Why Consider a Focused Fund?

In this video, Mitchell Appel discusses why investors should consider a Focused Fund, a “best ideas” portfolio of 25-50 positions. As a core holding or satellite position, we believe the Value Line Focused Funds can serve as an excellent addition to investors’ portfolios.


Transcript:

Hello, I’m Mitchell Appel, President of the Value Line Funds and I’d like to welcome you to our fund family.

As one of America’s oldest mutual fund companies, the Value Line Funds have been helping investors to achieve their financial goals for over 60 years. We aim to provide quality investment products that are easily understood and have the opportunity to generate above average performance over time and to do so with less relative risk.

With a fund line-up that has many highly rated funds, I would like to draw your attention to the two Value Line Focused Funds: The Value Line Mid Cap Focused Fund and the Value Line Larger Companies Focused Fund.

Why should you consider a Focused Fund? With a more limited number of holdings, managers are highly selective in choosing which stocks to holdings. Less holdings provide an opportunity to produce additional alpha (the excess return over an index). Our Focused strategies have 25-50 positions, a level that we believe still provides a diversified portfolio.

Focused Funds can be held as a core holding, or a satellite position. In either case, you want a “best ideas” portfolio providing you a Fund that is highly selective and providing you additional exposure to a category.

The Value Line Mid Cap Focused Fund is comprised of companies generally have a 10 year or more history of both earnings and stock price growth and, as a result of this impressive performance, their risk profile is generally lower.

Our second focused fund, the Value Line Larger Companies Focused Fund represents our “Best Ideas” in the universe of large, well-known companies. The portfolio is also concentrated and includes growth companies with strong brands and dominant business lines. With their faster growing revenue and earnings characteristics, we believe these companies have the opportunity to produce out-sized returns relative to other larger companies.

We believe that both the Mid Cap Focused Fund and the Larger Companies Focused Fund can serve as excellent additions to investors’ portfolios.

With Value Line Funds, investors can be confident that we are straightforward in our investment approach. We understand how important your money is, and we value your trust and confidence in us.

As you explore our website, I encourage you to take a look at our shareholder newsletters, read our portfolio manager commentaries and download information on each of our Funds.

Thank you again for your interest and we look forward to welcoming you to the Value Line Funds.