Frank Value Fund Q1 2024 Letter to Shareholders

The Frank Value Fund Institutional class returned 7.16% in the first quarter of 2024 compared to 8.11% for the Russell Midcap Value Index and 10.56% for the S&P 500 TR Index. Since fully integrating catalyst-unlocking value into the strategy in January 2022, Frank Value Institutional class produced a Total Return of 28.84%, Russell Midcap Value Index 7.32%, and S&P 500 TR Index 11.49%. Please see the end of this letter for more performance information.

Small Stock Shuffle

While the large-cap indices have been in a roaring rally since October 2023, several small companies were left behind. Naturally, our focus has been ensuring these targets have value-unlocking catalysts, significant growth, or both. Here are our most recent purchases:

  1. A money-transfer company growing revenue over 10% annually trading at a value price.
  2. REIT selling all its buildings with asset values realistically over 2x the current stock price.
  3. A technology company growing its revenue at about 15%, with a 7% dividend yield and hidden assets worth over 20% of market cap.
  4. Two small companies in the gaming industry, both likely to be sold in the next twelve months. Both are trading at a 50% discount to the average private market takeout valuation.

The Path Forward

Value unlocks require patience and expertise yet are difficult to appreciate in an equity market with all values rising rapidly. Importantly, we now have historical precedent for what happens when the party ends: 2021 had its meme stocks, crypto-currency scams, and seemingly insatiable technology company buying. Yet, in 2022 the party ended badly, with a multitude of high-flying assets collapsing over 75% from their lofty peaks, while Frank Value Fund succeeded in its unique stock selection process and produced positive returns. How will 2024-25 be any different? Large cap growth companies again trade 30 to 100x earnings, and speculation has vengefully reemerged in dubious alternative assets. Happily, our catalyst-driven value portfolio is keeping pace with our benchmark, the Russell Mid Cap Value, but I believe Frank Value Fund’s true outperformance occurs when the “easy” money dissipates like in 2022. Exuberant froth will eventually give way to volatility, and once again we may see the hottest companies plummet over the precipice.


While we are pleased to deliver high returns to shareholders, we must remind clients that you cannot buy returns from the past. Only the future matters, and we believe our portfolio is again positioned for significant outperformance. The indices are relatively unchanging and becoming more and more expensive as prices outpace growth, but the Frank Value Fund exits positions as value (and gains) are unlocked. As detailed in the list above, the holdings are refreshed with our strict criteria and set up for a bright future.


Brian Frank – Frank Value Fund Portfolio Manager

Performance as of 3/31/24Total ReturnAverage Annualized Total Returns
 YTD 2024202320223 Yr. %5 Yr. %Since 7/21/04 %
Frank Value Fund7.1615.134.439.929.846.96
Russell Midcap Value Index8.1113.44-12.036.809.949.53
S&P 500 Total Return Index10.5626.29-18.1111.4915.0510.39

* Represents an estimate based on the performance of the Fund’s Investor share class, adjusted for fees.

Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. You may obtain performance data current to the most recent month-end by calling the Fund at 1-888-217-5426 or visiting our website at Returns include reinvestment of any dividends and capital gain distributions.

Non-FDIC insured. May lose value. No bank guarantee. The Fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the Fund, and it may be obtained by calling 1-888-217-5426.   Please read it carefully before you invest or send money.

This publication does not constitute an offer or solicitation of any transaction in any securities. Any recommendation contained herein may not be suitable for all investors. Information contained in this publication has been obtained from sources we believe to be reliable, but cannot be guaranteed.

The information in this portfolio manager letter represents the opinions of the individual portfolio managers and is not intended to be a forecast of future events, a guarantee of future results or investment advice. Also, please note that any discussion of the Fund’s holdings, the Fund’s performance, and the portfolio managers’ views are as of April 8, 2024 and are subject to change without notice.