Manager’s Commentary – First Quarter 2021 Review April 12, 2021
What a difference a year can make!
Why invest in the Hodges Small Intrinsic Value Fund?
- Small value fund focused on investing in companies that have an attractive market price relative to underlying asset value, earnings power, dividend yield, or the potential for a turnaround in business fundamentals.
- The Fund may also invest in companies with mispriced or misunderstood deep, intrinsic value but lacking a near term catalyst to unlock that value. These investments may require a longer time horizon.
- The Fund has historically been skewed towards micro cap stocks.
as of 03/31/21
At A Glance
- Ticker HDSVX
- Total Net Assets $16.19 Million
- CUSIP 74316J318
- Investment Approach Bottom Up, Fundamental
- Typical Cash Position < 10%
- Number of Holdings 45
- Minimum Investment $1,000
Risk Profile
LOW HIGHPerformance
| Returns (%) as of 3/31/2021 | QTD | 1 YR | 3 YR | 5 YR | 10 YR | SI |
|---|---|---|---|---|---|---|
| Small Intrinsic Value Fund | 27.88 | 153.51 | 11.55 | 12.12 | -- | 9.78 |
| Russell 2000® | 12.70 | 94.85 | 14.76 | 16.35 | -- | 10.82 |
| Russell 2000® Value Return | 21.17 | 97.05 | 11.57 | 13.56 | -- | 8.88 |
| Returns for greater than one year are annualized | Gross Expense Ratio | 2.43 | ||||
| Net Expense Ratio | 1.291 | |||||
Calendar Year
| Returns (%) as of 3/31/2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 |
|---|---|---|---|---|---|---|---|
| Small Intrinsic Value Fund | 6.60 | 29.42 | -22.68 | 8.76 | 19.76 | -0.83 | 12.04 |
| Russell 2000® | 19.96 | 25.52 | -11.01 | 14.65 | 21.31 | -4.41 | 4.89 |
| Russell 2000® Value Return | 4.63 | 22.39 | -12.86 | 7.84 | 31.74 | -7.47 | 4.22 |
1The Advisor has contractually agreed to reduce its fees at least until August 31, 2021.
The Advisor is permitted, with Board approval, to be reimbursed for fee reductions and/or expense payments made in the prior three years from the date the fees were waived and/or expenses were paid.
Please see prospectus for details.
Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month-end may be obtained by calling (866) 811 0224, or visiting www.hodgesfunds.com for quarterly performance. The fund imposes a 1.00% redemption fee on shares held less than 30 days. Performance data does not reflect the redemption fee. If reflected, total return would be reduced. Performance reflected is net of all other fees and expenses.
Holdings
as of 3/31/2021 Top Ten Holdings
| Security | Ticker |
|---|---|
| DELTA APPAREL INC | DLA |
| ICHOR HOLDINGS LTD | ICHR |
| EAGLE MATERIALS INC | EXP |
| KIMBALL ELECTRONICS INC | KE |
| COVENANT LOGISTICS GROUP INC | CVLG |
| CLEVELAND-CLIFFS INC | CLF |
| WHITING PETROLEUM CORP | WLL |
| VISTA OUTDOOR INC | VSTO |
| HILLTOP HOLDINGS INC | HTH |
| HORACE MANN EDUCATORS | HMN |
| Total | 31.08% |
Fund holdings are subject to change at any time and should not be considered a recommendation to buy or sell any security.
Portfolio Managers
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Eric J. Marshall, CFA
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Eric J. Marshall, CFA, currently serves as President, Co-Chief Investment Officer, and Director of Research for Hod … Read Full Bio |
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Christopher R. Terry, CFA, CIPM
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Chris Terry, CFA, CIPM is Vice President, Portfolio Manager and Senior Research Analyst for Hodges Capital Manageme … Read Full Bio |
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Derek R. Maupin
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Derek serves as Vice President, Portfolio Manager and Sr. Research Analyst of Hodges Capital Management. He is the … Read Full Bio |
Commentary & News
What to expect from markets in 2021 Fox Business / December 28, 2020
Eric Marshall shares his insight on a few stock picks going into the new year on “The Claman Countdown.”
2020 Estimated Capital Gains November 19, 2020
Estimated capital gains for Hodges Fund, Hodges Small Cap Fund, Hodges Blue Chip Equity Income Fund, and Hodges Small Intrinsic Fund.
Mutual fund investing involves risk. Principal loss is possible. The fund invests in smaller companies, which involves additional risks such as limited liquidity and greater volatility. The fund invests in foreign securities which involves greater volatility and political, economic and currency risks and differences in accounting methods. These risks increase for emerging markets. The fund may also make short sales of securities, which involves the risk that losses may exceed the original amount invested. The fund may also use options and future contracts, which have the risks of unlimited losses of the underlying holdings due to unanticipated market movements and failure to correctly predict the direction of securities prices, interest rates and currency exchange rates. These risks may be greater than risks associated with more traditional investments. Value investing carries the risk that the market will not recognize a security’s inherent value for a long time, or that a stock judged to be undervalued may actually be appropriately priced or overvalued.
Shareholders should refer to the summary prospectus dated July 29, 2020, as supplemented, September 8, 2020, for specific details related to the reduction of fees.
The Russell 2000 Value is a subset of the Russell 2000 Index. It represents companies with a lower price-to-book ratios and lower forecasted growth values. It is not possible to invest directly in an index.