Investment Managers – Mutual Series

History & People

Mutual Series has recorded well over 60 years of successful investing. It began in 1949 when four original investors each contributed $25,000 to form Mutual Shares, one of the earliest mutual funds.

With a lengthy and proven track record, our present day investment strategies are managed and supported by a team of experts who are devoted to uncovering deep value. This niche involves such specialization as a bankruptcy team that focuses specifically on defaulted securities.

This strict deep value approach - wherein our astute and specialized team of portfolio managers and analysts find ways to turn adversity into profits - not only enhances the likelihood of upside potential but also helps reduce the risk of substantial declines.

Philosophy

Mutual Series is dedicated to a unique style of deep value investing, searching aggressively for opportunities among undervalued stocks, arbitrage situations, and distressed companies. As deep value investors, we focus on underlying asset value, potential catalysts and long-term intrinsic value creation, in addition to looking for solid assets undervalued by the market. These undervalued positions could be companies involved in mergers or acquisitions, spin-offs, financial reorganizations, or other special situations.

This time-tested commitment to value provides the foundation of our portfolios, and gives them resilience in virtually any type of market environment.

Investment Process

At Mutual Series, we are committed to our distinct, three-pronged investment approach. First, we construct the bulk of our investment portfolio with a solid base of what we believe are undervalued equities. We seek to invest in fundamentally strong companies with robust balance sheets, high quality assets, and shareholder-oriented management teams whose stocks are trading at material discounts to our assessment of their intrinsic value. Second, we work to enhance Mutual Series' portfolios with carefully selected investments in distressed or bankrupt companies. Often, when companies are reorganized in bankruptcy, owners of the old securities are repaid in securities of the new, stronger companies that emerge. Third, we seek to participate in risk arbitrage situations, but only in announced takeover deals - another area of highly specialized investing.

Finding the hidden value in companies that others have overlooked requires a particular dedication. Once we have identified an opportunity, our team takes an ongoing and active interest in the company to reduce risk and to help management increase shareholder value. Mutual Series analysts find out what a company owns, identifies inefficiencies, and the catalysts that might enable a company's true value to be realized. This specialized approach to deep value investing has proved itself through market downturns as well as upswings.