Commentary

Commentary

23Apr

“Let’s Go Hunt For Snipe!”

Market Comments After a long absence, volatility returned to the equity market this past quarter. In our previous quarterly commentary “The Flip Side” we wrote.. Read More →
11Jan

“The Flip Side.”, Quarterly Letter, Q4 2017

Market Comments “The Road Goes on Forever, And the Party Never Ends.” Robert Earl Keen Houston-based singer-songwriter Robert Earl Keen penned what is arguably his.. Read More →
14Dec

2017 Year-End Distributions

  Distributions as of December 14, 2017 Per share short-term capital gains range Per share long-term capital gains range Per share net investment income Record Date.. Read More →
03Dec

2017 Capital Gains Estimates

Castle Investment Management is pleased to provide you with this estimate of capital gains distributions for the Castle Focus Fund.  We are providing you with.. Read More →
23Oct

“At The Risk Of Sounding Like A Broken Record…”, Quarterly Letter, Q3 2017

Market Comments Do kids today even know what a ‘broken record’ sounds like? Now that nearly all music is on our phones and other devices,.. Read More →
12Jul

“Being Careful. Being Prepared.”, Quarterly Letter, Q2 2017

Market Comments In broad strokes, our investment process is based on the principles of being careful and being prepared. We invest when we can identify.. Read More →
04May

“What’s Today’s Story?”, Quarterly Letter, Q1 2017

Market Comments The beta for the Castle Focus Fund (MOATX) for the last five years is 0.55 versus the S&P 500. We start our quarterly.. Read More →
20Mar

Market Commentary — Yellow Jessamine

“In tangled wreaths, in clustered gleaming stars, In floating, curling sprays, The golden flower comes shining through the woods These February days” Yellow Jessamine, by.. Read More →
10Jan

“An Ever-Changing Narrative”, Quarterly Letter, Q4 2016

Market Comments “No warning on earth can save people determined to grow suddenly rich.” —Lord Overstone When newspapers and reporters declare the stock market is.. Read More →
16Dec

2016 Year-End Distributions

  Distributions as of December 15, 2016 Per share short-term capital gains range Per share long-term capital gains range Per share net investment income Record Date.. Read More →
12Oct

“Do You Know TINA?”, Quarterly Letter, Q3 2016

Market Comments ”The problem with Cassandras, such as Gross and Jim Grant and Stanley Druckenmiller, among a host of others, is that they can be.. Read More →
17Aug

Portfolio Manager Commentary — ITC Holdings Corp. and Royal Gold, Inc.

As we have in the past, we will start this short commentary with a brief overview of our investment process: We put shareholder cash to.. Read More →
13Jul

“Flightlessness”, Quarterly Letter, Q2 2016

Market Comments Before the arrival of humans—and the rats, cats, and other predators that we brought—New Zealand was an idyllic haven for birds. Without ground-dwelling.. Read More →
19Apr

“Is it a Duck or is it a Rabbit?”, Quarterly Letter, Q1 2016

Market Comments “All of humanity’s problems stem from man’s inability to sit quietly in a room alone.” —Blaise Pascal When the dermatologist saw the spots.. Read More →
11Jan

“Is The Future More Certain Than The Present?”, Quarterly Letter, Q4 2015

Market Comments “If you’re not confused, you don’t know what’s going on.” —an old Haitian proverb To download a PDF of this report, click here. Confusion.. Read More →
16Dec

2015 Year-End Distributions

To download a PDF of this report, click here... Read More →
14Oct

“Tailwinds become Headwinds”, Quarterly Letter, Q3 2015

Market Comments “In a time of universal deceit, telling the truth is a revolutionary act.” —George Orwell The S&P 500 fell 6% from August 17.. Read More →
15Jul

“The Magic of Flooding the Farm with Fertilizer”, Quarterly Letter, Q2 2015

Market Comments  “Everything that needs to be said has already been said. But since no one was listening, everything must be said again.” —André Gide.. Read More →
10Apr

“Sound Intellect And Emotional Discipline”, Quarterly Letter, Q1 2015

Market Comments “A thing long expected takes the form of the unexpected when at last it comes.” —Mark Twain The bull market in stocks turned.. Read More →
07Jan

“Feedback Investors and Electric Shocks”, Quarterly Letter, Q4 2014

 Market Comments “As I think back over the years, I have been guided by four principles for decision making. First, the only certainty is that.. Read More →
19Dec

2014 Year-End Distributions

To download a PDF of this report, click here... Read More →
13Oct

“A Combination Of Gumption And Patience”, Quarterly Letter, Q3 2014

Quarterly Overview At quarter end, the Castle Focus Fund held 21 stock positions while cash and cash equivalents (“cash”) represented 34.60% of the Fund’s assets... Read More →
15Jul

“Delaying the Inevitable”, Quarterly Letter, Q2 2014

Market Comments  “Every age is fed on illusion.”  —Joseph Conrad “The recurrence of periods of boom which are followed by periods of depression is the.. Read More →
23Apr

Our Conservative Approach to Discounted Cash Flow

Our goal is to outperform the broad market over a full market cycle. While stocks can be very expensive at times, conversely they can be.. Read More →
08Apr

“I will gladly pay you Tuesday for a hamburger today”

First Quarter Letter Market Comments “Deviating too far from consensus leaves one feeling potentially ostracized from the group, with the risk that one may be.. Read More →
25Feb

Portfolio Manager Commentary — Western Union (WU)

As value investors who operate with a long investment time horizon, one of the most important characteristics we look for when selecting stocks for the.. Read More →
07Jan

“The Price Action Of Stocks Trumps Fundamentals”, Quarterly Letter, Q4 2013

Fourth Quarter Letter market Comments Perhaps the best argument that one can make for stocks is that many hold doubts about the continuing bull market... Read More →
19Dec

2013 Year-End Distributions

December 19, 2013   To download a PDF of this report, click here... Read More →
21Nov

Portfolio Manager Commentary — Paychex Corp. (PAYX)

We have completed the sale of Paychex Corp. (PAYX) from the Fund’s portfolio at an average sales price of $41.04 per share. As with many.. Read More →
07Oct

“Ted Williams, Ford F-150’s, and Market Valuations”, Quarterly Letter, Q3 2013

Third Quarter Letter Market Comments “We will learn an enormous amount in a very short time, quite a bit in the medium term, and absolutely.. Read More →
01Aug

Portfolio Manager Commentary — Exelon (EXC)

During the second week of July we closed our long suffering position in Exelon. Our fundamental investment thesis on Exelon centered on the power generating.. Read More →
15Jul

Portfolio Manager Commentary — “Risk Communicates Signals that Something Important is at Stake”

Second Quarter Letter  Market Comments The equity markets hit new all-time highs again this past quarter. However, we believe this rally is largely due to.. Read More →
04Apr

Portfolio Manager Commentary — “Can You See The Gorilla?”

First Quarter Letter Market Comments “We all know it’s going to end badly, but in the meantime we can make some money…”  –Jim Cramer, CNBC.. Read More →
27Mar

Portfolio Manager Commentary — “Prediction is very hard, especially about the future”

A recent Wall Street Journal article on value investing caught our attention (Jason Zweig, February 15, 2013), as Jean-Marie Eveillard of First Eagle Funds summed.. Read More →
18Jan

Portfolio Manager Commentary — Understanding Cash

The Castle Focus Fund (MOATX) finished the year 2012 up 2.57% while the S&P 500 was up 16.00%. Some of our underperformance was attributable to.. Read More →
09Jan

“Patient Opportunism”, Quarterly Letter, Q4 2012

Fourth Quarter Letter  Market Comments Benjamin Graham, the father of value investing, once theorized that speculators prosper through ignorance, as knowledge is not necessary during.. Read More →
21Dec

2012 Year-End Distributions

Distributions as of December 20, 2012 To download a PDF of this report, click here... Read More →
17Dec

QE, Bank Balance Sheets and Relative Performance

At St. James Investment Company (sub-advisor to the Castle Focus Fund) we best describe our investment process as a long-only approach to absolute-return investing. Our.. Read More →
26Nov

Portfolio Manager Commentary — Skill vs. Luck

In Michael Lewis’ Moneyball, the Oakland A’s took a critical look at the role of the statistics generated by the baseball players they evaluated. By.. Read More →
29Oct

Castle Focus Fund Expense Ratio Reduced

Alexandria, Virginia (October 29, 2012) – Castle Investment Management, LLC, the Advisor to the Castle Focus Fund (MOATX), is pleased to announce that it is.. Read More →
17Oct

Portfolio Manager Commentary — Wal-Mart Stores, Inc. (WMT)

The most controllable determinants of investment returns are the level of valuation at which investors choose to initiate their investment and the level of valuation.. Read More →
09Oct

“Abiding by the First Rule”, Quarterly Letter, Q3 2012

Third Quarter Letter Market Comments There is an old saying that the definition of insanity is doing the same thing over and over again and.. Read More →
09Jul

Portfolio Manager Commentary — “Unknown Unknowns”

Many market strategists and traders began the year accepting the premise that the United States was experiencing a self-sustaining recovery. Nearly every economic release was.. Read More →
17Apr

Portfolio Manager Commentary — “What Else Am I Going To Do?”

The S&P 500 finished the first quarter with its biggest gain since 1998, up 12%.  Technology stocks rose 21.1% with financials up 21.5%, leading all.. Read More →
09Aug

Portfolio Manager Commentary — Market Comments, August 9, 2011

The recent S&P downgrade of U.S. debt, coupled with the increasingly problematic sovereign debt situation in Europe, has brought about broad-based equity selling as investors.. Read More →