ELKHART, Ind., June 12, 2012 /PRNewswire/ -- Martin Capital Management, LLC, with headquarters in Elkhart, Indiana, announced the launch of Martin Focused Value Fund (ticker symbols: MFVRX/MFVIX, website: www.martinfund.com), an actively managed mutual fund. The Fund will employ the same disciplined, value-investing strategy as the firm's private client portfolio, seeking to provide long-term growth of capital while carefully managing risk.
"I have argued for many years that the modern, too-big-to-fail financial industry has underserved the average investor – especially in terms of appreciation for risk," said portfolio manager and firm founder Frank K. Martin. "2008 was a perfect example of the peril of fund portfolios that are mandated to be fully invested at all times. We are not compelled to be 100% invested. That means we have the freedom to wait patiently for the right value opportunities. We are willing to hold a large portion of the fund's portfolio in cash if we're not finding bargains – or if we feel that global economic threats pose a significant risk to investors' capital. The time to put money to work is when the stocks of good companies get cheap. It's silly to invest just to be invested," Mr. Martin said.
The Martin Focused Value Fund buys securities, primarily shares of publicly traded U.S. companies, at prices judged to be at a significant discount to the underlying (intrinsic) value of the business. The strategy requires patience and discipline on the part of both portfolio managers and investors. It is also a focused (or concentrated) portfolio, consisting of relatively few businesses that represent Martin's best ideas. "It is an approach that is intentionally contrary to the typical financial industry portfolio," said Martin. "Wide diversification promotes generally average results. But when the market is down an average of 37% like it was in 2008, most investors would say average is unacceptable."
About Martin Capital Management, LLC
Frank Martin has more than 40 years of investment experience. He founded Martin Capital Management in 1987 and has written two books on value investing along with numerous essays. By being willing to hold cash in market periods judged to be expensive, Mr. Martin's firm largely avoided two of the biggest market meltdowns in U.S. history: the dot-com bust of 2000 and the financial crisis of 2008. The prelude to the latter of those two events, the sub-prime mortgage debacle, he described as "the perfect storm" in his annual report to private investors as early as 2006 – nearly two years before the market crash. "Having the flexibility to retreat to cash in times of danger helped us prevent disastrous losses. And when stocks got cheap during the market panic, we then had the liquidity to buy good companies at compellingly low prices," Martin said.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Martin Focused Value Fund. This and other important information about the Fund is in the prospectus, which can be obtained by calling toll free 1-855-367-6383 or by visiting www.martinfocusedvaluefund.com. The prospectus should be read carefully before investing.
Martin Focused Value Fund is distributed by United Financial Securities, Inc., 2960 N. Meridian St., Ste. 300, Indianapolis, IN 46208, member FINRA. Past performance is no guarantee of future results.
The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.
Gary Sieber, Chief Marketing Officer
Martin Capital Management
300 NIBCO Parkway, Suite 301
Elkhart, IN 46516
Phone: (574)-970-2926 or (574)-293-2077
SOURCE Martin Capital Management, LLC