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Home > Financial Services > Mutual Funds > FMA Funds
FMA Funds
Fiduciary Management Associates, LLC is a fund manager that invests in domestic assets with an approach that specializes in the value perspective. This fund offers large cap, small cap, and fixed income products, FMA has developed a strong presence in the multi-employer marketplace. FMA Small Company Instl seeks long-term total return consistent with reasonable risk. The fund invests at least eighty percent of its assets in common stocks issued by U.S. companies with market capitalizations under 2 billion dollars. When selecting securities, the advisor looks for companies with low P/E ratios, strong cash flows, good credit lines, and improving balance sheets. The fund may also invest in foreign securities.
FMA believes that small cap stocks offer excellent opportunity for long term growth. Fiduciary Management Associates invests in companies offering more attractive valuations than their peer groups or the overall market, with catalysts that have the potential to accelerate earnings growth within the next 12 months. They believe that earnings growth is the single greatest driver of a stock’s performance and that there is a life cycle underlying a company’s earnings stream. The company invests in 50-70 stocks, diversified across market sectors, which have a market capitalization reflective of the Russell 2000 Index. Their portfolio management process combines a top-down and a bottom-up approach toward sector weightings and stock selection.
FMA Funds believe maintaining and adhering to their sell disciplines is an integral part of
FMA’s investment process. FMA will sell a holding when their price target is met or as its market capitalization grows beyond 2.5 billion dollars. In addition, the company reviews their portfolios regularly to identify sector and security contributions to performance. Relative underperformance or an absolute price decline of 25 percent will lead them to investigate whether there is a fundamental reason to sell. Lastly, FMA limits risk by trimming any holding that grows to five percent of the portfolio.
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