Andrew Boord, Portfolio Manager of the FAM Small Cap Fund, discusses how he built a strong foundation for investment research while working with Howard Schilit, author of Financial Shenanigans. Fenimore Director of Sales, Bill McCartan, hosts this engaging conversation.
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.
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.
Dear Fellow Shareholder,
Last year at this time, our economy was caught off guard by a pandemic few of us saw coming.
This year, I think what is coming is pretty clear — and it is bright. Our team believes that the U.S. is heading into a strong economic recovery.
Are there risks? Of course. 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. We will keep these things in our peripheral vision, but our focus is on the positive signs we see ahead.
As always, Fenimore Asset Management (“Fenimore”) will continue to put our confidence only in businesses that meet our stringent quality criteria. We believe in owning shares in businesses that can maximize their growth opportunities, but also have the financial strength and intellectual capital to weather the types of challenges we have been through over the past 12 months.
Our goal every day is to protect and grow your wealth over the long term while providing service that is steeped in responsiveness, transparency, and integrity. We hope that you found this to be true during the very trying past year and we look forward to being alongside you for what we expect to be a much more enjoyable 2021.
I am not sure what we were thinking launching a mutual fund on April Fools’ Day, but 25 years later the FAM Dividend Focus Fund (FAMEX) has proven it is very serious about successful, long-term results. Congratulations to our portfolio managers — Paul Hogan, Tom Putnam, and Will Preston — and our entire research team on this milestone anniversary!
Paul and Tom have managed FAMEX since its inception. As Barron’s highlighted in a feature article about Paul Hogan and FAMEX, “The best money managers aren’t the ones who make no mistakes. They don’t exist. The best are ones who learn from their mistakes and improve as a result — and the only way to tell if you’ve found one is if a manager’s been around long enough to see the improvement.”(Barron’s, 12/4/2019, “This Fund Manager Has Beaten 99% of His Peers. How He Picks Winning Dividend Stocks.”)
Fenimore is launching a new website this spring. Our goal is to create an enhanced user experience for our investors and visitors.
Some of the new features include “News & Insights” prominently displayed on the home page and “Investor Education.” The web address is the same. We hope you find the site to be helpful, timely, and informational.
You can reach us with any questions at 800-932-3271, through the “Contact Us” section of our website, or at info@fenimoreasset.com. We also welcome you to meet with us via video conference or in our Albany or Cobleskill office.
Thank you for taking a few minutes to read our letter and thank you for the continued confidence you show in our team.
Sincerely,
CHIEF EXECUTIVE OFFICER
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.
Congratulations Deb!
