Buying High-Quality Midcaps at a Discount to Their Value

“John D. Fox discusses Fenimore Asset Management and the FAM Value Fund. As a value investor, Mr. Fox aims to invest in high-quality companies at a discount to what he thinks they are worth. The FAM Value Fund primarily holds mid-cap companies but does have some large- and small-cap names. The portfolio is fairly concentrated. It holds less than 40 stocks, and about 50% of the money is invested in 14 of those stocks. When looking for a high-quality company, Mr. Fox wants a business with strong financials, manageable
debt, high returns on capital and good free cash flow. He also favors honest management teams who are good allocators of capital.” Read The Wall Street Transcript article.

 

Please see Fenimore disclosure.