Polaris Global Value Fund

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cnn money
"Banks Surge On $250B Investment Plan"
October 13, 2008
In an article referencing the U.S. government’s capital injection plan for the financial sector: Banks that have done an effective job of riding out the current market turmoil so far may not see the value in selling stakes to the government, noted Bernard Horn Jr., president and portfolio manager at the Boston-based Polaris Capital Management, which operates the Polaris Global Value Fund. The majority of medium sized institutions are still reasonably healthy, said Horn, whose firm manages about $3 billion.

bloomberg radio
"On The Money With Charlie Stein: Global Investing Trends"
October 10, 2008

boston globe
"With Eyes On Washington, Investors Reclaim Ground"
October 1, 2008
News of the Irish government taking action to shore up its financial institutions was received positively in Europe and may have had a positive effect in the U.S., according to Bernie Horn, president of Polaris Capital Management in Boston. Ireland said it would guarantee the deposits and debts of all its major banks, after an index of Irish stocks dropped 13% on Monday, Sept. 29th. Mr. Horn stated that such action settled Europe down a fair amount, and it provided a very well thought out, good example of how governments can actually play a role in fixing a big problem, which is a crisis in confidence.

morningstar
"Don’t Give Up On Polaris Global Value"
September 24, 2008
After years of outperforming the bulk of the competition in the world stock category, the Polaris Global Value Fund came up short in 2007 and much of 2008 according to Morningstar fund analysis. The Fund’s overall strengths remain intact. The portfolio is unusual as Mr. Horn searches for overlooked opportunities, particularly in midsize stocks and less-popular areas. It’s encouraging that the Fund didn’t own those stocks or insurers that became involved in the worst aspects of the credit crisis. Based on Morningstar analyst reports, the Fund’s approach can lead it into difficult situations at times, but its approach should pay off for patient shareholders over time.

dow jones newswires
"Polaris Capital’s Horn Hangs On In Rough Market"
September 8, 2008
As he attempts to ride out the storm in the turbulent stock market, Polaris Capital Management’s Bernard Horn, who has much of his own personal fortune tied up in the firm’s portfolios, says he remains confident that the stock picks may eventually win out. Many years of admirable returns in Polaris portfolios are backed by the tried and true tenets of value investing: invest in companies producing stable, diversified and undervalued streams of unencumbered cash. But with the collapse of the U.S. housing market and global credit crunch, traditional value picks have been hampered. Mr. Horn talks about his contrarian picks in U.S. and overseas financials as well as British homebuilders. He plans to hold on to his picks, which he calls the product of Yankee thrift, until other investors begin to look past their “emotional sense” and start looking at the companies themselves.

business week
"On The Lookout For Survivors"
July 7, 2008
While many investors search for the next skyrocketing technology or hot-selling product, the best opportunities may lie in industries beaten down by the weakening economy, high oil prices and the credit crunch. Companies that outperform in tough times tend to be great investments when conditions improve, according to Bernie Horn, fund manager of the Polaris Global Value Fund. For example: the crisis in financial stocks has created opportunities, as Mr. Horn has added shares of reinsurers such as Chubb and Munich Re. They haven’t engaged in price wars or invested in risky subprime securities, but are nevertheless being beaten up in this market, according to Mr. Horn.

morningstar
"Polaris Global Value Isn’t Always Easy To Own, But It’s Likely To Be Worth The Effort In The Long Run"
April 28, 2008
Polaris Global Value Fund manager Bernard Horn has been using the same value-based, low-turnover strategy that has served the fund well since 1989. The Fund had little exposure to banks tied into the subprime-loan crisis, but the Fund’s remaining banks stocks fell nonetheless. The Fund may have periods when it’s out of step with market favor, for Mr. Horn pays little attention to index weightings and tries to buy stocks when they’re being dismissed. According to Morningstar analyst Gregg Wolper, there’s reason to think 2007 isn’t a faithful indication of the Fund’s true potential.

the wall street journal
"Overseas Stocks Lose Their Magic"
February 24, 2008
According to Bernard Horn, manager of the Polaris Global Value Fund, international stocks are a better buy than the U.S., but they are still subject to further declines. Mr. Horn’s preference for non-U.S. shares is reflected in the Fund’s portfolio, with approximately 30% of assets in U.S. shares – less than the U.S. share of global market value, which is roughly two-fifths.

the motley fool
"Talking Global Investing With Bernie Horn"
January 17, 2008
In an e-mail interview, Mr. Bernie Horn shares his views about value investing, new investment opportunities, and concerns regarding China. He discussed the Polaris Global Value Fund’s unconstrained pure value equity selection process that is characterized as an active, all-capitalization investment approach. Polaris is considered a deep value manager; the Fund’s management believes that the best way to generate above average risk-adjusted returns is to wait for market fluctuations to produce undervalued companies. Although Polaris is coined as a "value investor," the Fund’s real strategy is to invest in companies that management believes are priced to give us a proper rate of return. From Polaris’ perspective, this is not just value investing: it is correct investing.

On June 1, 1998, a limited partnership managed by the adviser reorganized into the Fund. The predecessor limited partnership maintained an investment objective and investment policies that were, in all material respects, equivalent to those of the Fund. The Fund's performance for the periods before June 1, 1998 is that of the limited partnership and includes the expenses of the limited partnership. If the limited partnership's performance had been readjusted to reflect the first year expenses of the Fund, the Fund's performance for all the periods would have been lower. The limited partnership was not registered under the Investment Company Act of 1940 ("1940 Act") and was not subject to certain investment limitations, diversification requirements, and other restrictions imposed by the 1940 Act and the Internal Revenue Code, which, if applicable, may have adversely affected its performance.

The MSCI World Index ("MSCI") measures the performance of a diverse range of global stock markets in the United States, Canada, Europe, Australia, New Zealand and the Far East. The MSCI is unmanaged and does include the reinvestment of dividends, net of withholding taxes. The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One cannot invest directly in an index. Price to cash flow is the ratio of a stock's latest closing price divided by cash flow per share for the past 12 months.