How FAM Dividend Focus fund achieves success by focusing on dividends
- FAM Dividend Focus fund focuses on buying and holding stocks
- The fund has a low turnover rate of 4%
- The fund has consistently outperformed its peers and benchmark index
- The managers conduct extensive research on companies and look for high-quality businesses with growing dividends
- The goal is to generate a compounded annual growth rate of greater than 10%
FAM Dividend Focus fund, managed by Paul Hogan and Will Preston, has found success by adopting a buy-and-hold strategy. The fund’s low turnover rate of 4% reflects its commitment to letting winners run. Hogan learned the importance of not selling stocks too soon after selling shares of Ross Stores and missing out on compounded gains. The fund’s strategy of buying and holding has resulted in consistently strong performance, outperforming its peers and the benchmark index. The managers conduct extensive research on companies, looking for high-quality businesses with growing dividends. They aim to generate a compounded annual growth rate of greater than 10%. By focusing on dividends and long-term growth, FAM Dividend Focus fund has become a top performer in the mid-cap category.
Factuality Level: 7
Factuality Justification: The article provides information about the investment strategy of Fenimore Asset Management’s FAM Dividend Focus fund and the experiences of its portfolio managers. The information is based on interviews with the managers and includes data on the fund’s performance and holdings. The article does not contain any obvious misinformation or propaganda, but it does include some subjective statements and opinions from the managers. Overall, the article provides factual information about the fund and its investment approach.
Noise Level: 3
Noise Justification: The article provides relevant information about the investment strategy of the FAM Dividend Focus fund and the experiences of its portfolio managers. It includes data on the fund’s performance and holdings, as well as insights into their approach to buying and holding stocks. The article stays on topic and does not dive into unrelated territories. However, there is some filler content, such as the mention of the text-to-speech technology and the request for feedback at the beginning of the article, which is not directly related to the main subject.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the investment strategies of a portfolio manager and provides information about specific companies in the portfolio.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article does not mention any extreme events or their impacts.
Public Companies: Ross Stores (ROST), Arthur J. Gallagher (AJG), CDW (CDW), Trane Technologies (TT), Microchip Technology (MCHP), Stryker (SYK), Air Products and Chemicals (APD), Broadridge Financial Solutions (BR), Entegris (ENTG), IDEX (IEX)
Key People: Paul Hogan (Portfolio Manager), Will Preston (Co-Manager)
Reported publicly:
www.marketwatch.com 
