FAM Funds
Fenimore Private Client Group
Investment Advisors
About Fenimore

Investment Advisors


Investment Approach

Investment Process

Fenimore’s time-tested, disciplined, repeatable investment process involves intensive research and active monitoring of securities held. Our proprietary research process incorporates: creating and maintaining detailed models for each company we follow; analyzing financial statements; meeting with management and participating in quarterly conference calls; speaking with suppliers, customers, and competitors; monitoring the potential business impact of macroeconomic events; and sifting our investment ideas through the filters of our core investment criteria. 

Fenimore Filters: Four Core Investment Criteria

1. Quality Business

  • Understandable business model
  • Sustainable competitive advantages
  • High market share or industry leadership
  • Favorable long-term outlook

2. Financially Durable

  • Strong free cash flow generation
  • Low leverage and high coverage ratios
  • High returns on invested capital
  • Strong operating and profit margins

3. Proven Management

  • History of creating shareholder value
  • Astute capital allocation
  • Adept leadership
  • Honest, ethical, and experienced

4. Margin of Safety

  • Buy at a discount to our estimate of intrinsic value
  • Minimize effects of errors on long-term returns
  • Aim to maximize total return    
  • Reassess analyses and valuations continually

Buy Price Determination
(for individual securities)

  • Determine if a 10% to 12% annualized return rate can be achieved over five to six years
  • Discount expected future cash flows to determine present value
  • Apply a “worst-case” value baseline of no growth and discount at least 10%
  • Check against historical average multiples (price/earnings, price/cash flow, price/sales, price/book)

Sell Discipline
(for individual securities)

  • Valuation reaches a level where expected returns fall below the risk-free rate of return 
  • Economics of the business are deteriorating or competitive dynamics are changing
  • Investment no longer meets our criteria
  • Better risk/reward opportunities exist



All investing involves risk including the possible loss of principal. Before investing, carefully read the fund’s prospectus which includes investment objectives, risks, charges, expenses and other information about the fund. Please call us at 800-932-3271 or visit famfunds.com for a prospectus or summary prospectus.

Securities offered through Fenimore Securities, Inc., Member FINRA/SIPC and advisory services offered through Fenimore Asset Management, Inc.

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800.932.3271 / 384 North Grand Street, Cobleskill, NY 12043
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FAM Funds: Investment Approach Process - Investment Advisors
Our consistent and time-tested investment process involves extensive research, ensuring that companies meet our Four Core Investment Criteria.