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Martin launches Focused Value Fund

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Martin Capital Management has launched the Martin Focused Value Fund, an actively managed mutual fund that will employ the same disciplined, value-investing strategy as the firm’s private client portfolio, in a bid to provide long-term growth of capital while carefully managing risk.

"I have argued for many years that the modern, too-big-to-fail financial industry has underserved the average investor – especially in terms of appreciation for risk," says portfolio manager and firm founder Frank K Martin. "2008 was a perfect example of the peril of fund portfolios that are mandated to be fully invested at all times. We are not compelled to be 100% invested. That means we have the freedom to wait patiently for the right value opportunities. We are willing to hold a large portion of the fund’s portfolio in cash if we’re not finding bargains – or if we feel that global economic threats pose a significant risk to investors’ capital. The time to put money to work is when the stocks of good companies get cheap. It’s silly to invest just to be invested.”

The Martin Focused Value Fund buys securities, primarily shares of publicly traded US companies, at prices judged to be at a significant discount to the underlying (intrinsic) value of the business. The strategy requires patience and discipline on the part of both portfolio managers and investors. It is also a focused (or concentrated) portfolio, consisting of relatively few businesses that represent Martin’s best ideas. 

"It is an approach that is intentionally contrary to the typical financial industry portfolio," says Martin. "Wide diversification promotes generally average results. But when the market is down an average of 37% like it was in 2008, most investors would say average is unacceptable."
 

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