- C. S. Lewis
Fortunato 2
Concentrated Value Strategy
Capital Appreciation, All Cap, Anywhere, Long Term Horizon
Objectives: Capital Appreciation, Preservation, Long Term Purchasing Power Protection
Strategy: Value, Deep Value, Long Only Equities, Non-Leveraged
Fortunato 2 seeks capital appreciation while limiting down-side market risk and protecting long term purchasing power. The fund strategy is actively managed and strives to hold between 5 to 20 equities, equity funds, or exchange traded funds (ETFs) which may be held for foreign securities.
Strategy: Fortunato 2 maintains a value or deep-value focus, seeking to outperform the S&P 500 in down markets while obtaining solid capital appreciation in up markets. The fund is focused on purchasing companies with strong free cash flow generation or the potential for strong and improving free cash flow that we feel are undervalued based on the the true ongoing long-term value of the business. A high rate of return on invested capital, or return on equity is another important consideration for long term out-performance. Fortunato 2 employs worst-case scenario models for targeted down side protection. Deep-value turnaround situations, out-of-favor industries or geographic regions, or reputationally damaged companies may be potential candidates.
The Fund also seek to invest in companies with a history of building significant value for shareholders over time, or said another way, shareholder-friendly management.
Portfolio Characteristics:
- Typically 5-20 equity holdings
- May be concentrated in one or more holdings (non-diversified)
- Companies may be located anywhere, but generally not more than 40% emerging markets
- Companies may be of any size, but generally there is a much larger percentage mid to large cap
- Fund may hold large percentages of assets in cash
Inception Date: 03/19/14
