About Yorktown Funds

Time-tested principles. Forward-looking solutions.

Investment Process

At Yorktown Funds, the investment process is built on the following pillars.

  1. Strategic Diversification
  2. Rigorous Analysis
  3. Long-term Perspective and Owner’s Mindset
  4. Nimble Execution

Strategic Diversification

Yorktown’s active, open-architecture process accommodates a strategically diversified approach that does not place restrictions on size, geography or investment type. We invest in what we believe to be superior companies with open-ended opportunities and competitive advantages in each category, while eliminating those that lag. The entire process requires inclusion of new and developing areas of strength in the global market place.

This approach enables us to identify companies that we believe offer the best opportunities and give each of them full,

equal weighting, regardless of capitalization. As a result, our portfolios are generally more diversified than many capitalization-weighted indices, which tend to focus on a clearly defined market segment, over-weight large companies and under-weight small companies. We have found that portfolios that hold fewer securities than the benchmark to which they are compared tend to be more volatile and fail to achieve superior performance over the long term.

We believe that trying to beat the market in the short term by focusing on what’s in a portfolio ignores the most important aspect of a portfolio—
what is left out.

Rigorous Analysis

Diversification can be a powerful risk management tool, but we believe for it to be truly effective it must be integrated into a well-defined, disciplined process that relies on fact, not speculation. We employ a rigorous research process that seeks to identify companies that are successful and will continue to be successful for the right reasons.

Three Key Factors


  • Buy Factors
    Historically attractive valuations relative to the security’s trading history and growth
  • Warning Signals
    Historically high valuations relative to the security’s trading history and growth
    15% or greater price decline


  • Buy Factors
    Strong, stable management
    Good growth momentum
    Strong product
  • Warning Signals
    Significant management changes
    Product/process obsolescence
    Declining market share


  • Buy Factors
    Stable economic environment
    Strong currency
  • Warning Signals
    Growing inflation in the area
    Political/social unrest

Long-Term Owners Mindset

Our job is to live in the future, informed by the past and present. We monitor long-term trends that can take place across many years and multiple business cycles, such as demographics, technology, health and energy.

We believe the market, while irrational and random in the short term, is

rational in the long term. We employ a disciplined process informed by a long-term business owner mindset. We invest alongside our clients and believe that success overs the long haul requires effort, flexibility, intuition and discipline.

Nimble Execution

Because of our size and structure, we are able to take advantage of ideas that may not be available by the time other slower and more bureaucratic firms get around to them. Our nimbleness and speed to response enables us to act more opportunistically as we apply compelling research ideas to real-world investment solutions.