Second Quarter 2019

The All American Equity Fund had a total return of 2.97 percent in the quarter ended June 30, 2019, underperforming its benchmark, the S&P 500 Index , which returned 4.30 percent. See complete fund performance here.

Much of the All American Equity Fund’s underperformance was due to a lack of allocation in technology,   namely, the “FAANG” stocks (Facebook, Apple, Amazon, Netflix and Google). This ultimately lead to the fund’s underperformance. We continue to focus on companies that reward investors with handsome dividends, growth in dividend yields and companies that continue to repurchase outstanding shares among other factors. Unfortunately, during the most recent quarter investors did not pursue these fundamental metrics and instead chased the mega cap growth companies.

Past performance does not guarantee future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost.


  • The fund’s overweight allocations to energy, consumer discretionary and consumer staples helped performance.
  • The fund’s overweight in energy, consumer discretionary and consumer staples proved to be a good decision, as evidenced by the allocation’s outperformance. 
  • Investments in Anadarko Petroleum, Tyson Foods and Starbucks were among the best contributors to fund performance. Anadarko was the largest gainer in the fund driven by Occidental Petroleum’s offer to purchase the company.


  • The fund’s allocations to industrials, technology and financials were the largest drags on performance due to the fact that the fund was underweight the FAANG stocks.
  • Investments in Altria, Cimarex Energy and Cognizant were the greatest absolute detractors to the fund’s performance. During the quarter, investors in Altria learned of increased regulations that may hinder future growth of electronic cigarettes.


Surveying the investment potential for the third quarter, the prospect of the Federal Reserve reducing the benchmark interest rate at the July 31 meeting seems to be driving supportive demand for equity shares and bonds alike. The question that seems to be on nearly every investor’s mind is not when, but how much the Fed will cut rates this year.

Adding to this, we find an interesting situation developing. The Fed is supposed to operate without any political influence, and yet the current administration, which is supposed to remain independent of the Federal Reserve Board, has been quite vocal, attempting to encourage the Fed to reduce the benchmark interest rate. 

We do see some headwinds. For example, many analysts believe the trade wars will not end any time soon, and just before the end of the second quarter, analysts were already reducing earnings expectations. We don’t believe these headwinds will overcome the dominance an interest rate cut can provide when trying to stimulate the economy. Historically, “cheap” credit has been the best tool to stimulate sluggish economies.

The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies.

There is no guarantee that the issuers of any securities will declare dividends in the future or that, if declared, will remain at current levels or increase over time. The dividend yield is the ratio of a company's annual dividend compared to its share price.

Fund portfolios are actively managed, and holdings may change daily. Holdings are reported as of the most recent quarter-end. Holdings in the All American Equity Fund and Holmes Macro Trends Fund as a percentage of net assets as of 6/30/2019: Anadarko Petroleum Corp. 3.03%, Tyson Foods Inc. 3.92%, Starbucks Corp. 4.04%, Altria Group Inc. 2.33%, Cimarex Energy Co. 2.09%, Cognizant Technology Solutions Corp. 2.71%.


Net Asset Value
as of 09/20/2019

Global Resources Fund PSPFX $4.46 No Change Gold and Precious Metals Fund USERX $8.94 0.16 World Precious Minerals Fund UNWPX $3.27 0.05 China Region Fund USCOX $8.40 -0.11 Emerging Europe Fund EUROX $7.05 -0.03 All American Equity Fund GBTFX $24.81 -0.14 Holmes Macro Trends Fund MEGAX $16.91 -0.13 Near-Term Tax Free Fund NEARX $2.22 No Change U.S. Government Securities Ultra-Short Bond Fund UGSDX $2.00 No Change