Clipper Fund (CFIMX) In Focus

Clipper (CFIMX – MF report) a Zacks Ranked #2 (Buy) seeks to provide long-term capital growth and capital preservation. CFIMX seeks to achieve its objectives by concentrating investments in securities that, in the opinion of the adviser, are significantly undervalued. CFIMX looks for companies whose current price does not reflect the long-term intrinsic value of the business enterprise itself. Among such investments, the fund emphasizes the purchase of common stock, convertible long-term corporate debt obligations, convertible preferred stock, and warrants that the adviser believes are undervalued and appear to offer the potential of furthering the fund’s goal of long-term capital growth. Dividends and capital gains are distributed annually.

This Large Value fund, as of the last filing, allocates their fund in three major groups; Large Value, Large Growth, Emerging Markets. The fund’s top holdings are: Berkshire Hathaway Inc. (BRK-A), American Express Co. (AXP), and Bank Of New York Mellon Corp. (BK).  

The Clipper fund, managed by Clipper, carries an expense ratio of 0.74, and CFIMX requires a minimal initial investment of $2,500.

CFIMX has a history of strong positive total returns for over 10 years.  Specifically, the fund’s returns over the 1, 3, 5 year benchmarks; 1 year 2.25%, 3 year 15.40%, and 5 year 14.74%.  To see how this fund performed compared in its category, please click here.  

CFIMX’s performance, as of the last filing, when compared to funds in its category was in the top 29% in 1 year, top 24% over the past 3 years, and in the 49% over the past 5 years.