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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Hillman Value Fund 2024 Q3 Investor Letter | Buyside Digest

Back to Fund Profile (Hillman Value Fund)

Primary Source Intelligence • Q3 2024 Letter Analysis

Hillman Value Fund Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Hillman Value Fund. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

YTD+0.23%

Positioning StanceConstructive

Market CapLarge Cap

GeographyUS

Digest Analysis

Quick Take

"The 39-position portfolio targets enterprises with sustainable competitive advantages using disciplined valuation. Management reduced fees and maintains long-term focus despite near-term underperformance."

Executive Summary

The Hillman Value Fund returned 23.34% for the year ended September 30, 2024, underperforming the Russell 1000 Value Index return of 27.76%. The fund's core thesis centers on investing in enterprises with sustainable competitive advantages while maintaining disciplined valuation standards. Performance was driven by strong results in Information Technology, Communication Services, and Financials sectors, while Industrials and Health Care holdings weighed on returns. The fund's option writing strategy provided nominal performance benefits. The portfolio holds 39 positions with a 35% turnover rate, reflecting selective positioning across large-cap value opportunities. Management emphasizes that long-term outperformance requires accepting variability around benchmark returns, including periods of underperformance. The fund reduced its management fee from 0.85% to 0.70% effective February 2024. Top holdings include Bristol-Myers Squibb, US Bancorp, AT&T, DuPont, and Campbell Soup, representing nearly 30% of assets. The strategy maintains focus on fundamental analysis and patient capital deployment for sustainable long-term returns.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

45%

CautiousHigh

Moderate (45%)

The fund demonstrates moderate conviction through its concentrated top 10 holdings representing 29.68% of assets and clear investment philosophy around competitive advantages. However, the 39-position portfolio and lack of specific position sizing commentary limits conviction assessment. The standardized annual report format provides limited insight into individual holding conviction levels.

Growth Outlook

25%

BearishBullish

Bearish (25%)

The fund expresses mild optimism about long-term prospects, stating their investment approach should work well over time, but acknowledges current underperformance and the necessity of variability around index returns.

Risk Appetite

15%

DefensiveAggressive

Defensive (15%)

The fund maintains a fully invested stance with 39 holdings and continues option writing strategies, but the moderate portfolio turnover of 35% and acknowledgment of underperformance suggests measured risk appetite rather than aggressive positioning.

Capital Deployment

0%

De-riskingDeploying

De-risking (0%)

No information provided about cash level changes or deployment activity during the period. The 35% portfolio turnover suggests some rotation activity, but without cash flow data or explicit deployment commentary, the index remains neutral.

Forward Guidance

10%

CautiousExpansionary

Cautious (10%)

The manager provides limited forward guidance, focusing primarily on their long-term investment philosophy rather than specific deployment intentions or market timing views. The tone is patient and disciplined rather than action-oriented.

Language Signal

20%

BearishBullish

Bearish (20%)

Language is balanced with mild positive signals around sustainable competitive advantages and long-term discipline, but tempered by acknowledgment of underperformance and the necessity of accepting variability in returns.

Perceived Risk

15%

Low RiskElevated

Low Risk (15%)

Risk discussion is minimal, limited to acknowledging that long-term outperformance requires accepting periods of underperformance and variability around index returns. No macro risks or systemic concerns are identified in this annual report format.

Opportunity Density

40%

ScarceAbundant

Selective (40%)

Cannot assess opportunity density from this annual report format. The document focuses on performance attribution and holdings rather than discussing the current investment opportunity set or market conditions.

Time Horizon

70%

Short-TermLong-Term

Decade+ (70%)

The fund explicitly emphasizes long-term investment approach, stating their discipline should work well over the long term and accepting that outperformance requires variability including periods of underperformance. This suggests a multi-year investment horizon with patience for thesis realization.