So Many Choices…Why Invest in the Private Capital Management Value Fund?
A Proven Record of Long-Term Investing Excellence. Private Capital Management (“PCM”) was founded in 1986. The firm is known for applying a cash-flow driven, value methodology to small-cap stock selection. PCM has managed small-cap portfolios for individual and institutional clients for over 35 years. See our long-term record here.
A Distinct Approach…Insightful Value Research Paired with Highly Active Portfolio Positioning. Our goal is to outperform over multi-year periods by building a deeply undervalued portfolio that has great upside potential. We will often commit 3% to 5% of the Fund’s assets to compelling new opportunities, with a concentrated portfolio of fewer than 40 stocks. Fewer investments can translate to better results when our research hits the mark. We believe there is reason to be wary of “active-lite” small-cap funds that hold hundreds of securities watering down the upside potential from individual stock selection.
With Small-Cap Funds, Size Matters! VFPIX Actually Invests in Small and Micro-Cap Stocks! This is a highly-active approach! Small-cap (below $3bn) and micro-cap (below $1bn) companies are difficult to research and take considerably more effort. While many small-cap funds allocate most of their capital to companies ranging from $2.5bn to $7.5bn, we are truly small-cap focused; it is in these “under-followed” companies that overlooked opportunities can be found by capable investors. See the Fund’s market capitalization profile here.
Investing Success Is About So Much More Than the Numbers! Meet a “Rel-Activist” Investor. Computers can identify statistical valuation anomalies based on public company financials. The real analytical work however is done by investors who know the right adjustments to make to company financials, and, of equal importance, take the time and make the effort to meet management and evaluate governance structure. Finally, meet an investor who believes it is part of the job to occasionally get active with portfolio companies when management loses their way. We call our approach “rel-activism” – learn more about what that means here.