FAM Funds
Fenimore Private Client Group
Investment Advisors
About Fenimore

Investment Advisors

 

Investment Approach

Managing Risk 

Market Risk
Fenimore defines risk as permanent loss of capital, not price volatility — price volatility provides discounted opportunities

  • Quality: invest in high-quality businesses with conservative capital structures and proven leadership
  • Valuation: invest when stock price is at a considerable discount to our assessment of intrinsic value in order to create a margin of safety

Financial Risk
Limit our holdings to quality businesses with sound balance sheets, high profitability (high ROE/ROIC and profit margins), strong free cash flow generation, and manageable debt

  • Active Management: continually monitor appropriate measures such as P/E, P/B, P/CF, ROE/ROIC, Total Debt/Equity, and EBITDA Margin applicable to each business

Operational Risk
Focusing on adept leaders with a history of creating shareholder value, as well as our frequent contact with management, helps reduce negative surprises

  • Transparency: invest in American companies with appropriate global revenue to capture upside potential of international markets while having access to management

800.932.3271 / 384 North Grand Street, Cobleskill, NY 12043
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FAM Funds: Independent Advisors - Managing Risk
We define risk as permanent loss of capital – not price volatility. Limit our holdings to quality businesses with sound balance sheets, high profitability (high ROE/ROIC and profit margins), strong free cash flow generation, and manageable debt.