Woodworth Contrarian Fund - A Long/Short Equity Strategy

This is Why Woodworth Contrarian Fund is the Right Strategy for you

When the market counts a company down and out, we take a second look. Contrarian value-based investing for the long run.

In addition to our meticulous strategy and proven performance, our approach to managing your investment is built on a close, personal, and transparent partnership with you.

“There are two times in a man's life when he should not speculate: when he can't afford it and when he can.”

Mark Twain

Understanding the difference between investment and speculation is the first step in achieving investment success.

At The Oregon-Based Woodworth Contrarian Fund, we meet the long-term needs of investors seeking aggressive returns by allocating a portion of your overall investments. We manage our portfolio directly - trained as true stock pickers with a contrarian focus - which is a rarity in a world filled with market averages, ETFs, and derivatives. We meet with companies and their management, attend earnings calls, and perform deep-dives into company financials on a regular basis. We stay nimble & diversified, with an ability to pivot as the market changes.

A contrarian believes that crowd behaviors among investors lead to exploitable mispricings in securities markets. Widespread pessimism about a stock can drive a price so low that it overstates the company's risks (we look for stretched rubber-bands), and understates its prospects for returning to profitability. Identifying and purchasing such distressed stocks, and selling them after the company recovers, can lead to above-average gains. Conversely, widespread optimism can result in unjustifiably high valuations that will eventually lead to a drop if and when those high expectations don't pan out.

The stock market becomes increasingly saturated by institutional investors every day. The majority of the market is occupied by a handful of banks, bots, asset managers, and private equity firms who primarily invest in large companies with perceived future growth. However, value is determined intrinsically by current measures of assets and profitability relative to market sentiment, not future potential. A contrarian knows that this crowd behavior among institutional investors leads to exploitable mispricings among existing value. We apply a rigorous, analytics based, contrarian investment strategy to discover upside missed by the institutional investors and exploit their assumptions. Our portfolio consists of value-based, out-of-favor, high yielding, low-debt companies. It is balanced to achieve aggressive capital appreciation while minimizing long-term downside risk.

Buying out-of-favor-companies when they’re cheap can seem like obvious financial wisdom but, most financial institutions take a different approach. Banks, analysts, and large asset managers are often cautious to do anything unusual because they don’t want to be held responsible for a mistake. This leads them to invest in large, stable companies that are popular in the market. Apple, Microsoft, and Amazon are great companies and everyone knows it. This makes them obvious buys and has caused their price to become expensive relative to their value. Instead, we look for companies that are unpopular with the market and overly punished. This allows us to take advantage of the pressures placed on typical mainstream investors.

Diversification is key to any successful long-term investing strategy. It protects an investor from major losses and allows them to capitalize on market swings. Due to the expanding financialization of all asset classes and the centralization of wealth, almost all indexes, mutual funds, and hedge funds are now correlated to the general market growth. Unlike most hedge funds, our investment team works tirelessly to ensure our growth is not correlated to the ebbs and flows of the larger market. Our uncorrelated returns provide investors with a valuable weapon in their portfolio.

DEEP ROOTS. STUBBORN GROWTH. OREGON BASED.