
Palm Valley Capital Fund
Investment Objective
The Palm Valley Capital Fund seeks to achieve long-term total return.
Principal Investment Strategies
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The Fund primarily invests in a portfolio of small capitalization common stocks. The Fund considers small-cap companies to be those that, at the time of investment, have a market capitalization of less than $10 billion.
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Under normal circumstances, the Fund will hold common stocks
of fewer than 40 different companies.
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The Adviser to the Fund is Palm Valley Capital Management. The
Adviser narrows down its investable universe by primarily focusing on those small-cap companies that it believes are more likely to grow consistently, have long operating histories, are profitable and have historically generated positive free cash flow, and possess strong balance sheets.
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Once the Adviser has identified companies meeting its
quantitative and qualitative criteria, it seeks to purchase high-quality businesses that it believes to be trading below fair value
and are less likely to experience a permanent loss in value.
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The Adviser uses the discounted cash flow (“DCF”) valuation
model as its primary valuation methodology.
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To manage risk, the Adviser uses a flexible and opportunistic
approach to the Fund's cash position. The Fund may hold a
significant position in cash or cash equivalents for an extended
period of time.
Fund Facts as of September 30, 2023
Ticker Symbol
PVCMX
Share Class
Investor
Minimum Investment
$2,500
Fund Inception
4/30/19
Portfolio Managers
Eric Cinnamond, CFA
28 years industry experience
BBA Stetson University
MBA University of Florida
Jayme Wiggins, CFA
19 years industry experience
BBA Stetson University
MBA Columbia Business School
Definitions
Free Cash Flow: Cash from operating activities minus capital expenditures.
Discounted Free Cash Flow (DCF): A valuation method used to estimate the value of an investment based on its future free cash flows. DCF determines the present value of expected future free cash flows using a discount rate, or required return.