Jeff Auxier Asset Management – 'Hazelnuts, Cows… and Stocks'VW Staff
Auxier Asset Management’s letter to shareholders for the period ended 9/30/2014 titled ‘Hazelnuts, Cows… and Stocks.’
As of 9/30/14 the Stock Portion of the Investor Class, AUXFX, is Up 360% Since Inception, Growth of $10,000 to $29,500 Since Inception;
Auxier Continues Eating His Own Cooking and Preaching the Power of Compounding
News release continues after the following required disclosure information:
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. As stated in the current prospectus, the Investor Class Share’s annual operating expense ratio (gross) is 1.26%. The Adviser has contractually agreed to waive a portion of its fee and/or reimburse Fund expenses to limit Total Annual Fund Operating Expenses to 1.25% through October 31, 2015. Other share classes may vary. The Fund charges a 2.0% redemption fee on shares redeemed within six months of purchase. For the most recent month-end performance, please call (877) 328-9437 or visit the Fund’s website at www.auxierasset.com. The recent growth in the stock market has helped to produce short-term returns that are not typical and may not continue in the future.
The table below summarizes performance for the quarter, 1-yr, 5-yr, 10-yr and Since Inception as of September 30, 2014.
The graph shows the value of a hypothetical initial investment of $10,000 in the Fund and the S&P 500 Index on July 9, 1999 (inception of the Fund) and held through September 30, 2014. Fund returns (i) assume the reinvestment of all dividends and capital gain distributions and (ii) would have been lower during the period if certain fees and expenses had not been waived. Performance shown is for the Fund’s Investor Class shares; returns for other share classes will vary. Performance for Investor Class shares for periods prior to December 10, 2004 reflects performance of the applicable share class of Auxier Focus Fund, a series of Unified Series Trust (the “Predecessor Fund”). Prior to January 3, 2003, the Predecessor Fund was a series of Ameriprime Funds. The performance of the Fund’s Investor Class shares for the period prior to December 10, 2004 reflects the expenses of the Predecessor Fund.
Lake Oswego, Ore.—(December 2014) Whether he’s deciding what crops to plant on Auxier Family Farms, or choosing which stocks to pluck for his Auxier Focus Fund, 32 year investor Jeff Auxier (Trades, Portfolio) takes the long view. “Both farming and investing require similar skills, patiently researching, considering price, value and assessing risks. There are no shortcuts,” says Auxier. “Our focus is always on long term performance, and the power of compounding, which Einstein called the ‘greatest invention’.”
Auxier Focus Fund is up 360%
The stock portion of the $289 million Auxier Focus Fund is up 360% since inception (as of 9/30/2014), and the Fund has survived every market collapse since 1999. A voracious researcher (8-12 hours a day), Auxier travels the investment galaxy seeking what he deems is the best return with less risk–be it stocks, bonds, or treasuries, regardless of asset class. He holds no more than 3-5 percent position in any one stock or company and since inception has averaged a 73% exposure to equities. “Our idea is to compound investors’ savings at a risk they can tolerate,” says Auxier. “For us to keep people in the game, we keep a sharp eye on quantifying risk. Ours is a Fund for the patient, long-term investor, who appreciates the power of compounding.”
Continuing to eat his own cooking, with 100% of his personal retirement in his fund, Auxier will not sell a single share while manager, and each quarter, Auxier voluntarily undergoes a Global Investment Performance Standards examination for Auxier Asset Management (more than $700 million in assets, including AUXFX). “People need to know where their money is invested, whose investing it, and that their manager’s money is right in there with them.”
Auxier Family Farms
The long view from Auxier Family Farms is not far from the end of the Oregon Trial, on 108 bucolic acres in the epicenter of the nation’s hazelnut industry. It is far from the herd mentality of Wall Street. The beef and hazelnuts Auxier Family Farms and Auxier Resources produce, help feed a growing global demand for high quality protein. “Living here not only fosters independence of thought, but it exposes—at a true grassroots level—business in real-time, all along the food chain.”
Auxier is a contrarian, schooled by his financial rock star heroes like Buffett and Templeton
Fresh out of the University of Oregon School of Business, Auxier called them, and is still amazed they answered, sharing advice that continues to guide the Auxier Focus Fund today. Auxier became Senior VP of Investments, and Senior Portfolio Management Director for Foster Marshal/Smith Barney, serving with Jamie Diamond (now head of JP Morgan) on the first board that set national policy managing client accounts. In 1993, Auxier received the Consulting Group Bob Dwyer Award honoring ‘integrity and knowledge’. “I had 15 great years working with the nation’s top CFO and CEO leaders, but I wanted to create and run a fund that matched my own investment philosophy, with a focus on compounding, and a goal of protecting over the long haul. It’s a mission to help people that still drives me today.”
Auxier Focus Fund Performance Headlines:
- Up 195% since inception vs. 87.15% for the S&P. (7/9/1999-9/30/2014)
- Stock portion of AUXFX up 360% since inception. (7/9/1999)
- Life of Fund–7.37% vs. S&P 4.20%; 10 year—7.41% vs. S&P 8.11%; 5 year—10.96% vs. S&P 15.70%; 3 year—14.57% vs. S&P 22.99%; 1 year—10.66% vs. S&P 19.73%. (Average Annual Total Returns) Performance data quoted represents past performance and is no guarantee of future results.
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information about the Fund is in the prospectus, a copy of which may be obtained by calling (877) 328-9437 or visiting the Fund’s website. Please read the prospectus carefully before you invest.
The Fund may invest in value and/or growth stocks. Investments in value stocks are subject to risk that their intrinsic value may never be realized and investments in growth stocks may be susceptible to rapid price swings, especially during periods of economic uncertainty. In addition, the Fund may invest in mid-sized companies which generally carry greater risk than is customarily associated with larger companies. Moreover, if the Fund’s portfolio is overweighted in a sector, any negative development affecting that sector will have a greater impact on the Fund than a fund that is not overweighted in that sector. An increase in interest rates typically causes a fall in the value of a debt security (Fixed-Income Securities Risk) with corresponding changes to the Fund’s value.
The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on 500 widely held common stocks. One cannot invest directly in an index.
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