{"id":10915,"date":"2024-04-10T17:49:00","date_gmt":"2024-04-11T00:49:00","guid":{"rendered":"https:\/\/familyenterpriseusa.com\/?p=10915"},"modified":"2024-04-10T17:49:12","modified_gmt":"2024-04-11T00:49:12","slug":"uncover-the-power-of-active-management-with-fenimore-asset-management","status":"publish","type":"post","link":"https:\/\/familyenterpriseusa.com\/feusa\/uncover-the-power-of-active-management-with-fenimore-asset-management\/","title":{"rendered":"Uncover the Power of Active Management with Fenimore Asset Management"},"content":{"rendered":"

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Active Management – A Different Perspective<\/strong><\/h2>\n

 <\/p>\n

Fenimore Asset Management, manager of the FAM Funds, is dedicated to protecting and growing capital over the long term. To accomplish this, we focus on independent, in-depth research; it\u2019s this due diligence that we believe makes an effective active management strategy\u2014one focused on active company research rather than trading activity.<\/strong><\/em><\/h3>\n

 <\/p>\n

An often cited statistic relevant to active management strategies is Active Share<\/a>. Although our Funds do possess high Active Share, in this paper, we discuss Fenimore\u2019s active investment management process, its key features (beyond Active Share), and how it compares to other styles of active management.<\/p>\n

For the purpose of this paper<\/a>, we benchmark against our peers with actively managed, long-only, no-load mid-cap funds. However, we apply this active management strategy to all our portfolio strategies.<\/p>\n

FENIMORE\u2019S STYLE OF ACTIVE MANAGEMENT<\/strong><\/p>\n

On the surface, our portfolios may not seem \u201cactive,\u201d certainly when judged by trading activity. However, it\u2019s quite the contrary. Our research team is very active when judged by the activities that we believe matter most\u2013 the diligence that helps us build conviction and grow wealth for our investors over the long term.<\/p>\n

At the most basic level, active investment management can be defined as a strategy where portfolio managers actively make decisions to buy or sell securities. This is opposed to passive investment management, where investment decisions are made automatically or quantitatively with the aim of tracking an Index or Benchmark. When it comes to active management, there are many styles. We find that oftentimes investors equate active management with high portfolio activity\u2013 that is, trading activity and high turnover of portfolio holdings. At Fenimore, we take a different approach.<\/p>\n

While our level of portfolio activity, as measured by trading and turnover, will ebb and flow, the activity that drives our investment research process and ultimately portfolio decisions, remains in constant motion. Our active management strategy is focused on a philosophy and process dedicated to conducting extensive due diligence on any business in which we may invest.<\/p>\n

The goal of this independent, in-depth activity is to build concentrated, focused portfolios that create real wealth over the long term, without taking undue risk. Real wealth, in our view, is created by generating absolute returns that outpace the rate of inflation.<\/p>\n