In founding the GoodHaven Fund, experienced portfolio manager Larry Pitkowsky sought to create a "go-anywhere" investment vehicle that would have the ability to invest in a variety of securities and geographies using a "business-like" investment philosophy. Central to our investment efforts is the "value" approach taught by Ben Graham, a money-manager and former professor at Columbia University (Warren Buffett was one of his students). Graham first popularized the concepts of intrinsic value and margin of safety, which we paraphrase below:
For a value investor, portfolio management becomes a process whereby the manager tries to estimate intrinsic value and make investments with an associated margin of safety. In any investment, a larger margin of safety implies a lower chance of significant loss and a greater potential profit. We marry these important philosophical concepts with a desire to primarily own companies that are growing, earn attractive returns on capital above their cost of capital, and have strong/shareholder-oriented management and favorable competitive industry dynamics.
In addition to seeking out undervalued high quality common stocks, the Fund may also invest in a variety of other securities and use other value investing strategies, attempting to profit from value disparities in corporate reorganizations, including bankruptcies and liquidations, distressed debt instruments as well as other “special situations” where the portfolio managers believe that the recognition of value is not driven by broad moves in markets, but by specific corporate events. We may also, subject to limitations set forth in our Statement of Additional Information employ derivatives or other securities seeking to profit or hedge our overall portfolio. A full description of our strategies is set forth in our Prospectus and Statement of Additional Information.
Unlike many investors, GoodHaven cannot be put in a simple style box. We primarily prefer companies that grow, but will sometimes buy one whose revenues are shrinking. We prefer to invest in common stocks, but will sometimes venture into other security types. And we prefer easily understandable businesses but sometimes buy those with more complicated financial statements. However the common theme in all our investments is that we are constantly trying to get much more than we give.
We are not stock market strategists, technical analysts, or fortune tellers. That does not mean we are immune from considerations of external economic factors or volatility in markets or individual securities. But our primary concern with these issues is about the risks they present, not their predictive power. We don’t mind volatility, but detest large risks. In our decades of experience, we have found almost nobody with an ability to predict the course of markets with short-term success over a long period of time.
Our experience suggests that time is better spent trying to position ourselves to react to events instead of trying to predict them.
Lastly, we believe that wide diversification is a hedge against ignorance. We manage the Fund with prudent concentration, believing that it is better to own fewer securities about which your knowledge is substantial than a much longer list where your knowledge is cursory. Although it should be obvious to most investors, we believe if you want to outperform an index over time, your portfolio can’t resemble the index.
People have interpreted our logo as depicting a shoreline sheltered from stormy seas, or an umbrella against the rain. Regardless of how you see it, we tried to create an image reflecting our belief that our job as portfolio managers is to attempt to both protect the wealth of our shareholders and also to compound that wealth over time. Although we cannot provide any guarantees and shareholders can lose money, we try hard to remember Warren Buffett’s two rules of money management:
Rule #1 – Don’t Lose!
Rule #2 – See Rule #1.
Before you invest in the GoodHaven Fund, please refer to the statutory prospectus or summary prospectus for important information about the investment company, including investment objectives, risks, charges and expenses. You may also obtain a hard copy of the prospectus by calling 1-855-OK-GOODX (1-855-654-6639). The prospectus should be read and considered carefully before you invest or send money.
The Fund is offered only to United States residents, and information on this site is intended only for such persons. Nothing on this 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.
References to other mutual funds should not be interpreted as an offer of those securities.
Past performance does not guarantee future results.
Mutual fund investing involves risk. Principal loss is possible. The Fund is nondiversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, the Fund is more exposed to individual stock volatility than a diversified fund. The Fund invests in mid and smaller capitalization companies, which involve additional risks such as limited liquidity and greater volatility. The Fund may invest in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. The Fund may invest in REIT's, which are subject to additional risks associated with direct ownership of real property including decline in value, economic conditions, operating expenses, and property taxes. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investment in lower-rated, non-rated and distressed securities presents a greater risk of loss to principal and interest than higher-rated securities.
The value of the Fund could be adversely affected in the event of a natural disaster, severe weather events, climate change, earthquakes, fires, war, terrorism, health pandemics and other public health crises.
The GoodHaven Funds are distributed by Quasar Distributors, LLC