Approach

Approach

WE ARE BIG PICTURE INVESTORS.

We seek to uncover innovation that leads to market leadership and long-term profit viability.

We view each company as a unique mosaic that encompasses our dominant investment beliefs.

In the Plumb Funds, we want to invest in stocks that we believe have the potential to grow. But to grow, companies need to be able to evolve and adapt to an ever changing environment.

As we research each prospective company, we ask ourselves these questions: Will it be a leader, a follower, or an innovator?

We carefully observe not only its products and services, but whether they have the potential to be ground-breaking. Or is this a company that will enable others to create disruption. Who else will benefit, and who or what might be displaced.

We look for three foundational concepts in our research:

[interactive_banner_2 banner_title=”SOLID SECULAR TAILWINDS” heading_tag=”h1″ banner_desc=”Difficult product or service to replicate” banner_image=”id^455|url^https://plumbfunds.com/wp-content/uploads/sites/107/2020/04/strong-secular-tailwinds.jpg|caption^null|alt^null|title^strong-secular-tailwinds|description^null” banner_style=”style13″ banner_color_title=”#ffffff” banner_color_desc=”#ffffff” banner_color_bg=”#480e67″ image_opacity=”1″ image_opacity_on_hover=”0.25″ banner_title_style=”font-weight:bold;” banner_desc_style=”font-weight:bold;”]
[interactive_banner_2 banner_title=”STRONG ORGANIC GROWTH RATE” heading_tag=”h1″ banner_desc=”Potential for robust free cash flow” banner_image=”id^456|url^https://plumbfunds.com/wp-content/uploads/sites/107/2020/04/strong-organic-growth-rate.jpg|caption^null|alt^null|title^strong-organic-growth-rate|description^null” banner_style=”style13″ banner_color_title=”#ffffff” banner_color_desc=”#ffffff” banner_color_bg=”#480e67″ image_opacity=”1″ image_opacity_on_hover=”0.25″ banner_title_style=”font-weight:bold;” banner_desc_style=”font-weight:bold;”]
[interactive_banner_2 banner_title=”SCALABLE BUSINESS MODEL” heading_tag=”h1″ banner_desc=”Market niche leadership” banner_image=”id^454|url^https://plumbfunds.com/wp-content/uploads/sites/107/2020/04/scaleable.jpg|caption^null|alt^null|title^scaleable|description^null” banner_style=”style13″ banner_color_title=”#ffffff” banner_color_desc=”#ffffff” banner_color_bg=”#480e67″ image_opacity=”1″ image_opacity_on_hover=”0.25″ banner_title_style=”font-weight:bold;” banner_desc_style=”font-weight:bold;”]

While the stock portion of the Plumb Balanced Fund and Plumb Equity Fund are managed similarly, the Balanced Fund strives to moderate risk by adding a bond component.

Perhaps unlike most others, we believe that growth from stocks also offers the potential to moderate risk if one can find stocks that offer consistent growth even in difficult markets.

[interactive_banner_2 banner_title=”TOM PLUMB ON THE PLUMB FUNDS” heading_tag=”h1″ banner_desc=”Innovation and the ability to change and prosper is the hallmark of a great company… and we believe, a great investment for our Funds.” banner_image=”id^482|url^https://plumbfunds.com/wp-content/uploads/sites/107/2020/04/tom-plumb-video.jpg|caption^null|alt^null|title^tom-plumb-video|description^null” banner_link=”url:https%3A%2F%2Fplumbfunds.com%2Fplumb-funds-approach%2F|title:Plumb%20Funds%20approach||” banner_style=”style13″ banner_color_title=”#ffffff” banner_color_desc=”#ffffff” banner_color_bg=”#480e67″ image_opacity=”1″ image_opacity_on_hover=”0.25″ banner_title_style=”font-weight:bold;” banner_desc_style=”font-weight:bold;”]
[interactive_banner_2 banner_title=”OUR PHILOSOPHY” heading_tag=”h1″ banner_desc=”We believe growth is the most important component of a portfolio. Volatility is inherent in stocks. By utilizing bonds and other tools when appropriate, we can best provide the balance our shareholders need.” banner_image=”id^483|url^https://plumbfunds.com/wp-content/uploads/sites/107/2020/04/our-philosophy.jpg|caption^null|alt^null|title^our-philosophy|description^null” banner_style=”style13″ banner_color_title=”#ffffff” banner_color_desc=”#ffffff” banner_color_bg=”#480e67″ image_opacity=”1″ image_opacity_on_hover=”0.25″ banner_title_style=”font-weight:bold;” banner_desc_style=”font-weight:bold;”]
[interactive_banner_2 banner_title=”OUR APPROACH” heading_tag=”h1″ banner_desc=”Our intense research focuses on innovation and market leadership. We seek to deliver solid risk-adjusted returns over the long-term by maintaining a strong discipline of balance through changing market conditions.” banner_image=”id^484|url^https://plumbfunds.com/wp-content/uploads/sites/107/2020/04/our-approach.jpg|caption^null|alt^null|title^our-approach|description^null” banner_style=”style13″ banner_color_title=”#ffffff” banner_color_desc=”#ffffff” banner_color_bg=”#480e67″ image_opacity=”1″ image_opacity_on_hover=”0.25″ banner_title_style=”font-weight:bold;” banner_desc_style=”font-weight:bold;”]

Our portfolios are diversified by company size, or market capitalization, which means we own large, medium and small businesses. Today, while somewhat more than half of our stock holdings are in large capitalization companies, we are continuing to find more investment opportunities in small and medium capitalized businesses.

BUY STRATEGY INDICATORS:

  • Favorable market/economic conditions for industry
  • Strong balance sheets with high cash flows which can be an indicator of a company’s ability to self-fund new projects
  • Experienced & capable management team
  • Market price at discount to our proprietary estimates of value

SELL STRATEGY INDICATORS:

  • Increase in market value
  • Potential catalyst for recovery is no longer evident
  • Deterioration of fundamentals not yet reflected in market price
  • More compelling alternatives exist with better quality or larger discount to value

Our investment philosophy, supported by extensive security investment research, drives the selection process. We look for growing companies which fall into our investable theme, striving to purchase them at reasonable prices with a goal to outperform over entire business cycles. We believe that this produces an attractive risk-adjusted return for our clients and shareholders.

WISCONSIN CAPITAL MANAGEMENT

Advisor to the Plumb Funds

For more the 30 years, Wisconsin Capital Management has provided individual portfolio management to individuals, companies and institutions.

Through the years, Wisconsin Capital’s clients desired access to the same investment management style through mutual funds. For two decades, that access was offered through the Thompson Plumb Balanced Fund, later known as the Dreyfus Premier Balanced Opportunity Fund sub-managed by Wisconsin Capital Management, LLC.

Today, Wisconsin Capital Management manages mutual funds through Wisconsin Capital Funds, better known as the Plumb Funds.

The goal of the Plumb Funds is to bring shareholders the advantages of the investment discipline Wisconsin Capital Management clients have come to appreciate, through the convenience of a mutual fund structure.

Mutual fund investing involves risk. Principal loss is possible.

The Funds may invest in smaller companies, which involve additional risks such as limited liquidity and greater volatility. The Funds may invest in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. Growth stocks typically are more volatile than value stocks; however, value stocks have a lower expected growth rate in earnings and sales. Temporary Defensive Positions: Under adverse market conditions the Fund could invest a substantial portion of its assets in US Treasury securities and money market securities which could reduce the benefit from any upswing in the markets.

The Plumb Balanced Fund will invest in debt securities, which typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investment by the Fund in lower-rated and non-rated securities presents a greater risk of loss to principal and interest than higher-rated securities. Investments in Asset Backed and Mortgage Backed Securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. The Fund may engage in short-term trading, which could produce higher transaction costs and taxable distributions and lower the fund’s after-tax performance.

Diversification does not assure a profit nor protect against loss in a declining market.

Investment performance reflects fee waivers. In the absence of these waivers, returns would be reduced.

Any tax or legal information provided isn’t an exhaustive interpretation of some of the current income tax regulations. Investors must consult their tax advisor or legal counsel for advice and information concerning their particular situation. Neither the Fund nor any of its representatives may give legal or tax advice.

References to other mutual fund products should not be interpreted as offers of those securities.

The Funds' investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus contains this and other information about the Funds. You may obtain a free hard-copy version by calling 1-866.987.7888 or you may download a prospectus here. Read it carefully before investing.

The Plumb Funds are distributed by Quasar Distributors, LLC.

Wisconsin Capital Management, the advisor to the funds, is a registered investment advisory firm based in Madison, Wisconsin, founded in 1984. Plumb Funds is a registered trademark of Wisconsin Capital Funds, Inc.