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.