Matthew 25 Fund is an open-ended, non-diversified, investment company that seeks long-term capital appreciation through investments in common stocks, securities convertible into common stocks, preferred stocks and/or bonds. Income, through dividends or interest, will be a secondary objective.
The Fund blends Growth and Value Investing in its securities selection process. The Fund’s Adviser places great emphasis on valuing a business, which then leads to calculating a value for the company’s securities. This information is then utilized when buying or selling stocks, in order to increase the potential returns or to reduce the risk of price declines of the Fund’s investments.
The four categories that the investment Adviser evaluates, in order to value a company and its securities, are as follows:
The Adviser believes that the Fund will make the most money by investing with the exceptional; accordingly, the Adviser’s search is for securities possessing the best combinations of a desirable business, with outstanding management and clean financials (low debt and sufficient working capital), and a market price that the Adviser deems to be at or below its fair value.
The Fund is willing to invest in the securities of companies with small, medium or large capitalization. In other words, the Fund is open to search a large universe of public companies so that it may find stocks with the exceptional traits that the Fund so desires. Whenever the Adviser finds such an investment, the Adviser may purchase this stock or its convertible securities with up to 25% of the Fund’s total assets. The Fund’s willingness to place a large percentage of its assets in a single stock does distinguish it from most other funds.
Please see the prospectus for complete information, including investment objectives, risks, charges and expenses. Read it carefully before you invest or send money.