Fund Objective
The Motley Fool Independence Fund seeks to achieve long-term capital appreciation.
Principal Strategies
The Motley Fool Independence Fund applies a value discipline to its selection of domestic and foreign common stocks. It seeks to achieve long-term performance by focusing on well-financed companies that the Fund's managers find undervalued, as well as on senior securities and debt instruments that the Adviser believes are undervalued. Although there is no limitation on the percentage of Independence Fund assets that will be invested in securities of foreign companies, such investments will generally constitute no more than 50% of Fund assets.
Approach
The Motley Fool Independence Fund's focus is on absolute return. The Fund's managers may invest in any company, country, market, industry, or sector if their analysis reveals a potential opportunity for outsized risk-adjusted return in alignment with the Fund's investment approach.
Our investment team analyzes companies from a bottom-up perspective. We focus on conservatively run companies that we believe the market has irrationally undervalued and that possess catalysts to help them realize their full market value. Companies eligible for investment with us generally have few liabilities and are led by competent management teams whose interests are well aligned with those of their shareholders.
We place a high premium on companies that operate easily understandable business models, that have clear and reliable disclosures, and that operate in markets where reliable regulatory frameworks exist.
The Adviser intends to limit risk by concentrating on companies that have high-quality businesses with strong market positions, minimal leverage, and robust streams of free cash flow. In addition to aiming for investments in stocks that are trading at significant discounts to their estimated intrinsic values, the Adviser also looks for catalysts that have the potential to unleash value.
In making investment determinations, the Adviser also considers published information from The Motley Fool's newsletter services, the Motley Fool CAPS service, and the Motley Fool community.