A.Q. Johnson & Co., Inc. is the investment adviser of the Fund and has responsibility for the management of the Fund’s affairs subject to the policies and supervision of the Trust’s Board of Trustees. A.Q. Johnson &Co., Inc. located at 7855 Ivanhoe Ave., Ste 210, La Jolla, CA 92037, was organized in 2002 and has been managing investment accounts and money since that time. The Adviser serves as investment adviser to individuals, trusts, retirement plans, and corporations.
Under the Management Agreement, the Adviser, at its own expense and without reimbursement from the Trust, furnishes office space and all necessary office facilities, equipment and executive personnel necessary for managing the Fund. For its services, the Adviser receives an annual investment management fee of 1.50% of the average daily net assets of the Fund.
- Generation of Ideas: We avoid widely followed sources, preferring isolated or overlooked stocks that stand on their own merit.
- Screening: Both US and International markets are screened to determine which sectors & industries are selling at discounts to their intrinsic value.
- Fundamental Analysis: Original source material (10-Ks, annual reports, proxy materials & industry reports) are studied and reviewed.
- Sell Discipline: Sell or price targets are established before shares are purchased, based on the estimation of a company’s intrinsic value per share. Common stocks are sold if a reassessment were to determine that intrinsic value was mistakenly over estimated, a better prospective investment has appeared or the price has reached our appraisal of intrinsic value.
- Concentration: We generally own 25-35 stocks in the portfolio. We hold concentrated positions for two main reasons. Concentration lowers our risk of losing capital because we limit the portfolios to our best ideas and enables each company to have a meaningful impact on our investment results.
Value investing was originated in 1934 by Benjamin Graham in his classic textbook, Security Analysis. We adhere to the following value oriented investment principles:
- Common stocks should be viewed as small parts of a business that is for sale.
- By analyzing fundamental data of a business, an investor can determine its intrinsic value or measurable worth.
- When a common stock is selling for less than its intrinsic value it is undervalued and can be purchased with a “margin of safety” to protect capital and provide for a satisfactory rate of return.
- Value investing rewards discipline and patience. A minimum time horizon of 3-5 years is necessary in order for share prices to reflect intrinsic values over time.
- We invest worldwide in both U.S. and foreign stocks to provide for greater diversification and enhanced rates of return.
Arthur Q. Johnson, Chartered Financial Anaylst, is the president of the adviser A.Q. Johnson & Co., Inc. and manages the Fund’s investment portfolio on a day-to-day basis. Mr. Johnson is a member of the Association for Investment Management & Research and the San Diego Society of Financial Analysts. Prior to founding the Mundoval Fund he was principal at Brandes Investment Partners, L.P. from 1986 to 2000. He is a graduate of the University of California, Davis and holds an MBA from the University of Notre Dame.
Natalie Gumina, an investment advisory representative, joined the adviser A.Q. Johnson & Co. in May 2006. Her role there includes portfolio administration, compliance and fund marketing. Prior to joining the firm she was a financial advisor with AXA Advisors a global financial and insurance services provider. Natalie holds a Bachelor’s degree from the University of California Los Angeles in Business Economics with specialization in accounting.