In selecting portfolio securities for the Fund, Granite will look for companies that have a unique competitive advantage; whose business models are simple and can be understood; have management teams the adviser thinks are trustworthy; have low debt and are not dependent upon borrowed money to conduct daily operations; and have the ability to generate significant free cash flow over a market cycle.
“Over the years we have had many prospective clients whose investment assets were not sizeable enough to be managed effectively in our separate account strategies,” said Scott Schermerhorn, chief investment officer of Granite Investment Advisors and the senior portfolio manager for the Fund. “The Granite Value Fund will be concentrated in those companies that we know extremely well and that exhibit high or improving returns on capital.”
Tim Lesko, a principal of the firm and senior member of the investment team, will also manage the Fund.
Investors can purchase the Fund directly or through brokerage platforms. The minimum initial investment for taxable accounts is $10,000 and $5,000 for non-taxable accounts.