Ensemble Fund
Annual Letter
October 31, 2021
The Ensemble Fund (the “Fund”) returned 45.21% for the fiscal year ended October 31, 2021. For comparative purposes, the S&P 500® Index, which is the Fund’s benchmark, had a total return of 42.91% over the same time period.
The Fund began the fiscal year outperforming the S&P 500® Index up until the end of February. The Fund then underperformed the market through the middle of June at which point it trailed its benchmark by 2.85%. From mid-June onward, the Fund outperformed as interest rates rose, and we believe our portfolio of high-quality companies is well positioned to manage higher interest costs, higher wages, and inflated input costs given their competitively advantaged business models and strong pricing power that allows them to raise prices as needed to offset increased costs.
During the fiscal year, we owned 24 different companies of which all but one generated a positive return for the Fund.
Significant detractors from the Fund’s total return included the following:
Significant contributors to the Fund’s total return included the following:
The economic expansion that played out in 2021 was the strongest expansion since WWII. Our portfolio of competitively advantaged companies, many of which benefit from economically sensitive business models, saw rapid growth in revenue and earnings. As global supply chains struggle to keep up with surging demand and employers battle for scarce labor to support their growth, competitive advantages will be even more important than in normal times.
You can read more about our views on the economy and markets, as well find in depth profiles of our portfolio holdings, in our quarterly letters posted to www.EnsembleFund.com/news/investor-communications, as well as by following the Intrinsic Investing blog, published by Ensemble Capital Management, the Adviser to the Fund, at www.IntrinsicInvesting.com.
Past performance does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted. Performance data current to the most recent month end are available by calling 1-800-785-8165.
Investors should consider the investment objectives, risks, and charges and expenses of the Fund carefully before investing. The prospectus contains this and other information about the Fund. You may obtain a prospectus at www.EnsembleFund.com or by calling the transfer agent at 1-800-785-8165. The prospectus should be read carefully before investing.
An investment in the Fund is subject to investment risks, including the possible loss of the principal amount invested. There can be no assurance that the Fund will be successful in meeting its objectives. The Fund invests in common stocks which subjects investors to market risk. The Fund invests in small and mid-cap companies, which involve additional risks such as limited liquidity and greater volatility. The Fund invests in undervalued securities. Undervalued securities are, by definition, out of favor with investors, and there is no way to predict when, if ever, the securities may return to favor. The Fund may invest in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. More information about these risks and other risks can be found in the Fund’s prospectus. The Fund is a non-diversified fund and therefore may be subject to greater volatility than a more diversified investment.
Fund Fees: No loads; 1% gross expense ratio. Distributed by Rafferty Capital Markets, LLC Garden City, NY 11530.
Investors should consider the investment objectives, risks, and charges and expenses of the Fund carefully before investing. The prospectus contains this and other information about the Fund. You may obtain a prospectus on this website or by calling the transfer agent at 1-800-785-8165. The prospectus should be read carefully before investing.
Important Risk Information
An investment in the Fund is subject to investment risks, including the possible loss of the principal amount invested. There can be no assurance that the Fund will be successful in meeting its objectives. The Fund invests in common stocks which subjects investors to market risk. The Fund invests in small and mid-cap companies, which involve additional risks such as limited liquidity and greater volatility. The Fund invests in undervalued securities. Undervalued securities are, by definition, out of favor with investors, and there is no way to predict when, if ever, the securities may return to favor. The Fund may invest in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. More information about these risks and other risks can be found in the Fund’s prospectus. The Fund is a non-diversified fund and therefore may be subject to greater volatility than a more diversified investment.
Distributed by Arbor Court Capital, LLC member FINRA/SIPC.