Working on the assumption that a company’s management team knows more about its future than any Wall Street analyst, AmericaFirst has launched the AmericaFirst Large Cap Share Buyback Fund.
“The Fund is very unique in that it combines the historical advantages of share buyback with other time-tested strategies such as price momentum, low beta and earnings growth. Currently, the fund owns an equal-weighted portfolio of 25 large company stocks with an average buyback ratio exceeding 5 per cent,” says Rick Gonsalves (pictured), the Fund’s Portfolio Manager. “In essence, the Large Cap Share Buyback Fund invests in companies confident enough to invest in themselves.
“Numerous studies have shown that companies who purchase their own shares of stock over a 12-month timeframe have outperformed the broad indices with less downside risk. Many of these same studies are quick to point out that companies with over a 5 per cent buyback ratio tend to outperform even further.”
AmericaFirst Capital Management is a Sacramento, California-based Registered Investment Advisor established in 2007 that manages six mutual funds and has sub-advised nearly 20 unit investment trusts. Gonsalves is the Portfolio Manager and has won numerous awards for performance versus peers.