AmericaFirst Launches the Large Cap Share Buyback Fund

Portfolio Manager Rick Gonsalves Discusses the Strategy

Rick Gonsalves

​​Based on the belief that a Company’s management team knows more about its future than any Wall Street analyst, the AmericaFirst Large Cap Share Buyback Fund (symbols SBQIX, SBQAX, and SBQUX) was born.

“The Fund is very unique in that it combines the historical advantages of share buyback with other time-tested strategies such as price momentum, low beta and earnings growth. Currently, the fund owns an equal-weighted portfolio of 25 large company stocks with an average buyback ratio exceeding 5 percent,” said Rick Gonsalves, the Fund’s Portfolio Manager. “In essence, the Large Cap Share Buyback Fund invests in companies confident enough to invest in themselves.”

Rick Gonsalves added, “Numerous studies have shown that companies who purchase their own shares of stock over a 12-month timeframe have outperformed the broad indices with less downside risk. Many of these same studies are quick to point out that companies with over a 5 percent buyback ratio tend to outperform even further.”

If a company is confident enough to invest in itself, why shouldn't we? After all, a Company's own management team knows more about itself than any Wall Street analyst.

Rick Gonsalves

Portfolio Manager

In light of the most recent changes to the tax code, there may be advantages to investors seeking stocks of Companies that participate in share repurchase programs. To learn more about the AmericaFirst Large Cap Share Buyback Fund, call 916-787-9940.

AmericaFirst Capital Management is a Sacramento, California-based Registered Investment Advisor established in 2007 that manages six mutual funds and has sub-advised nearly 20 unit investment trusts. Rick Gonsalves is the Portfolio Manager and has won numerous awards for performance versus peers.

Important Disclosures:

Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund. This and other important information about the Fund is contained in the prospectus and summary prospectus, which can be obtained at www.AmericaFirstFunds.com or by calling 866- 960-1355. The prospectus should be read carefully before investing.

Mutual Funds involve risk including the possible loss of principal. Stocks of companies that announce share buybacks are often anticipated to perform well because buybacks typically are a signal that a company’s management believes its shares are undervalued. This positive signal from management may cause the value of such shares to rise after the announcement. However, the announcement of a buyback may not be an accurate predictor of future share performance. Companies with large market capitalizations go in and out of favor based on market and economic conditions. Larger companies tend to be less volatile than companies with smaller market capitalizations. In exchange for this potentially lower risk, the value of the security may not rise as much as companies with smaller market capitalizations. Equity securities may fluctuate in value in response to the activities of individual companies and general market and economic conditions.

Increased portfolio turnover causes the Fund to incur higher brokerage costs, which may adversely affect the Fund’s performance and may produce increased taxable distributions.

AmericaFirst Funds are distributed by Foreside Fund Services, LLC.

Source: AmericaFirst


Categories: Finance, Mutual Funds

Tags: america first, investing, mutual funds, rick gonsalves, stock buyback, stock market