photography by Collier Black

Identify Good Businesses



  • Do not overpay.  When necessary, invest patiently.
  • Seek to limit permanent losses to capital. 
  • Focus on high-quality businesses that can be valued with a high degree of confidence.
  • Require an adequate return relative to the risk assumed.
  • Act opportunistically.  Take risk when sufficiently compensated.
  • Maintain consistent investment process despite pressures to conform.
  • Do not sacrifice investment standards to manufacture opportunities.​

Good Business


Predictable Free Cash Flow


Balance Sheet

300 name possible buy list

Established companies up to $10B market cap

Good Price

After determining whether it's a good business, we ask,
"Is it selling at a good price?"

Unique Valuation Methodology:

  • Discounting free cash flows (DFC)

    • Discount rate 10-15%

    • Normalized free cash flows

    • Growth rate 2-5%

  • Discount to NAV/balance sheet valuations

Stock reaches calculated valuation

Valuation adjusted below stock price

Combination of operating and financial risk

Position can no longer be valued with a high degree of confidence

avoid adding to positions with declining valuations


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.  


© 2021 by Palm Valley Capital Management

Mutual fund investing involves risk.  Principal loss is possible.  The Palm Valley Capital Fund invests in smaller sized companies, which involve additional risks such as limited liquidity and greater volatility than large capitalization companies.  The ability of the Fund to meet its investment objective may be limited to the extent it holds assets in cash (or cash equivalents) or is otherwise uninvested.


The Palm Valley Capital Fund is offered only to United States residents, and information on this web site is intended only for such persons. Nothing on the web site should be considered a solicitation to buy or an offer to sell shares of the Fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.

The Palm Valley Capital Fund is distributed by Quasar Distributors, LLC.

Availability of Additional Information

The Palm Valley Capital Fund's investment objectives, risks, charges and expenses must be considered carefully before investing.  The prospectus contains this and other important information about the investment company, and it may be obtained by calling 904-747-2345, or clicking here.  Read it carefully before investing.