The Golub Group Equity Fund (the “Fund”) was started in 2009 by the fund’s advisor, Golub Group, LLC (the “Advisor”). The investment objective of the fund is to provide long-term capital appreciation and to provide current income.
Is the Fund right for you? The Fund may be suitable for:
- Long-term investors seeking a fund with an investment objective of long-term capital appreciation
- Investors seeking an investment that will provide moderate current income.
- Investors willing to accept price fluctuations in their investments
The Fund invests primarily in common stocks that, in the opinion of the Advisor, appear to be temporarily undervalued by the market. The Advisor considers a security to be temporarily undervalued if the security’s intrinsic value is significantly greater than the range in which the security is trading in the securities markets. In order to implement this strategy, The Advisor will focus on large capitalization global businesses, pay strict attention to the valuation of each business, and invest for the long-term.
The Advisor selects portfolio securities only after that security has passed through its “Equity Research and Portfolio Implementation Process”. Typically, this process begins with quantitative screens or other idea sources that narrow the initial universe of stocks based on market capitalization, valuation metrics, return metrics, growth characteristics and financial strength. The Advisor focuses on businesses that have strong cash flow, solid balance sheets, a history of consistent profitability, high return on capital, and the capacity to pay and regularly increase dividends.
The Advisor then answers the following key questions:
- What are the company’s primary risks?
- Can the company have an enduring competitive advantage?
- Is the company run by proven, competent managers?
- Does the company have attractive financial characteristics?
- Why is this idea a compelling investment?
Once a security passes this due diligence, a formal report highlighting strenghs/investment rational and weaknesses/risks and a valuation summary is presented to the Advisor’s Investment Committee. Investment decisions are made via consensus opinion of the members of the Investment Committee. The Fund’s investments will consist primarily of common stocks of companies with capitalization of greater than $10 billion, although if a security is determined by the Advisor to be an attractive investment, capitalization will not be a limiting factor.
Under normal circumstances, the Fund will invest at least 80% of its net assets in equity securities. Equity securities in which the Fund may invest include common stocks and
common stock equivalents (such as rights or warrants, which give the Fund the ability to purchase the common stock, and convertible securities, which are securities that are convertible into the common stock), real estate investment trusts (“REITs”), and shares of other investment companies (including open-end and closed-end funds and exchange-traded funds (“ETFs”)) whose portfolios primarily consist of equity securities. The Fund
also may invest in foreign companies, either directly or through American Depositary Receipts (“ADRs”), which are receipts issued by U.S. banks for shares of a foreign corporation that entitle the holder to dividends and capital gains on the underlying security. ADRs are denominated in U.S. dollars, and trade on U.S. exchanges. The Adviser will normally seek to construct a diversified portfolio generally consisting of 30-35 securities positions.
The Fund may invest up to 20% of its net assets in cash or invest in money market funds or investment grade, short-term money market instruments, including U.S. government and agency securities, commercial paper, certificates of deposit, repurchase agreements and other cash equivalents. By keeping cash on hand, the Fund may be able to meet shareholder redemptions without selling stocks and realizing gains and losses.
The sell decision focuses on valuation and fundamentals. The Advisor believes in buying stocks of companies that will produce favorable results over the long-term and, therefore, the Fund does not intend to purchase or sell stocks for short-term trading purposes. Overpriced securities and those with deteriorating fundamentals that cannot support the current valuation of the security are candidates for sale.
We Are Located
San Mateo, CA 94404
Phone: (650) 212-2240
Fax: (650) 212-2249
Distributed by Ultimus Fund Distributors, LLC (Member FINRA)
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