Investment Philosophy

The Greenspring Fund, a no-load, value-oriented mutual fund, was founded in 1983.

Since that time, our goal has remained constant.  We strive for consistent, strong, risk-averse performance over an entire market cycle.  We believe that focusing on long-term capital appreciation has proven effective during the highly volatile conditions of recent market cycles.  Looking forward, we feel that our goals of providing steady, consistent performance will continue to differentiate the Greenspring Fund.

The Greenspring Fund is a “balanced fund” comprised of equities and fixed income securities.  As investors, we focus on inefficiently followed securities that we believe are undervalued and often possess company-specific catalysts for future appreciation.  By carefully investigating these companies and understanding the motivations of the management teams, we attempt to identify attractive investments selling at discounts to the underlying value of their business models.  Our efforts are also focused on identifying securities that are less “market sensitive” as we endeavor to limit the exposure of the portfolio to the market’s volatility.

Greenspring Fund seeks to identify equity securities that:

  • Trade at a discount to their industry peers and/or the overall market
  • Are overlooked, temporarily out of favor or not widely followed by the investment community
  • Show potential for appreciation because of company-specific reasons or events
  • Are less dependent on favorable movement in the overall markets to build shareholder value

Greenspring Fund relies on its own research-intensive efforts to uncover these securities, taking into consideration:

  • Management of the company
  • Quality of the company’s balance sheet
  • Past and expected future profitability
  • Potential for free cash flow generation
  • Market position of the company in its industry and overall prospects for industry
  • Company-specific events: e.g., anticipated success of a new product, change in management, takeover likelihood, etc.
  • Valuation in relation to its peers and its historical valuation

Greenspring Fund seeks to identify fixed income securities that typically:

  • Are available at attractive prices due to inefficient pricing by the investment community or misunderstood factors
  • Mature in the near-term, often with put or call features; therefore, mitigating interest-rate risk
  • Provide higher returns than that available on short-term Treasuries or money market funds

Greenspring Fund also seeks to identify fixed income securities that are capable of producing equity-like returns without the volatility that is inherent in the stock market.

To complete the shareholder experience, we add Greenspring Fund’s integrity, unmatched service and a thoughtful commitment to shareholder well-being.

 

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