos and homebuilding supplies. In some cases, moderation means that businesses in these industries will grow at a slower rate, while in other cases certain businesses may see a decline compared to the high levels of activity achieved in 2021 and 2022.
Marc Roberts, CFA®
Portfolio Manager, FAM Value Fund
Encouragingly, despite signs of moderation, we heard an equal amount about resiliency. Consumer spending and the labor market has remained robust, despite the pace of interest rate increases aimed at combating higher levels of inflation. Resiliency was felt across several industries including insurance brokerage, health care procedures, travel, and general industrial. For some businesses, positive results are being driven by continued solid demand, while others are benefiting more from latent pricing power. Our focus on investing in businesses that possess differentiated attributes has helped with navigating this dynamic environment and we’ve been pleased with our companies ability to get the appropriate value for the products and services they provide.
Resiliency has not only been present in the economy, but in the stock market as well. Despite news headlines and concerns at the macroeconomic level, the broader market has achieved gains year to date.
LOOKING AHEAD
We continue to monitor the ongoing developments in the banking and commercial real estate industries (read our latest banking update). Tightening credit standards and greater risk aversion may have been a culprit behind the moderation that corporate America began feeling late in the quarter and could serve to further moderate activity going forward.
At Fenimore, we know that we can’t predict potential macro eventuality. However, we continue to have high conviction in our ability to mitigate risk, and our approach to selecting quality, resilient businesses. We remain confident that over the long-term, our businesses and the leadership teams behind them can drive long-term value creation, that is expected to benefit our collective portfolios.
STAY CONNECTED
If you have any questions about your investments, you can call 800-721-5391, email us at info@fenimoreasset.com, or stop by either our Albany or Cobleskill location.
Thank you for your ongoing trust and we hope you have a safe and enjoyable summer.
Dear Fellow Shareholder,
As we head into the second quarter of 2023, the investment conversation in the news media and on Wall Street continues to fixate on the following questions:
How high are interest rates going to rise? What did the Federal Reserve say today? Are we entering a recession? Are we already in one? When will inflation recede? How long is this all going to last?
Additionally, questions are now swirling regarding the two banks that collapsed and the banking industry.
We hope the email our team sent to you in mid-March on this topic was helpful. The main points we stressed were how we personally know our bank holdings and how confident we are in them.
Legendary investor Warren Buffett once said, “What you really want to do in investments is figure out what’s important and knowable. If it’s unimportant or unknowable, you forget about it.”
Interest rates, inflation, and other economic and stock market influencers are certainly important, but they are “unknowable” because they are unpredictable and beyond our control. At Fenimore, we study them and keep them in our peripheral vision, but our focus is on what we know — the strengths, weaknesses, opportunities, and threats of the businesses we invest in on your behalf.
Instead of prognostication, our time is much better spent striving to ensure that your, and our, money is invested in what we believe are quality companies. These enterprises should be built to weather these turbulent times, and potentially become stronger, while emerging from the clouds poised for sustained growth and attractive returns.
KNOWING WHAT WE OWN
How do we know our businesses? By meeting regularly with their leadership teams, visiting their facilities, talking to their customers and competitors, analyzing their financials, and building a deep knowledge in the industries in which they compete. From Fenimore’s perspective, the most valuable information we garner for assessing the quality characteristics and long-term prospects of our holdings comes from our sessions with management.
Here’s a notable example. In March, our research analysts participated in a virtual meeting with an insurance holding. They impressed us with their presentation on how they use data collected from cell phones to learn about people’s driving behavior and then use that data to price insurance appropriately. We came away saying, “Wow! This company is so far ahead of their competition when it comes to data and insights, and we believe it’s so well-run, that we will continue to hold their stock for the long term.” Without a doubt, the 90 minutes we spent with their leadership was much more valuable than spending 90 minutes trying to guess whether inflation will go up or down.
LOOKING FOR STRONG OPPORTUNITIES
From a macro standpoint, we are closely watching the impacts of higher interest rates on certain sectors of the economy, such as banking and housing, and applying greater scrutiny to our holdings in those areas.
For instance, we’re extremely impressed with the steps taken by one of our holdings in the home fixtures and building materials industry to prepare for and adapt to the slowdown in demand. We’re confident in their long-term prospects and see them as a quality holding.
Overall, insurance, industrial, technology, and travel businesses are doing well. Our research analysts are looking for opportunities to increase our presence in these industries if the right companies and prices present themselves.
LOOKING AHEAD
We will stick to our playbook and focus most of our time on what is important and knowable — the businesses behind your investments. Fenimore’s team will continue to hit the road and conduct firsthand research. From the beginning of January through March, our analysts have already had 22 face-to-face meetings with both existing and prospective holdings as well as four virtual discussions.
STAY IN TOUCH
Our associates are working diligently as we strive to protect and grow your capital by investing in what we consider to be quality companies that can expand and produce attractive returns over time. Please visit us in either our Cobleskill or Albany office, call 800-932-3271 or email us at info@fenimoreasset.com if you have questions or would like to talk about your investments. Thank you for your trust and friendship.
Sincerely,
John D. Fox, CFA
CHIEF EXECUTIVE OFFICER