"We use our own research and expertise in seeking to capitalize on M&A activity in the U.S. banking industry, focusing on smaller cap financial services companies."
- Anton Schutz, Portfolio Manager since inception
While many of the funds that focus on this sector invest mainly in industry giants, the Burnham Financial Services Fund seeks out opportunities among lesser known financial institutions, particularly regional savings and loans. Because these companies typically are followed by fewer analysts, there is a greater potential for identifying opportunities others have missed. These range from stocks that appear temporarily undervalued, to those that may be targets for acquisition by larger companies. (In contrast, the Burnham Financial Industries Fund invests primarily in financial services companies without regard to market capitalization.)
Using proprietary research techniques, we seek out financial services stocks in regions across the country, and in a range of financial industries, including banks, thrifts, brokerage firms, insurance companies, and asset management firms. The manager also looks for firms that forge cost-effective partnerships, buy back their own stock, generate strong cash flow, and/or have "hidden assets" that are not reflected in current stock prices.
Past performance is not a guarantee of future results. Investment return and principal value will fluctuate with market conditions and an investor's shares, when redeemed, may be worth more or less than their original cost.