Palm Valley Capital Fund Investor Class (PVCMX)

Overview

The investment outlined focuses on achieving long-term total return, with a strategy centered on investing primarily in small capitalization (small-cap) common stocks. Targeting primarily U.S. common stocks of small-cap companies, the fund is designed for investors looking to capitalize on the potential growth and financial opportunities within the small-cap market. By incorporating a blend of investments that may include equity securities of real estate investment trusts (REITs), convertible securities, and U.S. government obligations, the fund aims to diversify its portfolio to manage risk effectively. The Adviser's approach to managing the fund's cash position is flexible and opportunistic, aiming to adapt to market conditions and optimize investment outcomes.

Products and Services

• Small-Cap Common Stocks

  The primary focus of the investment is on small capitalization (small-cap) common stocks, mainly in U.S. companies. These stocks represent the equity of companies with relatively small market capitalization. Investing in small-cap stocks is often considered a way to achieve growth, as these companies have the potential for significant expansion and price appreciation.

• Equity Securities of REITs

  Part of the investment portfolio may include equity securities of real estate investment trusts (REITs). REITs are companies that own, operate, or finance income-producing real estate across a range of property sectors. Investing in REITs allows investors to gain exposure to real estate without directly investing in physical properties, potentially offering income through dividends and long-term capital appreciation.

• Convertible Securities

  Convertible securities are also part of the investment options, providing a blend between bonds and stocks. These are typically bonds or preferred stocks that can be converted into a predetermined number of common stock or equity shares. The dual nature of convertible securities offers potential for income via interest or dividends and conversion into equity for capital gains, making them an attractive option for diversifying investment strategies.

• U.S. Government Obligations

  The fund may invest in U.S. government obligations, such as Treasury bonds, notes, and bills. These investments are backed by the U.S. government, making them relatively low-risk. They provide a steady stream of income through periodic interest payments, contributing to the fund's goal of achieving total return while managing risk.