Everyone invests for a purpose - whether it’s to fund a college education, new home or retirement. Whatever the reason, we understand that our shareholders count on us to help them reach their goals. They trust us not just with their money, but with the promises they make to themselves, their children, and their grandchildren.
Since its inception as a closed-end fund in 1929, Adams Express has maintained a disciplined, long-term investment approach. We have concluded that this steady, reasonable approach works through most economic environments, and has allowed our fund to deliver uninterrupted dividends since 1935.
Our Approach Has Endured
When Adams Express was established as a closed-end fund in 1929, the founders identified five fundamental strategies to their investment approach. Over the years, all seven of the fund managers have adhered to these strategies. The results have been steady growth – in most years, meeting or exceeding the returns of peer benchmarks.
Reliable Returns, Long-Term
Our core value is that the wisest investment approach is to look long-term. This approach allows us to seek out quality investments, to buy and hold them on our terms rather than being driven by the effects of market gyrations and investor sentiment. We hold on to investments for an average of 8 years; and in some cases, have held shares in companies in excess of 20 years.
Meticulous Research Drives Decision-Making
Successful investment decisions start with the accumulation of quality, in-depth objective data. That’s why, unlike many other funds, we have a team of in-house analysts. Our analysts and fund managers dig deep into figures, records, and facts. Our bottom up approach to investing allows the analysts to guide the fund managers as they evaluate and assess investment decisions.
So, what do our analysts look for in a company deemed worthy of investment? In general, there are four critical traits:
• Solid, stable management team
• Strong balance sheet
• Market leadership in their industries
• Promising potential with both existing and future product offerings
Staying in Control
One of the strengths of a closed-end structure is that it allows us to maintain control of our buy/sell approaches. Since we work with a fixed pool of investment dollars and do not have to worry about capital inflows or outflows, we can track individual companies within our portfolio and decide when the time is right to either get in or get out. This control explains our low portfolio turnover rate. And rather than have our hands forced when the markets fluctuate wildly, as some open-end fund managers do, we are better able to stay the course.
Steady As She Goes
We minimize risk in Adams Express by being diversified. With some exceptions, most of the companies in the portfolio of approximately 70-80 stocks represent less than 2% of the Fund's portfolio. On top of that, we don’t take any undue risks in our portfolio. We avoid leverage and have not invested in auction-rate securities, because while they can enhance returns when the markets move up, the consequences can be catastrophic when the markets go down.
Shareholders First
Above all else, we manage the Fund knowing that we are serving our shareholders. We are always striving to find ways to increase shareholder value and to minimize expenses. The employees are shareholders with a vested interest in the Company’s performance. For us, managing the Fund is not just about the numbers. It is also about the investors who have entrusted us with their hopes, their dreams, their goals.
We value our investors' trust in us, and we are committed to safeguarding that trust at every turn.