Media

Homestead’s Small-Company Stock Fund portfolio managers were recently featured in an AdvisorHub Q&A. The digital outlet’s CEO asked about the fund company’s start-up as a subsidiary of NRECA, how that makes us different from other money managers and what we see ahead for the markets and investors. The managers also discussed the portfolio’s “quality value” approach and why we believe that and other factors could help the fund weather uncertain times.

Past performance does not guarantee future results. Equity securities generally have greater price volatility than fixed-income securities and are subject to issuer risk and market risk. Securities of small and medium-sized companies tend to be riskier than those of larger companies.

Tony Sirianni – AdvisorHub March 8, 2023

“’Broadly speaking it’s not a good idea to try to time the market, whether you’re buying an index fund or an actively managed fund. For the past decade plus we were in a period of cheap money where fundamentals were less important,’ Jim Polk, head of equity investments at Homestead Advisers, told Yahoo Finance.

‘Almost all stocks were going up so being in an index was fine. The more assets that flowed into an index fund the more the fund had to buy what they already owned, which created a virtuous circle,’ he added.’”

Past performance 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 quoted. Equity securities generally have greater price volatility than fixed-income securities and are subject to issuer risk and market risk. Value stocks are subject to the risk that returns on stocks within the style category will trail returns of stocks representing other styles or the market overall. Growth stocks are subject to the risk that returns on stocks within the style category will trail returns of stocks representing other styles or the market overall.

Ines Ferré – Yahoo Finance October 9, 2022

“’We haven’t really been in an economic cycle since 2009, given the artificially low rates the Fed has used to stimulate growth in the economy,’ said Jim Polk, head of equity investments at Homestead Advisers. ‘If we’re now seeing a more typical economic cycle, where the Fed raises rates to curb inflation, often leading to a recession then, coming out of the recession, value stocks which are more economically sensitive should outperform growth.’”

Past performance does not guarantee future results. Equity securities generally have greater price volatility than fixed-income securities and are subject to issuer risk and market risk. Value stocks are subject to the risk that returns on stocks within the style category will trail returns of stocks representing other styles or the market overall. Growth stocks are subject to the risk that returns on stocks within the style category will trail returns of stocks representing other styles or the market overall.

Patturaja Murugaboopathy and Gaurav Dogra – Reuters September 22, 2022

“Jim Polk, head of equity investments at Homestead Advisers, said he was prepared to wait out the stock’s weakness given the company’s long-term potential. ‘We understand that what’s happening with the Fed, and rates and inflation, will all have an impact on valuations,’ he said. ‘In tech, we feel it’s important to pay up for the companies with stronger potential, and which have strong competitive moats around their business. That’s why we own Microsoft and Alphabet. We feel very confident about their positions.’”

Past performance does not guarantee future results. Equity securities generally have greater price volatility than fixed-income securities and are subject to issuer risk and market risk. Value stocks are subject to the risk that returns on stocks within the style category will trail returns of stocks representing other styles or the market overall.

As of June 30, 2022, Microsoft and Alphabet each represented 4.5% of the Value Fund’s portfolio.

Ryan Vlastelica and Jeran Wittenstein – Bloomberg September 22, 2022

“’It really comes down to how sticky inflation remains,’ said Mauricio Agudelo, senior fixed income portfolio manager at Homestead Advisers. ‘It’s a battle that the Fed will continue to fight and they will have to continue pressing, unfortunately at the risk of breaking something,’ Mauricio Agudelo, head of fixed-income investments at Homestead Funds, was quoted as saying.”

Past performance does not guarantee future results. Debt securities are subject to interest rate risk, credit risk, extension risk, income risk, issuer risk and market risk.

Herbert Lash – Reuters September 13, 2022

“Mauricio Agudelo, head of fixed income investments at Homestead Advisers, noted the Fed is still playing catch up to runaway inflation.

‘We think inflation is still too high and they need to continue pressing forward with rate hikes and quantitative tightening,’ Agudelo said.

For the September meeting, the Fed will have the benefit of having multiple economic data points before deciding on the next move. The committee is taking a “wait and see” approach to the future path of monetary policy,’ Agudelo noted.”

Past performance does not guarantee future results. Debt securities are subject to interest rate risk, credit risk, extension risk, income risk, issuer risk and market risk.

Jessica Lerner – The Bond Buyer July 27, 2022

The fund and co-managers Prabha Carpenter and Jim Polk were recently profiled in Barron’s magazine where they discussed their approach to money management and their rationale for several of the fund’s holdings.

Past performance does not guarantee future results. Equity securities generally have greater price volatility than fixed-income securities and are subject to issuer risk and market risk. Value stocks are subject to the risk that returns on stocks within the style category will trail returns of stocks representing other styles or the market overall.

Lewis Braham – Barron’s February 9, 2022

Homestead’s Small-Company Stock Fund appeared in the “Category Kings” section of The Wall Street Journal for the period ending January 31, 2022.

Past performance does not guarantee future results. Equity securities generally have greater price volatility than fixed-income securities and are subject to issuer risk and market risk. Securities of small and medium-sized companies tend to be riskier than those of larger companies.

The Wall Street Journal February 7, 2022

Expect continued market volatility, said Mauricio Agudelo, head of fixed income investments at Homestead Funds. Balance sheet reduction is “complicated” he said.

Gary Siegel, Jessica Lerner and Lynne Funk – The Bond Buyer January 26, 2022

“We think the market [has] gotten ahead of itself both from a valuation standpoint and from a speculative standpoint,” Jim Polk, head of equity investments at Homestead Funds, wrote in a note to clients.

Javier David – Yahoo Finance January 27, 2022