Mr. Hogan: Fenimore Asset Management was started in 1974 after the Putnam family sold their textile company. The family knew a lot about what it takes to run a successful business and based their investment philosophy on finding companies exhibiting those same characteristics. And that worked very well for them so we've been value managers since our inception. Our in-house analysts conduct original, independent research.
We have two publicly available mutual funds, the FAM Value Fund and the FAM Equity-Income Fund. I'm Co-Manager of the Equity-Income Fund.
TWST: Tell us your definition of equity income and a little bit more about the Fund itself.
Mr. Hogan: The FAM Equity-Income Fund invests primarily in equity securities. Every stock in the Fund pays a dividend which is likely to grow over time. If the companies are growing their cash flows, then their dividends will grow over time as well.
We manage the Fund in a concentrated manner with 29 holdings. We believe they are well managed, have sustainable competitive advantages with wide moats, and are very sound financially with plenty of free cash flow.
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