Polaris Global Value Fund
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POLARIS IN THE NEWS
MEDIA QUERIES: Contact Kelly Fitzsimmons The views in these article excerpts and
hyperlinks were those of the Fund manager as of each article's publication
date and may be subject to change. For the period ending June 30, 2010 the Fund's 1-, 5-, 10-year and since inception (7/1/89) average annual returns were 17.99%, -1.75%. 5.68% and 8.34%, respectively.
Performance data quoted represents past performance and is no guarantee of future results. Current performance may
be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than
original cost. Please click
here for the Fund's most recent month end performance and related information. The
article excerpts and hyperlinks reference individual securities that may
or may not currently be held by the Fund. Click
here to view a recent listing of the Fund's top 10
holdings. Furthermore, please see additional disclosure
at the end of this section. media archives: morningstar the boston globe ticker magazine associated press businessweek morningstar louis rukeyser's mutual funds morningstar the asian banker morningstar bloomberg news bloomberg news On June 1, 1998, a limited partnership managed by the
adviser reorganized into the Fund. The predecessor limited partnership
maintained an investment objective and investment policies that were, in
all material respects, equivalent to those of the Fund. The Fund's
performance for the periods before June 1, 1998 is that of the limited
partnership and includes the expenses of the limited partnership. If the
limited partnership's performance had been readjusted to reflect the first
year expenses of the Fund, the Fund's performance for all the periods
would have been lower. The limited partnership was not registered under
the Investment Company Act of 1940 ("1940 Act") and was not subject to
certain investment limitations, diversification requirements, and other
restrictions imposed by the 1940 Act and the Internal Revenue Code, which,
if applicable, may have adversely affected its
performance.
The recent growth rate in the stock market has helped to produce
short-term returns that are not typical and may not continue in the
future. Because of ongoing market volatility, fund performance may be
subject to substantial short-term changes.
"Five-Star Investor: International Investments For Bargain-Hunters"
May 12, 2010
The Polaris Global Value Fund, a $200 million world-stock fund, holds to a free-ranging style. While it doesn't invest in bonds, it buys foreign and U.S. stocks across the capitalization range; Fund manager Bernard Horn also stakes out bold positions in certain regions and industries. Fund management’s willingness to stand out from the pack can cause performance to fall out of step with its peers from time to time, but over the long haul that's been for the better: Its return since its inception in 1998 is far ahead of the typical fund in the world-stock group.
"Stocks Rebound, Up Nearly 4%; EU Bailout Assures Investors"
May 11, 2010
Rioting may stop in the streets of Greece, said Bernard Horn, president and portfolio manager for Polaris Capital, but the overriding challenge remains: Governments need to cut spending. The problem, according to Horn, is all the governments around the world are borrowing simultaneously. The pool of savings is not as great as the demand for borrowing.
"Fundamental Discount"
May 11, 2010
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Companies generating free cash flows are likely to sustain their growth rates in the long term. Bernard R. Horn, Jr., portfolio manager of the Polaris Global Value Fund, looks for such names worldwide, using a rigorous investment selection process that identifies companies trading at a discount to their intrinsic values.
"Why Investors Should Care About The Greek Crisis"
May 5, 2010
Bernie Horn, manager of the Polaris Global Value Fund, likes commodities because he expects growing demand from countries like China and India will be able to sustain prices for essentials like oil even if Europe's economy tanks. Emerging markets are pulling the developed world along when it comes to commodities, Horn says.
"STOCKS & MARKETS: Why Bank Stocks Could Vault Even Higher"
March 17, 2010
Not everyone is wary of smaller bank stocks. The $200 million Polaris Global Value Fund currently has a 20% weight in financials (as of 3/15/2010), and most of its domestic financial holdings are midcap or small-cap names. Fund manager Bernard Horn thinks smaller banks' share prices were pulled down by the drone of negative speculation about regulatory reform throughout 2009 more than by any concerns about specific company risks. Horn cites a huge performance gap between the stocks of large banks that recovered quite a lot in 2009 and small and midsize banks that in some cases fell 30% to 40%. That, he says, has created an opportunity. When you normalize earnings over time, small or midsize banks appear to have much more upside to their stock prices than most of the large banks, Horn states. Fund management thinks the midsize banks may be one of most undervalued investments in the world.
"Polaris Global Value's Distinctive Strategy Gives It An Advantage..."
January 25, 2010
According to Morningstar, the Polaris Global Value Fund’s distinctive strategy gives it an advantage over the long run. Morningstar considers the Fund one of relatively few true all-cap offerings, with its holdings distributed in a bell curve through the five market-cap levels from micro to giant. In addition, the portfolio has very different regional and sector weightings than those of the typical world-stock fund or the MSCI World Index.
"Something Special? Back From The Dead: This Global Value Fund Has Built A Record Of Long-Term Success..."
January 1, 2010
Management’s attention to fundamentals and dogged conviction in the eventual recovery of several beaten down sectors hurt near-term returns, but the fund is worth another look as many of the manager’s deep value plays appear to be turning the corner, notes reporter Peter Staas.
"Long-Term Winners With A Lid On Taxes"
November 4, 2009
The Polaris Global Value Fund boasts strong long-term fundamentals, but has suffered due to last year’s loss. Manager Bernie Horn has run this world-stock offering since its 1998 inception and has shown that a patient and contrarian process can win over longer time periods. The fund’s recent stake in British homebuilders – which struggled in 2008 only to come roaring back in 2009 – is a case in point.
"Investors Put Executives And Boards Under The Spotlight"
October 28, 2009
In their due diligence efforts, investment companies interested in buying into financial institutions have been scrutinizing banks both in terms of their balance sheets as well as management’s view on credit.
Because these are highly leveraged companies, small mistakes can have a disastrous effect on shareholder value, so we tend to spend a lot of time getting to know the management team and their credit culture, said Bernie Horn, president and portfolio manager of Polaris Capital Management based in the US.
Polaris manages a portfolio of more than $2.1 billion and has stakes in Asian banks such as State Bank of India, the country’s largest. The firm is increasingly looking to invest in other markets such as Japan, Korea and Thailand, currently, having invested about 20% of its total funds in Asia.
Polaris prefers financial institutions with more conservative culture and slower growth than ones with much faster growth compared to its peers or sector, even if the bank looks to be of great value.
"Polaris Global Value Deserves Consideration Even Though Its Record Won't Impress On First Look"
July 28, 2009
Mutual Fund Analyst Report: The fund had a rough time in both 2007 and 2008. It struggled in early 2009 as the bear market continued. However, prior to this stretch, the fund had regularly outperformed for years. And so far this year it is taking solid advantage of the rally; its 18.5% return through July 27 puts it ahead of roughly two thirds of its category peers.
It would be hasty to dismiss the fund. The prior success wasn't a brief fluke--manager Bernard Horn has been at the helm since the fund's 1998 inception, and for the 10 year time period, the fund has experienced strong results. That was achieved with a patient, contrarian process and a portfolio quite different from indexes. Such an approach has the best chance of providing long-term outperformance… This fund's approach is sound. The fund can be a rewarding long-term holding. But it may require patience at times.
"Taylor Better With Debt Than Share Sale, Polaris Says"
April 16, 2009
Taylor Wimpey, the U.K. homebuilder negotiating a financial rescue, can generate enough cash to meet repayments without a rights offering if it can maintain and increase sales, according to Polaris Capital Management. Polaris supports a share sale only when funds are needed or if Taylor Wimpey issued warrants or preferred stock prices at a future date when market have improved, commented Bernard Horn.
"Taylor Wimpey Lenders Support Rescue, Polaris Says"
March 2, 2009
Taylor Wimpey investor Polaris Capital Management says banks are very supporting of a financial rescue package, a sign that the risk of a debt-for-equity swap is diminishing. Polaris favors a refinancing deal and opposes boosting Taylor Wimpey’s cash through a share sale or direct investment from the Middle East.
The MSCI World Index ("MSCI") measures the
performance of a diverse range of global stock markets in the United
States, Canada, Europe, Australia, New Zealand and the Far East. The MSCI
is unmanaged and does include the reinvestment of dividends, net of
withholding taxes. The S&P 500 Index is a broad-based, unmanaged measurement
of changes in stock market conditions based on the average of 500 widely held common stocks. One cannot invest directly in an index. Price to cash flow is the ratio of a stock's latest
closing price divided by cash flow per share for the past 12
months.