This Gold-Rated Fund Follows Its Rules
Laser focus has led to high performance for Gold-rated FMI Common Stock.
Alec Lucas: Gold-rated FMI Common Stock is an outstanding contrarian, yet cautious, option for small- and mid-cap exposure.
Led by CIO and longest-tenured manager Patrick English and research director Jonathan Bloom, FMI’s stable 10-person management team runs this fund with a collaborative, high-conviction approach. It is focused on profitable companies with market caps below $5 billion at purchase and aims to buy them when they are trading at bargain prices; that often comes amid controversy or uncertainty. For example, the managers bought property and casualty insurer WR Berkley in late 2009 when the market was still suspicious of financials stocks. Its market cap has since more than doubled to $10 billion. FMI keeps tabs on liquidity in the fund's 40- to 50-stock portfolio and doesn't hesitate to close it to new investors to preserve flexibility. The portfolio doesn’t look like the Russell 2000 Index in terms of its sector exposures or in other respects nor does it behave like that index. It has, however, consistently lost less than the index in stress periods, including late 2018’s near bear market. That’s led to index- and peer-beating results over the long term.
Alec Lucas has a position in the following securities mentioned above: FMIMX. Find out about Morningstar’s editorial policies.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.