Tom Putnam Discusses Succession Planning with the Albany Business Review
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Tom Putnam shared his insights and changes to his role in the Albany Business Review article, “The next step in Fenimore’s succession plan, decades in the making.”
As the next step in Fenimore’s succession plan, Tom mentioned that he is stepping back from his role as Portfolio Manager in Fenimore’s three mutual funds at the end of 2021. He will continue to serve as Executive Chairman and help manage the firm’s mission, vision, and culture.
Tom began to create the firm’s succession plan in 1993.”Our outside board urged me to think of succession,” Mr. Putnam said. “It’s been going on for a long period of time, our senior management teams and board have been discussing that, and it’s gone smoothly.”
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Both the long tenure of the other Portfolio Managers and their consistent investment approach play integral roles in the succession plan. “I always had a philosophy that the way to be successful is to find talented people who are curious and have intellectual honesty and can grow,” Tom said. “If you find those people and they have those qualities, you give them responsibilities and let them run with it.”
Things change, but Tom wanted to reiterate what will remain the same – the continued goal of investing for long-term success.
“I get letters all the time, ‘We’ve been with you for 20 years and if you weren’t fostering our assets the way you have, we wouldn’t be able to have the second home, or send our kids to college, or generate funds for our grandchildren,'” he added. “That’s the rewarding part of our businesses and why we do it.”
Marc Roberts Named Portfolio Manager of Fenimore Mutual Fund
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Cobleskill, N.Y. (October 12, 2021) – Fenimore Asset Management, an independent, Capital Region-based investment advisory firm and manager of the FAM Funds family of mutual funds, has named Marc Roberts as a Portfolio Manager of the FAM Value Fund.
Established in 1987, the FAM Value Fund is one of three mutual funds that Fenimore manages. The FAM Value Fund, with $1.5 billion in assets under management as of September 30, 2021, seeks to maximize long-term return on capital by investing in quality companies with growing cash profits, strong balance sheets, and exceptional management.
Mr. Roberts joined Fenimore in 2007 as an Investment Research Analyst and became a Portfolio Manager of the FAM Small Cap Fund in 2012.
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In 2016, he relocated to Chicago and continued his career in the investment industry before returning to Fenimore in March 2020. Mr. Roberts holds the Chartered Financial Analyst (CFA®) designation and focuses on understanding and evaluating quality businesses including, but not limited to, those in the core bank processing and payments, connectors and sensors, and specialty insurance industries. He earned a bachelor’s degree in Finance from Siena College.
“Marc made a very welcome return to the Fenimore family last year and quickly reminded us of his investment research acumen and commitment to our investment philosophy,” said Fenimore CEO John Fox. “He has demonstrated tremendous value for our investors in the past as a Portfolio Manager and we look forward to seeing his talents at work for our FAM Value Fund shareholders in the years to come.”
Mr. Roberts joins Chief Executive Officer John Fox and Portfolio Manager Drew Wilson in managing the FAM Value Fund. Fenimore’s Founder & Executive Chairman Tom Putnam has announced that he will transition away from his Portfolio Manager role in all three of the FAM Funds at the end of 2021 to concentrate fully on his role as Executive Chairman. Mr. Putnam actively guides the firm’s overall investment-research and service-focused culture.
Founded by Mr. Putnam in 1974, Fenimore Asset Management is an independent, nationally recognized investment advisor with more than $4.2 billion in assets under management, as of September 30, 2021, through its Cobleskill and Albany offices. Fenimore offers both customized separately managed accounts and a family of mutual funds that can be used for retirement and other long-term investment planning. The firm’s team of professionals prides itself on investing in carefully selected quality businesses and providing its investors with highly personalized investment services.
The Fenimore team was excited to kickoff summer by planting flowers outside the Cobleskill Regional Hospital. We sincerely hope the beautiful flowers and bright colors serve as a welcome sight for patients, visitors, and our healthcare workers.
John Fox and his insights on investing were highlighted in the Albany Business Review’s article, “Fenimore CEO’s 3 biggest lessons from the year since the pandemic stock market crash.”
March 23 marks one year since the stock market crashed and bottomed. Compared to 2020, John says 2021 looks favorable, “The stock market is capitalized on corporate profits. If businesses are doing well, prices go up and stock prices tend to follow earnings over time.”
John shared what he believes are the key lessons from the past year:
“Stick to the Basics” — The fallout from the pandemic reinforced Fenimore’s focus on quality companies that are financially durable and generate cash. By investing in quality businesses, you can be ready for a crash.
“In a downturn, those tend to do better than the market,” John stated.
“Don’t Pretend to Know How the Market Will Respond” — “Thinking back to February last year, if I said we’d shut down the economy and have the worst quarter of the economy since the Depression and have a lot of illness and fatalities all around the world, your reaction would be to get out of stocks completely and wait for a better time,” John said.
“All of those things with the virus happened and the economy and the market has done well.”
“The Economy Is Not the Stock Market” — “Last May, where the economy was very tough, we were still mostly closed down and the stock market was two months into its rally.”
“The stock market is not the economy. The stock market saw the government was putting a bridge under all of us to get through the other side and the market was anticipating where we are today, where things are getting better, we’re getting vaccines and the economy is growing and there’s still a good amount of stimulus.”
The article ended with John reinforcing that, of course, there are risks. It will be some time before we know the true cost consequences of the federal stimulus spending including whether it leads to a period of inflation and higher interest rates. Fenimore’s Investment Research team will be monitoring these risks while staying focused on the positive signs ahead.
Fenimore Asset Management, an independent, Capital Region-based investment advisory firm and manager of the FAM Funds family of mutual funds, is celebrating the 25th Anniversary of the establishment of its FAM Dividend Focus Fund (FAMEX).
When Fenimore Founder Tom Putnam and Portfolio Manager Paul Hogan mapped out the investment strategy for the firm’s second mutual fund a quarter century ago, they focused on mid-cap companies with a history of paying growing dividends. Their goal was laser-focused — an investment vehicle that could provide downside protection in turbulent times and upside potential for long-term capital appreciation.
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FAMEX has done just that. Since its launch on April 1, 1996, FAMEX has weathered the dot-com bubble, the Global Financial Crisis, and the COVID-related market plunge and volatility. Over its life, FAMEX has achieved solid long-term performance with a positive return on investment in 20 of its 25 years.
Additionally, as of February 28, 2021, FAMEX held the top 5-Star Overall Morningstar RatingTM based on performance returns and risk-adjusted returns. (Morningstar, an independent investment research firm, currently follows 407 mutual funds in its Mid-Cap Blend Category. The Morningstar RatingTM is a quantitative assessment of a fund’s past performance — both return and risk — as measured from 1 to 5 stars. It uses focused comparison groups to better measure fund manager skill. As always, the Morningstar RatingTM is intended for use as the first step in the fund evaluation process. A high rating alone is not a sufficient basis for investment decisions.)
April 1 also marks the silver anniversary of Mr. Hogan’s and Mr. Putnam’s joint management of the fund — a rarity in an industry where the average manager tenure is approximately five years. In May 2020, the two were joined in managing FAMEX by Portfolio Manager William Preston.
“The FAM Dividend Focus Fund exemplifies Fenimore’s nearly half-century commitment to investing in quality businesses that have strong leadership and the proven ability to navigate all types of economic and market cycles,” Mr. Hogan said. “We are proud of the Fund’s performance over its first 25 years and look forward to what we are able to accomplish for our shareholders in the years ahead.”
“Fenimore’s team is truly grateful for the strong local support and ownership of the Dividend Focus Fund as well as our national recognition and investors across the country,” Mr. Hogan added. “We are invested alongside our shareholders and truly care about their financial and life goals.”
“The investment philosophy remains strong: Invest in mid-cap companies with the potential to not only grow their earnings but grow the dividends they return to their shareholders,” said Mr. Preston. “As we like to say, a growing dividend can be a good indicator of the health of a company and its potential for future success.”
Founded in Cobleskill in 1974, Fenimore Asset Management is an independent, nationally recognized investment advisor with more than $3.7 billion in assets under management (as of 12/31/2020) through its Cobleskill and Albany offices. Fenimore offers both separately managed accounts and a family of mutual funds that can be used for retirement and other long-term investment planning. The firm’s team of professionals prides itself on investing in carefully selected quality businesses and providing its investors with highly personalized investment services.
President Debra Pollard: 2021 Hall of Fame Inductee
Fenimore’s headquarters is located near the National Baseball Hall of Fame in Cooperstown, NY. But who knew we’d have our own Hall of Famer right here?
Fenimore President Debra Pollard has been inducted into the Albany Business Review’s “40 Under 40 Hall of Fame.” This is the third year the Business Review has inducted select past recipients of its annual 40 Under 40 awards. The Hall of Fame honors “the professionals who’ve made the biggest impact since earning the award.”
Deb joined our team 29 years ago as a marketing associate — our 10th employee — and moved steadily up our leadership ranks, becoming president in 2016. A visionary thinker, she drives our long-term strategic planning and focuses every day on delivering the greatest possible service and value to our investors.
It’s been one year since this historic plunge. How did we navigate the crash? Learn from Fenimore’s distinctive, stress-tested investment approach.
Please join us as Fenimore’s CEO John Fox, President Debra Pollard, and Portfolio Managers Kevin Gioia and Will Preston discuss these topics with University at Albany’s Dr. David Smith.
Discover:
Howquality businesses can be resilient and support an investment portfolio during downturns.
What we heard from the leaders of our holdings as they managed the pandemic.
How investors reacted and what we can learn from this experience.
Zoom instructions will be emailed prior to the meeting.
Since 1974, Fenimore’s Investment Research Team has focused on quality companies. Please join us as they share how this approach helped us navigate 2020’s unforgettable events.
Learn why quality matters and how the funds performed
Participate in a Q&A Session
Zoom instructions will be emailed prior to the meeting
Our goal is to provide you with an exceptional service experience. To help us do so, we are pleased to announce that Ultimus Fund Solutions, LLC became the Co-Transfer Agent for FAM Funds effective September 14, 2020.
What this means is that our FAM Funds Shareholder Services Team will be able to devote more time to serving you, our shareholders. This includes in-person meetings, phone and Zoom conversations, and other communications.
FAM Funds Shareholder Services will continue to handle all shareholder calls and communications.
Ultimus Fund Solutions has been managing our fund accounting for three years and is now handling all back-office operations.
