Tributary Small Company Fund Institutional Plus Class (FOSBX)

Overview

The advisor in question focuses on a niche investment strategy tailored towards the small-cap segment of the market. By defining small-cap companies as those with a market capitalization of less than $6 billion, this approach targets businesses on the cusp of growth, aiming to capitalize on their potential before they escalate to a larger scale. The investment philosophy hinges on the belief that these smaller companies, while potentially more volatile, offer significant upside potential due to their capacity for rapid expansion and innovation. The strategy involves a diversified mix of direct investments in common stocks and indirect exposure through convertible securities, thereby balancing potential rewards with an understanding of the inherent risks of the small-cap sector.

Products and Services

• Common Stocks

  Direct equity investments in small-cap companies, offering investors a share of ownership and the potential for capital gains derived from the company’s growth. This constitutes the core of the investment approach, targeting companies with robust potential for innovation and market impact.

• Convertible Bonds

  Debt securities that can be converted into a predetermined amount of the company's equity, usually at the discretion of the bondholder. This dual nature provides a steady income stream through interest payments, alongside the possibility to convert into equity and benefit from the company's growth, thus offering a balanced risk-reward proposition tailored to small-cap investments.

• Convertible Preferred Stocks

  A type of preferred shares that offer a fixed dividend but can be converted into a specified number of common shares, usually at the option of the holder. This allows investors to participate in the equity appreciation of promising small-cap companies while receiving dividend income, blending growth potential with income stability.

• Options and Rights

  Derivative instruments that give the investor the right, but not the obligation, to buy or sell a security at an agreed-upon price within a certain period. These instruments are used strategically to leverage the market position of small-cap stocks, potentially amplifying returns while managing risk exposure.