Clarkston Partners Fund Founders Class (CFSMX)

Overview

This fund is geared towards investors seeking exposure primarily to U.S.-traded equity securities encompassing small- and medium-market capitalization companies. Leveraging a strategic approach, it focuses on investing in entities that are considered of high quality by the Adviser and are deemed undervalued in terms of their projected long-term free cash flows. While the fund predominantly channels investments into the U.S. equity market, it also extends its portfolio to include foreign equity securities, facilitated through American Depositary Receipts (ADRs). Despite its concentrated investment strategy, the fund maintains a non-diversified status, allowing for potentially greater returns albeit at a higher risk due to lesser diversification.

Products and Services

The fund offers a variety of investment avenues within the realm of equity securities, catering to investors' different financial goals and risk appetites:

• Common Stock: Shares of ownership in companies that bring with them voting rights and potential dividends. Investing in common stock allows fund participants to partake in the growth of these companies, although it comes with the risk associated with equity investments.
• Preferred Stock: A type of stock that typically provides no voting rights but offers a higher claim on assets and earnings than common stock. Dividends for preferred stocks are often fixed and paid out prior to any dividends to common shareholders, making it an appealing option for those seeking more stable income.
• Convertible Securities: Bonds or preferred shares that can be converted into a predetermined number of common stock or equity shares, presenting a unique blend of fixed income and potential capital appreciation. These securities offer investors the opportunity to benefit from the potential upside of the underlying company's stock while mitigating downside risk with the security of a bond or preferred share.
• American Depositary Receipts (ADRs): A method for U.S. investors to invest in foreign companies' stocks, ADRs represent shares in the equity of non-U.S. companies traded on U.S. exchanges. This enables the fund to diversify across geographical boundaries without the complexities often associated with investing directly in foreign markets.