PRESS ARCHIVES

MoneyLife: Market Call - Radio Interview with Bernie Horn of Polaris

In the November 2022 interview with Chuck Jaffe of MoneyLife: Market Call, Bernie Horn discussed Polaris’ investing methodology, which focuses on maintenance cash flow in real terms to determine value opportunities. In essence, Polaris looks for most undervalued streams of cash flow in any industry, geography or market cap, sizing up companies that may be priced to beat the benchmark.

In discussing geographic reach, Bernie addressed Russia as an “un-investable” country right now, while China has lots of interesting and cheap-looking companies. However, the challenge in China is finding companies willing to return cash to shareholders, made even more difficult by local government intervention. While he pointed to some great Chinese companies in the portfolio, there are two overriding concerns: high risk and mediocre returns even though the China economy had “rocket ship” growth. Many of the best values coming through the screens, after the dislocations in 2022, have been found in South Korea, Norway and Canada. Europe faces headwinds, but Asia remains interesting.

From a sector perspective, Bernie outlined Polaris’ overweight in materials and consumer discretionary. He mentioned auto parts and auto distributors as potential beneficiaries post-pandemic. Among materials, packaging companies have proven a resilient counterbalance to more cyclical companies in the same industry.

Bernie went on to discuss the firm's basic buy/sell discipline, before entertaining listeners’ questions about various global stocks. To listen to the entire radio segment, please visit MONEYLIFESHOW.COM

Market volatility is here and it's good news for value investors - LiveWire Markets

Polaris Portfolio Manager Sumanta Biswas discussed current gyrations in global stock markets, noting that market volatility could be a value investor's friend. He talks about finding undervalued stocks with good management and sustainable cash flows, highlighting a few recent Polaris picks. In the article, Mr. Biswas shares his views on: 1) the economic outlook through the end of 2022, 2) where to find value opportunities in energy and technology and 3) how to best ride out the current market.

FEEL FREE TO READ THE COMPLETE ARTICLE AT LIVEWIREMARKETS.COM

FedEx CEO Faces Strategic Choice

Fed-Ex hosted the company's top investors at its headquarters for the first time in a decade to map out strategy and execution in the face of higher fuel and labor costs. (Polaris is an investor as of the date of the article: 06/29/22). Polaris' senior investment analyst Sam Horn spoke with The Wall Street Journal about the company, stating that Fed-Ex has good long-term objectives, with the CEO focused on delivering higher margins. He also referenced the e-commerce platform as quite dynamic, with the ongoing shipment of goods a positive for the company.

Jason Crawshaw: Featured Speaker on the Value Investing Q&A Series - Brown University

Jason Crawshaw was a featured speaker on the Value Investing Q&A Series - Brown University, where he discussed rising commodities and their impact on inflation. Mr. Crawshaw shared a detailed Powerpoint discussing various commodities as an industry, while drilling down into specific stocks that are beneficiaries of the current environs.

Watch the replay of Mr. Crawshaw's interview below or visit the YouTube channel showing all of the esteemed speakers who have been featured on the Value Investing Q&A Series - Brown University.

Disclosure: The information presented on the webcast is supplemental, and should not be considered as a recommendation to purchase or sell a particular security mentioned, may change at any time and may not represent current or future investments. References to individual securities throughout this webcast are intended to illustrate contributors to recent performance or market trends and to provide examples of thematic or security-specific catalysts identified by the investment team as part of its investment process. References to specific securities should not be viewed as representative of an entire portfolio, nor should the performance of any particular security be viewed as representative of the performance experienced by any other security or portfolio. Past performance is not indicative of future results.

Polaris Global Value Fund Wins Refinitiv Lipper Award - Best in Category for 10-Year Period

Polaris Capital Management, LLC, a leading global equity manager headquartered in Boston, announced today that the Polaris Global Value Fund (PGVFX) received a 2022 Refinitiv Lipper Fund Award in the global multi-cap value fund category. The Polaris Global Value Fund was recognized for its consistently strong risk-adjusted returns for the 10-year period through November 30, 2021 relative to its peers. In the Refinitiv Lipper Global Multi-Cap Value Fund Universe, a total of 64 funds over a 10-year period were eligible for this category distinction. The Fund has been recognized by Lipper many times in the past, including 2014, 2015, 2016, 2017, 2018, 2019, 2020 and 2021, entering the rankings for 3-, 5- and 10-year periods. Read the complete press release at the Polaris Global Value Fund website.

GuruFocus Value Investing Live With Sumanta Biswas

Portfolio Manager Sumanta Biswas was the guest speaker on GuruFocus Value Investing Live where he discussed Polaris' investment philosophy and process, while also detailing how inflation impacts current investment decisions. An in-depth discussion revolved around long-term deflationary trends, which have been superseded by short-term inflation wrought from supply/demand imbalances, geopolitical concerns and other macro economics. Some real-life stock examples accompanied the presentation. Mr. Biswas answered viewers' questions throughout the presentation. Watch the replay at GuruFocus Value Investing Livestream via YouTube.

Bernie Horn Featured on MoneyLife Radio

Bernie Horn was a featured guest on daily financial talk show, “Money Life with Chuck Jaffe” on March 7, 2022, where he talked about Polaris’ current investing strategy, and proceeded to discuss investment opportunities and pitfalls in current environs. He discussed the war in Ukraine and the ensuing market impact, and then answered listeners' questions with his "Market Call" view on various stocks. To listen to the entire radio segment, please visit MoneyLifeShow.com

Stuck But Not Sweating It: Some U.S. Investors In Russia Not Kneejerk-Selling

A Reuters reporter noted that U.S. investors may be in a rush to dump Russian assets after Western allies hit Moscow with sanctions, but a few fund managers with a relatively small exposure to Russia are avoiding kneejerk decisions amid trading constraints and price dives.

Bernard Horn, lead portfolio manager at Polaris Capital Management, said the firm's only direct exposure to the Russian market was in shares of diamond mining company Alrosa. Mr. Horn noted due to the sanctions: "We’re not able to transact in the stock anyway, and there’s no real reason for us to get to panicked about it," he said, adding that some investments had in fact increased in value from the Ukraine crisis."We have more exposure that’s benefiting in some way from the shortages of things like methanol, fertilizer, gas, copper. All that in some ways is more than offsetting our exposure to Alrosa," stated Mr. Horn. (Disclaimer: Alrosa is a Polaris holding as of this Reuters report on 03/05/22.)

Bloomberg Markets: Europe - Featured Guest Bernard R. Horn, Jr.

Bernard Horn, president and portfolio manager of Polaris Capital Management, was featured on a Bloomberg Markets: Europe segment with Anna Edwards, where he discussed current geopolitical risks, inflation and commodities in the context of investment opportunities and pitfalls. Watch the replay at Bloomberg Markets: Europe Part 2. Look for the segment at 48 minutes into the program.

We are pleased to announce a new addition to the Polaris investment team, Mr. Parikshit Gupta. Parikshit formally joined Polaris Capital Management, LLC on November 29, 2021 as an investment analyst. In this position, Parikshit will work with an experienced research team of portfolio managers and analysts -- all of whom are generalists -- performing fundamental analysis of existing portfolio companies and potential investment opportunities.

Parikshit earned his Master of Finance (STEM Curriculum) degree from the MIT Sloan School of Management in 2020. While attending the MIT Sloan School, he completed an internship as an analyst here at Polaris. Parikshit received his undergraduate degree in industrial engineering in 2016 from the Delhi College of Engineering in New Delhi, India.

Following his MIT graduation, Parikshit worked at Ernst & Young in New York with the strategy and transactions team serving financial institutions, completing projects in financial modeling, performance analytics and capital management. He previously worked as an associate in the Operations Management Leadership Program at General Electric in India, doing rotations in GE's renewables, power and health care businesses.

Bernie Horn Discusses Polaris' Global Investment Outlook On MoneyLife Radio

Bernie Horn, President & Portfolio Manager with Polaris Capital, was a featured guest on daily financial talk show, “Money Life with Chuck Jaffe” on July 20, 2021, where he talked about Polaris’ current investing strategy. Please visit that Money Life website for more details; replay of the radio program is available.

These 3 International Value Funds Will Shine In A Global Recovery

The U.S. leads the world in vaccine rollout and economic recovery, making U.S. stock rather pricey. Stocks in most other countries - developed or emerging - are still much cheaper than their U.S. peers. But as they recover, local businesses will improve and those stocks will have further to run. However, finding value abroad can be tricky due to different capital markets and accounting standards. Barron's contends that investors should consider funds led by experienced active managers who can find cheap, high-quality stocks. The publication pointed out a few international value funds, each tilted toward different countries and industries, that have strong track records and solid performance this year, among them is a foreign value fund subadvised by Polaris Capital Management. Read more at Barron's website where Portfolio Managers Sumanta Biswas and Bin Xiao discuss their top picks in various Asian markets.

Bernard Horn’s Top 5 Trades Of The 1st Quarter: Global value-oriented fund releases quarterly portfolio

The article discusses the Polaris Global Value Fund's (PGVFX) investment philosophy, detailing market efficiency and investor behavior that leads to volatility. The article goes on to outline the Fund's assets, portfolio stock count, portfolio composition by sector and new buys and sells. For more information, please visit the Polaris Global Value Fund website.

Bernard Horn: Guest Speaker on The Acquirers Podcast

In the June 28th episode of The Acquirers Podcast, host Tobias Carlisle chats with Bernard Horn, founder and principal at Polaris Capital Management. During the interview, Mr. Horn provided some great insights into:

• When Value Investing Was Like Shooting Fish In A Barrel
• Building A Low-Correlation Global Portfolio
• Knowing When To Sell Made Easy
• Value Investing Comeback
• Moore's Law & Inflation
• How To Filter 40,000 Global Companies To Find The Best Investments
• Value Investing Globally Before The Internet
• Building Global Portfolios In An Interconnected World
• Global Accounting Standards Are Not All The Same
• When Low-Correlation Global Assets Yielded 14% Dividend Yield

Watch the complete podcast here.

Morningstar World-Stock Categories Get Some Style

Morningstar recently broke out its world-stock categories by style to provide better comparisons amongst funds. The Morningstar rating for funds and category performance ranking as of April 30, 2021 reflects the new groups – world large-stock value, world large-stock blend and world large-stock growth. Morningstar then outlines where some prominent funds landed on this new spectrum, referencing one of the Polaris Global Value FUnd as having among the biggest value tilts relative to the Morningstar Global Markets Large Cap Index. For more information, please visit the Polaris Global Value Fund (PGVFX) website.

GuruFocus Value Investing Livestream With Jason Crawshaw

Portfolio Manager Jason Crawshaw was the guest speaker on GuruFocus Value Investing Live where he discussed not only the Polaris investment philosophy and process, but provide some real-world examples of the work leading up to a new stock investment. He also discussed the possible reversion to value, after a long period of growth stock outperformance, based on current market returns and trends. Watch and listen to this very informative livestream at: GuruFocus Value Investing Live (at YouTube)

Bernard Horn’s Polaris Global Fund Reveals Top 4th Quarter Trades

The article offers a recap of the Fund’s fourth quarter commentary, with focus on Polaris Global Value Fund’s top five trades. The Fund’s basic philosophy is outlined, along with the general view about how investor behavior may engender volatility that could result in market inefficiency. It is upon this inefficiency that Polaris capitalizes, buying fundamentally strong stocks at undervalued prices. The Fund components are outlined with weightings on sector. More detail about the recent buys and sells is provided. For more information, please visit the Polaris Global Value Fund website.

Change Is The Only Constant

Beyond the recovery from COVID-19 and its lingering uncertainties, there are opportunities for investment professionals to help change the future of economics in America. Advisors Magazine talked to investment professionals around the country... including Polaris Portfolio Manager Sumanta Biswas. He suggested a change in quarterly earnings reporting, pointing to the short-term nature of such reporting that may not reflect companies' long-term strategic decisions. Mr. Biswas proposed that companies should announce earnings, performance, growth objective, management changes, etc. on a semi-annual or annual basis with more in-depth analysis and reporting benchmarks.

Polaris Global Value Fund Wins Refinitiv Lipper Award – Best in Category for 10-Year Period

For more information about this award, please visit the Polaris Global Value Fund website.

Bernie Horn Discusses Polaris' Methodology and Investment Trends in COVID

Bernie Horn discusses the methodology for the Polaris Capital investment strategies, including the Polaris Global Value Fund. He discussed Polaris’ focus on “cash, cash and more cash”, noting that the value of any investment is dependent on the amount of cash flow. So the Polaris team searches the world to find companies that generate enough cash to reinvest back into the business, pay down debt, buy back stock and provide the leftover to shareholders. Currently, analysts are finding companies that fit this “free cash flow” metric in China, Korea and the U.S. (small/mid-cap range in the U.S.). At the sector level, Mr. Horn pointed to financials, materials and industrials as attractive. He also described how COVID-19 impacted stock decisions, as Polaris invested in countries like China, which had a head start on recovery. Positions in materials were heavily weighted on the premise that as the world restarts, companies will need to start buying raw materials to do business. Conversation also steered to the value opportunities in 2020, as Polaris buying activity ramped up. For more information, please visit the Polaris Global Value Fund website.

MEMORANDUM

TO: Clients, Partners and Friends of Polaris Capital Management
FROM: Bernie Horn, President and Portfolio Manager
DATE: January 4, 2021
RE: Professional Update

Rewarding talent is an integral part of running and maintaining a successful investment management firm. To that end, we are pleased to announce a number of advancements in recognition of individuals’ strengths, tenure and contributions to Polaris.

Please read the memorandum here.

Fund Spy: Consider Going Abroad for Small-Value Exposure

According to a Morningstar analyst, small-value stocks are perhaps the one corner of the U.S. market that could be considered cheap, at least based on their average price multiples. This makes the group a potential target for contrarian investors. But there are some risks (more economically sensitive/balance sheet risk), according to Morningstar. One potential way to mitigate this risk is to look abroad. Although foreign companies have increased their borrowing over the past five years, their debt levels are generally below those of their U.S. counterparts. Morningstar referenced one of Polaris’ sub-advised funds, discussing the fund’s diversification across sector and country (including emerging markets) and profitable holdings.

An Appealing Global Value Option

Morningstar Analyst Nicholas Goralka referenced the Polaris Global Value Fund’s experienced team and rigorous process, contributing to a Morningstar Analyst Rating of Bronze for the fund. The analyst went on to discuss Bernard Horn’s strong leadership since the strategy’s inception in 1998, with additional portfolio managers and analysts as assets have grown. Further discussion revolves around Polaris’ long-term absolute value approach, as well as the basics of portfolio construction from initial screening to 90% bottom-up fundamental research. The Fund continues to be benchmark agnostic, with far less U.S. equities in favor of European and Asian markets. For more information, please visit the Polaris Global Value Fund website.

Fund Spy: These Fund Managers Are True Believers

Morningstar Analyst Russel Kinnel discussed past tests wherein he found manager ownership to be the second-best predictor of outperformance after fees. Mr. Kinnel went on to explain that the Securities & Exchange Commission requires only that fund ownership be reported in ranges that top out at $1 million; nevertheless, a $1 million investment is a good sign that managers are eating their own cooking. According to Mr. Kinnel's research, only 5% of managers at foreign small/mid-value funds investment more than $1 million, but both Bernard Horn Jr. and Sumanta Biswas have hit the top rung in one of Polaris’ sub-advised funds.

Top 5 Buys of Bernard Horn’s Firm In the 2nd Quarter
(also appeared in GuruFocus.com)

Polaris Capital Management’s philosophy is based on the belief that global market fluctuations produce mispriced stocks. Investor behavior may create volatility that leads to inefficiencies in certain global markets, resulting in stock prices that do not reflect a company’s long-term fundamental valuation or future cash flows. It is upon these inefficiencies that Polaris seeks to capitalize. As such, in the second quarter of 2020, management for the Polaris Global Value Fund (PGVFX) initiated a number of new purchases, including two Chinese companies and a U.S. electronics supplier. For more information, please visit the Polaris Global Value Fund website.

Money Life with Chuck Jaffe: Market Call

Bernie Horn, portfolio manager of the Polaris Global Value Fund, discussed the difficulties of “boots-on-the-ground” research in a COVID-19 closed world. He discussed methods and targets for gleaning information about potential investments, doubling the time spent on the phones with company management teams. He noted that companies are very forthcoming about their business prospects, and have detailed developments in local markets and trends. He details how the Polaris research team has been “working their tails off” learning as much as possible in a rapidly changing economy. At the core of company analysis is cash flow. Mr. Horn says that is the topic upon which Polaris “zeros in”, and there is even better transparency about cash flows now as companies are keenly focused on that topic. They are bolstering balance sheets, building capital structure, paying off debt, cutting costs and trying to generate sales – all in an effort to successfully navigate this short-term pandemic. For more information, please visit the Polaris Global Value Fund website.

Top 6 Buys of Bernard Horn’s Polaris Fund in the 1st Quarter

Bernard Horn, president of Polaris Capital Management, disclosed this week in the shareholder letter that Polaris Global Value Fund’s top buys during the first quarter included an increased bet in a poultry/protein supplier as well as new positions in the U.S. and overseas including a cement manufacturer, laboratory/testing company and some undervalued opportunities in travel/leisure companies hampered by COVID-19. Mr. Horn also discussed in the first quarter 2020 commentary that the Polaris Global Value Fund underperformed, partially due to weakness in foreign currencies relative to the U.S. dollar. Mr. Horn also mentioned that while the Fund trimmed its weight in cyclical sectors during the quarter, the Fund remained overweight in financial services, consumer cyclical, industrials and materials, which detracted from absolute returns. For more information, please visit the Polaris Global Value Fund website.

COVID-19 Memo From Analyst James White

Extraordinary times call for extraordinary measures. We, at Polaris, have the opportunity to work with analysts who have a wide swath of experience in a number of fields and geographies. The attached memo (typically considered for internal use only) was penned by James White, who has a background in the medical field. He compiled an article outlining COVID-19 developments, which should be considered current only as of 03/30/20. We are providing this to our shareholders and clients for informational purposes only. Further disclosure/disclaimer sits within the report itself.

Please read the attached PDF.

Investment Strategy In the Face of COVID-19

Polaris Capital’s management team conducted a conference call on March 24, 2020 to discuss current investment strategies across portfolios. The discussion turned on coronavirus concerns from both a medical and economic perspective. Please listen to the audio recording here.

Disclaimer: The views in this recording were those of the authors on March 24, 2020 and may be subject to change. Information, particularly facts and figures, may become dated. Before investing, you should carefully consider a fund’s investment objectives, risks, charges and expenses. The funds managed by Polaris Capital Management, LLC contain securities of foreign issuers, including issuers located in countries with emerging capital markets. Investments in such securities entail certain risks not associated with investments in domestic securities, such as volatility of currency exchange rates, and in some cases, political and economic instability and relatively illiquid markets. This recording is intended to assist listeners in understanding investment strategy of Polaris Capital (as of 3.24.20) and does not constitute investment advice. This audio recording should not be considered as an offer to sell or a solicitation of an offer to buy any funds or securities mentioned herein.

COVID-19 Response

This memo started as a short note to update clients on current market volatility in light of the latest coronavirus (COVID-19), but turned out to be a lengthy discussion. We erred on the side of more information than less.

Please read the attached PDF.

Three Newly Rated Standouts

Polaris Global Value earned its first Morningstar Analyst Rating. Lead manager Bernie Horn has led the strategy since its 1998 inception, over which time he’s slowly built up a supporting cast to now include three co-managers and five analysts. Each member on the team is a generalist as Mr. Horn thinks it’s important for everyone to have their own macro view of how the global economy operates. This team has done well to execute their strategy with discipline over the years, focusing on sustainable cash flows, which has resulted in strong performance over the strategy’s history. For more information, please visit the Polaris Global Value Fund website.

Fund Spy: Morningstar Medalist Edition – December Analyst Ratings Upgrades, Downgrades and More

Polaris Global Value received an analyst rating for the first time. Firm founder and veteran investor Bernard Horn has run this fund since its 1998 inception, but he has groomed a decent support team of three assistant managers, and potential successors, in recent years. They now implement Horn’s conservative value approach as a unit, using screens and bottom-up research to locate solid companies whose share prices lowball their ability to generate cash over the long term. It’s a diversified, but distinctive, portfolio that doesn’t ape the MSCI World Index’s region, country, or sector weightings. Its value style has been out of favor in recent years, but long-term results remain strong. For more information, please visit the Polaris Global Value Fund website.

On The Road

A special report discussed whether today’s auto-related stocks are attractive bargains, or classic value traps. Bernie Horn of global and international investing firm, Polaris Capital, was interviewed for the article, in which he pointed to auto-related companies showing up on Polaris screens often as having cash-flow streams that appear undervalued. He mentioned some stocks of particular interest, which have been steadily gaining global market share as a result of having produced higher-quality cars, moving upmarket and expanding geographically. Mr. Horn also referenced a French tire manufacturer, as well as a multinational automotive distribution, retail and services company that works with original equipment manufacturers.

A Strong Global Value Option

Morningstar Analyst Nicholas Goralka discussed the Polaris Global Value Fund (PGVFX) and its recent Morningstar Analyst Rating, seasoned leadership and time-tested, disciplined investment process. The article pointed out the long-term track record and the build-out of the Polaris team, which now includes three assistant managers and five analysts. Using conservative assumptions, the Polaris team has designed a stock portfolio that scarcely resembles its MSCI World benchmark. For more information, please visit the Polaris Global Value Fund website.

Money Life with Chuck Jaffe: Market Call

Bernie Horn, portfolio manager of the Polaris Global Value Fund, discusses his methodology, screening and on-the-ground research to identify potentially undervalued companies. Since the 2008 financial crisis, U.S. markets have rebounded dramatically, with an extended growth period. Mr. Horn goes on to discuss Moore’s Law and disruptive technology, pointing to a declining price environment. For more information, please visit the Polaris Global Value Fund website.

Low-Cost Stocks With Improving Outlooks

Syndicated columnist John Dorfman pointed out one investment method that focused on finding companies whose stocks seemed cheap but whose profits are improving. One such stock is a Texas-based bank with 200 bank branches in the state; much of its business is tied to U.S.-Mexico trade. Despite U.S.-Mexico trade salvos, the stock held up well with quarterly earnings (through September 30, 2018) up from the previous year period. Dorfman noted: “My friend Bernie Horn’s firm, Polaris Capital, owns (a substantial amount) stock, which adds somewhat to my conviction here. I regard Horn as an astute international manager.”

A Steady Lodestar The world has changed, but the Polaris approach remains constant.

The Polaris Global Value Fund (advised by Polaris Capital) was featured in the Spring 2019 edition of Morningstar Magazine, with portfolio manager Bernie Horn discussing the Fund’s investment philosophy and approach. The in-depth “Undiscovered Managers” article delves into the Fund’s research process, while listing a number of recent Fund purchases. To read the article, please visit the Polaris Global Value Fund website.

Polaris Boosts Stake In Greencore Despite $509M Tender Offer

Global and international investing firm, Polaris Capital, boosted its stake in Greencore Group PLC, the sandwich-maker by tendering significantly fewer shares than it was entitled to under a share buyback that it had lobbied the company to launch, as a means to return capital to investors following the sale of its U.S. arm. Polaris Founder Bernie Horn said in a statement: “In effect, others sold and/or we sold less thus increasing our ownership.”

Bernard Horn’s Top 3 Buys in 2nd Quarter

GuruFocus reporter James Li detailed how Polaris’ investment philosophy derives from two basic beliefs: country and industry factors are important determinants of security prices and global market fluctuations produce mispriced stocks. As such, Polaris conducts bottom-up research to find these attractively valued investment opportunities. In the second quarter of 2018, Polaris purchased stocks from three regions: Publicis Groupe (France), Shinhan Financial Group (South Korea) and Inchcape (United Kingdom). The article went on to cite the Polaris quarterly commentary, outlining top contributors and detractors to performance.

Institutional Money – Ranking By AUM

The German trade magazine for institutional investors discussed relatively low volatility in 2017, at least on the equity side. The benefits were reflected in the managed assets of a vast majority of fund companies, according to reporting. The magazine tracked the evolution of global assets under management, separating data out between private and institutional clients. Global and international investing firm, Polaris Capital, made the list of “classic boutique” firms managing between 1-10 billion Euros (as of December 2017).

MoneyLife Market Call

During the MoneyLife Market Call radio interview, Bernie Horn discussed the Polaris investment methodology. He referenced the strategy of seeking out companies with streams of cash flow undervalued to the point that they may be priced to give returns that beat the benchmark. This strategy has been in play since the inception of Polaris’ global and international portfolios, which has contributed to long-term strong performance. Mr. Horn went on to discuss current macro-economic volatility that is helping uncover buying opportunities in a variety of sectors and regions. In particular, Mr. Horn discusses positions in South Korea with the purchase of six stocks, all of which were undervalued due to regional turmoil. At a sector level, he referenced attractive companies in industrials, information technology, retail and materials. Mr. Horn went on to highlight a number of current portfolio holdings, and then turned his attention to the “Hold It or Fold It” section of the interview.

Mutual Fund Observer – Briefly Noted

Mutual Fund Observer highlighted notable funds that received Lipper Fund Awards for 2018. Among those mentioned was the Polaris Global Value Fund, which received the five-year award* for posting the strongest trend of returns in the global multi-cap value category. *Polaris also received the 10-year award in the global multi-cap value category, but this wasn’t mentioned in the article. In the Lipper Universe, a total of 58 funds over a five-year period, and 37 funds over a 10-year period, through November 30, 2017 were eligible for this category distinction. For more information about this award, please visit the Polaris Global Value Fund website.

Capital Edge Newsletter – Value Investing

Author Chris Flanagan discusses the long-term benefits of value investing. He states that identifying undervalued companies can be difficult, but fundamental research and due diligence can reveal attractively priced stocks. An interview with Samuel Horn, analyst at Polaris Capital, outlined the international investing firm’s value-oriented investment philosophy and process. Mr. Horn laid out the investment process at Polaris: “Companies exist to produce a stream of cash flow and deliver returns to its shareholders. When you discount the future cash flows to the present, this is ultimately the current value of the company. What we try to do is purchase these cash flows at a discount.” Mr. Horn went on to discuss Polaris’ risk management strategy and efforts to find attractively valued stocks across the globe.

Global Investing – Balkan Time

Vivian Lewis, editor for Global Investing, discussed global macro-economic trends related to the Balkans. She also highlighted upward trajectory of U.S. markets largely due to positive job metrics and the hope that the U.S. and North Korea can make progress in denuclearization. Ms. Lewis referenced findings from 2017 corporate reports at a number of companies in Ireland, Canada, Spain, Latin American countries and more. She noted that global and international investing firm, Polaris Capital, is invested in Irish convenience foods producer, Greencore Group, referencing comments from Polaris’ fourth quarter 2017 performance update. Ms. Lewis also pointed out that Polaris likes other consumer staples stocks, including Asahi Group and Tyson Foods.

Polaris Global Value Fund Wins Lipper Awards – Best in Category for 5- and 10-Year Periods

For more information about this award, please visit the Polaris Global Value Fund website.

Bernie Horn Discusses Polaris’ Methodology and Deflation Beaters

Bernie Horn, President of Polaris Capital Management, spoke with Chuck Jaffe of MoneyLife Market Call about current investment methodology and Polaris’ admirable long-term track record. Polaris maintains a disciplined investment approach, patiently seeking out undervalued companies generating good sustainable cash flows. The team seeks out companies that can thrive in a deflationary environment, which is in evidence time and again from industry to industry. Not all countries are in a deflationary state, but for the most part the developed world has been in a sustained deflationary period driven by technology diffusion. Mr. Horn references items like DRAM and personal computers, which have seen prices dropping for a decade. During the radio interview with Chuck Jaffe, Mr. Horn pointed to select companies in Asian countries that still presented good value opportunities, even in a heated global economy. In the “Hold It or Fold It” section, Mr. Horn discussed the low betas and cheap valuations of Korean stocks, as well as problems within Chinese large cap companies.

Cost of Capital Beaters

Companies generating profits exceed their cost of capital, display healthier business profiles, and are also attractive investments, especially if their stocks are out of favor for temporary reasons, according to Bernard R. Horn, Jr., president of Polaris Capital Management, LLC. He and his team build a portfolio from this narrow list of stocks discovered from around the world. Read the comprehensive article, available on the Polaris Global Value Fund website.

5 New Morningstar Medalists You Might Like To Know

One of the funds sub-advised by Polaris Capital Management was named a medalist by Morningstar. The success of the fund can be attributed to a unique investment path, with unusual country weightings. For more information about the Morningstar medalist, please visit the Pear Tree Funds website.

Foreign Stocks Look Attractive To Mutual Fund Managers

The IBD article referenced May as a unique month with a mix of technology stocks and defensive industries outperforming. According to Bernie Horn of Polaris Capital, the tech sector did well because of interest in cell phones, mobile devices and software. Mr. Horn went on to discuss “defensive” precious metals, which inched up due to investor jitters over U.S.-Russia relations. However, in the months ahead, Mr. Horn expects stocks markets to benefit from improving economic growth and diminished political uncertainty (wrought from BREXIT and the U.S. and French elections). He referenced a number of attractively valued stocks in the U.S. and foreign markets.

Back To Basics: Talking with Bernard R. Horn Jr. and Sumanta Biswas

There are many ways to sort through the more than 40,000 stocks listed on international exchanges. But the folks at Polaris Capital Management find there’s nothing like packing their bags, talking to management, and getting a feel for the potential problems and opportunities you can uncover only by visiting a company. Bernard R. Horn Jr., the head of the Boston-based global investment firm, has been managing international portfolios since 1980, including numerous mutual funds.

READ THE ARTICLE, ENTITLED "PEAR TREE POLARIS: BACK TO BASICS" AT THE BARRON'S WEBSITE

Mutual Fund Managers Look For Winners in Industrials, Materials, Tech, Banks

Bernie Horn of Polaris Capital Management noted that the stock market perked up as corporate earnings reports topped expectations. In fact, he said that the U.S. economy is ramping up after years of stagnation. He discussed the supply/demand constraints in the market, positively impacting the materials sector. Mr. Horn went on to name materials/chemical companies he currently likes, including BASF, Methanex and Praxair.

ALLETE Powers Up: Duluth-Based Company Thriving As It Renews Focus On All Things Energy

Jason Crawshaw, an assistant portfolio manager at Polaris Capital Management Inc., discussed dynamics at energy company, ALLETE Inc. He referenced ALLETE’s ability to invest cash flow into other energy venues, like wind, transmission and water. Mr. Crawshaw went on to commend the company on its management and capital allocation strategy, which not only generates high-return projects for shareholders but has also diversified the company away from just coal-fired power generation.

An Unusual Approach That Has Worked Well

In a Morningstar analyst report about a sub-advised fund, the Polaris investment strategy (which is used for all of its mutual funds) was reviewed. The Morningstar article referenced Polaris’ focus on cash flow and valuation, with the investment team seeking good prices on well-managed companies. Most of Polaris’ work is fundamental company analysis. The article goes on to outline the Polaris process, which strives to have equal weightings among holdings, agnostic to sector or country. While the Polaris team does not specifically look for companies that will become takeover targets, it has been common for several of their undervalued holdings to attract takeover bids in a single year.

Polaris Global Value Fund Wins Lipper Awards – Best in Category for 5-Year Period

For more information about this award, please visit the Polaris Global Value Fund website.

Bernie Horn Discusses The Deep Dive To Find Value Investments

During an interview with Chuck Jaffe of MoneyLife Market Call, Bernie Horn of international investing firm, Polaris Capital, discussed the pursuit of value investments across the globe. In picking companies to add to the 75+/- stock portfolio, Polaris looks at a company’s future cash flows, balanced with conservative expectations for future growth. If the company is out-of-favor, priced attractively, with a fundamentally strong business model, it may be a candidate for investment. The difficulty in this process, according to Mr. Horn, is that markets are generally efficient and priced accordingly. However, there is always volatility somewhere in the world that creates mispriced stocks ripe for a value investor. In recent months, materials companies have recovered; many have begun raising prices due to strong demand in end markets. British homebuilders have also been of interest, as the industry declined in the wake of BREXIT, but rebounded as U.K. housing market concerns abated. Mr. Horn discussed one worry in the current market: the capital flight from China.

With Stocks Hot and Trump In Power, This Could Be The Year For MASS. Bank Mergers

According to the Boston Business Journal, no billion-dollar bank has been acquired in Massachusetts since 2011. The BBJ contends that conditions at the start of 2017 suggest that this could be a year that the local banking industry potentially sees another large deal. The BBJ says that stock prices for publicly traded banks are higher than they have been in years, making an acquisition more attractive to investors. Bernard Horn, president and portfolio manager of Polaris Capital, stated that “if you were going to sell a bank, you can’t think of a better time in the last 15 to 20 years, with bank stocks up so much.”

Value Fund Buys Stocks on Sale After Bad News

Bernard Horn, lead manager of the Polaris Global Value Fund, applies a value-investing strategy to markets here and abroad to take advantage of pricing inefficiencies. He looks for opportunities to buy good stocks on the cheap when a negative event occurs. Mr. Horn notes that markets are generally pretty efficient, but there are times when investors react predictably to certain stimuli. The flight response to fear encoded in our DNA plays out day in and day out in security markets worldwide. It is Mr. Horn’s job is to lean into that fear. Barrons.com spoke with Mr. Horn to get his take on currently mispriced stocks and potential bargains. To read the in-depth interview, with salient stock prices and outlook, please visit the Polaris Global Value Fund website.

Stock Markets Will Freak Out If Trump Wins, But You Probably Shouldn’t

Financial markets historically haven’t gotten too carried away on the day after U.S. presidential elections. That’s because investors spend weeks — even months — placing bets in advance of the outcome. By the time the votes are in, the margin of error usually is pretty narrow. But this year might be different. Investors have been trying to gauge the possibility of a Trump vs. Clinton win. Either way, global markets are expected to steady after the U.S. presidential race is no longer fodder for constant speculation, said Bernard R. Horn, President of Polaris Capital Management, a nearly $7 billion global and international investing firm in Boston. “The fact that the election’s over and we can start looking ahead, I think that will be a great relieve to the entire world,” Mr. Horn stated.

International Trader – Growing Irish Sandwich Giant’s Tasty Shares

An article that appeared in Barron’s and Dow Jones Institutional News referenced the efforts of Greencore Group to expand in the U.S. market and strengthen its marketshare in the UK. Greencore’s products cater to consumers seeking healthy convenience foods. According to Bernard Horn Jr. of Polaris Capital, Greencore’s sales are strong due to the company’s model of providing cost-saving consumer staples products. He believes the company is an “interesting deflationary story.”

Bernie Horn Discusses Polaris’ Value Perspective and More

In a recent MoneyLife Market Call program, Bernard Horn Jr. discussed Polaris’ value definition, the focus on cash flows and the search for undervalued stocks in a field of more than 40,000 companies globally. He subsequently addressed the Brexit vote and Polaris’ effort to buy attractively valued stocks in the face of negative news. He referenced opportunities in British homebuilders focused on domestic production, as well as a number of recent buys and sells throughout the portfolios.

Bumps In The Road – Linde

According to Value Investor Insight, there are plenty of positives in the industrial-gas business. Plants are built with a majority of the capacity already committed under long-term contracts, providing leverage in signing up nearby customers and a defense against competitive incursion. The industry also benefits from outsourcing by large manufacturers of industrial-gas production. These trends helped make Munich-based Linde AG a top pick of Bernard Horn’s Polaris Capital last year. For more information on Mr. Horn’s views of Linde, please visit www.valueinvestorinsight.com.

Comments on the British Vote to Exit from the European Union

There are a couple of points that we think may help to explain the exit vote. We were expecting a vote to “remain” but felt a vote to leave would ultimately be a healthy development to an increasingly problematic union. We expected a vote to remain on the theory that in federalist systems the economic and social benefits appear more tangible than the costs borne to collectively support those programs. The social benefits, in the form of transfer payments, tend to be dispersed broadly so that most member states see some benefits. However, the costs of such systems are often greater than what any individual state would spend on their own and as the federal, or in this case the European Union (EU), controls an ever larger budget there becomes a question of balance. In elections regarding membership, most voters tend to be reluctant to give up benefits that they perceive someone else is paying for and so votes tend to be in favor of staying with whatever union provides the benefits. This was the case with the Scottish vote last year. In the EU, however, there appears to be more separation among those member states that are benefitting from membership and those that are paying for it.

Read the Polaris commentary on this issue.

Investors Aim For Stable Growers That Can Thrive Despite Volatility

According to IBD, mutual fund managers expect more volatility and many are looking for stocks with stable growth that can thrive without a tailwind from a robust economy. In particular, Polaris Capital’s Bernard Horn is concerned about the impact of sluggish economic growth. However, he has used recent market volatility to buy shares in larger financial institutions, as well as technology companies, as the valuations became compelling.

Portfolio Manager Bernard Horn On MoneyLife Market Call

In an interview with Chuck Jaffe of MoneyLife Market Call, Portfolio Manager Bernard Horn discusses Polaris’ definition of value. He references the importance of a company’s free cash flow, that is typically delivered back to investors. According to Mr. Horn, markets are generally efficient over time, but human behavior can cause periods of volatility. It is during those periods that global and international investing firm, Polaris Capital, often finds opportunities.

Polaris Global Value Fund Wins Lipper Awards – Best in Category for 3- and 5-Year Periods

For more information about this award, please visit the Polaris Global Value Fund website.

Smart Investor: The Return Equation You Should Be Chasing

Bernard Horn of Polaris Capital discusses the need for global diversification, illustrating how one’s home country might face a lull on weak commodity prices. It may make sense to invest in another country or sector that benefits from these lower prices. Mr. Horn discusses Polaris’ required rate of return equation, which the firm employs to make investment decisions.

Speaker Bernard R. Horn: Deflation Beaters

As a speaker at the annual American Association of Individual Investors conference, Bernie Horn explains why lower commodity prices and disruptive technologies may add to deflationary pressures, focusing global and international investing firm Polaris’ attention on identifying deflation-beating companies. He discusses the specific traits these companies share that are the marks of efficiency, a necessity for succeeding in a competitive global economy. Mr. Horn reveals how Polaris identifies and adds deflation beaters to the portfolio.

Old Age and the Decline In Financial Literacy

To Our Clients and Friends:
Polaris Capital has its roots in counselling individuals about their college, retirement, and investment plans as well as estate planning needs from the early 1980s. We like to keep clients aware of best practice developments in this area. I recently attended the second Annual Conference of the MIT Center for Finance and Policy in September, 2015. There was a session on the Implications of Behavioral Finance during which a paper was presented on the subject of how old age affects the ability of individuals to analyze, comprehend, and make financial decisions. The paper is enclosed.

We felt it is worthy of your attention because the findings are definitive. Regardless of sex, education, profession, and many other control factors people experience a natural decline in fluid and crystallized intelligence that results in diminishing financial literacy and their ability to manage money effectively. Interestingly, the confidence level of people undergoing this change does not also decline. The paper notes that in the United States households age 60 and over hold 51% of all financial wealth. As we work with many clients in this demographic we feel it is a good idea that if you are in this situation or you know someone that is, it is very worthwhile to make sure you are vigilant of these findings and include trusted family members, advisors, or others who are aware of the details of the investment, estate plans, and so on. We also recommend that the various advisors including investment, accounting, and legal be aware of each other and work together with family members to make sure all your financial affairs are managed as well as they should be.

We invite you to read “Old Age and the Decline in Financial Literacy”

Authors: Michael S. Finke, Texas Tech University*; John S. Howe, University of Missouri; Sandra J. Huston, Texas Tech University (* Marks presenting author at the conference.)

Sincerely,
Bernard R. Horn, Jr.

Interested in more recent views on retirement? Please read the article on about Polaris' retirement planning calculator and use the retirement planning tool on our website.

China Woes, Fed Questions Drive Down Stocks

Bernie Horn of international investing firm, Polaris Capital, believes that Chinese officials will ultimately make smart moves to keep the world’s second-largest economy running at a moderate pace. He doesn’t believe the economy will come to a grinding halt, with China still consuming vast amounts of raw materials. Mr. Horn went on to discuss lower oil prices evident in the U.S. economy. He noted that the reduction in commodity prices will eventually filter through to the prices consumers pay for retail goods. That may prove a boon to consumers who have more available free cash.

The Importance of Investing Outside the U.S.

Portfolio Manager Sumanta Biswas discusses the Polaris investment philosophy (global value) and how the different investment strategies stem from this basic focus. He goes on to discuss international investments and the importance of holding a diversified portfolio of non-correlated assets (both U.S. and international). To watch the complete interview with Mr. Biswas, visit Asset Advisor Strategy’s YouTube channel.

Dialing For Dollars: Investors See Hope In Telecom

The telecommunications sector, which lagged most others over the past few months, is starting to attract new looks per a recent article in IBD. Bernie Horn of international investing firm, Polaris Capital, expressed more interest in certain telecom operators – especially those that provide wireless, landline and Ethernet internet services – than in hardware and software vendors. Mr. Horn discussed various U.S. communications companies, as well as offerings in Japan and Germany.

The Greek Debt Crisis Turned These European Stocks Into Even Better Buys

The article discusses how global managers – who can invest in stocks anywhere in the world – are focusing on companies that can withstand Europe’s geopolitical dysfunction. The reporter pointed to Polaris Capital's Bernie Horn, who takes advantage of swoons generated by sour headlines about Greece and Ukraine to buy more stock in undervalued European companies, including some on France, Germany and Norway.

Polaris’ Team Discusses Funds

In an article about a Polaris sub-advised mutual fund, Kiplinger’s writer Ryan Ermey discusses the investment process and performance. The Polaris team scours the globe in search of cheap stocks, screening for firms that generate robust cash flow. They narrow the field of stocks to those that they think will return at least two percentage points per year above the respective indices. Only about 10% of stocks that pass the screens make the final cut. Polaris’ Bernie Horn prefers firms that consistently cut costs and provide goods and services that save customers money. These are marks of efficiency, a trait necessary for succeeding in a competitive global economy.

Interest Rate Hike: Stocks Poised to Benefit

Bernie Horn of Polaris Capital Management discussed current interest rates in the context of banking stocks. In particular, Mr. Horn believes that smaller banks and life insurers have more room to run because of valuations that remain low compared with the broad S&P 500. Mr. Horn also noted another potential advantage for smaller banks: a lighter regulatory burden. He goes on to reference a bank that appears likely to benefit from more consumer spending due to lower energy costs and a strengthening economy.

Mutual Fund Honor Roll

For more information, please visit the Polaris Global Value Fund website.

Professor Robert C. Merton: The Crisis In Retirement Planning
Robert C. Merton, a recipient of the 1997 Alfred Nobel Memorial Prize in Economic Sciences, is the School of Management Distinguished Professor of Finance at the MIT Sloan School of Management. Courtesy of MIT Sloan School of Management

Introduction from Polaris Capital's Bernie Horn:

Professor Robert C. Merton describes, at a very general level, the method of retirement planning I have ascribed to since the early 1980s. Prior to viewing the video and in order to introduce the subject, there are a few retirement planning basics of which to be aware. I believe that a retirement plan must be based on some basic data like how much, in today's dollars, you need for retirement income, how much current savings you have and how much you can save each year for retirement. If properly analyzed, the combination of these facts will determine the allocation of your retirement investment portfolio among low and high risk investments.

The investment time horizon is that of life expectancy. Life expectancy depends on your age, health, etc. Based on actuary tables, females and males that reach age 65 live to age 85.5 and 82.9 respectively. However, people in good health can live well into their 90s. So for a 50- or 60-year-old individual, the investment time horizon can be 30 to 40 years. This period is often longer than the number of years people save for retirement. For a retirement nest egg to produce enough income for 30 to 40 years, the allocation often must be weighted more toward equities than bonds. It is important to note once this asset allocation has been established, it should not be changed as one ages. This is why we think target date funds or investment strategies that recommend shifting assets to bonds or low risk investments "at retirement" is the wrong recommendation. If a person unexpectedly saves much more than initially predicted, inherits money, or sells assets like real estate that substantially increase the size of the retirement portfolio, it is possible the larger investment portfolio will produce more retirement income than needed. Then and only then should the risk profile be reduced.

Many of Polaris' clients receive sales calls from advisors offering to perform analyses of their portfolios; such analyses typically recommend dramatic changes in asset allocation. Such recommendations often incorrectly analyze the retirement income projections, expected returns, etc. in order to arrive at a recommendation to change something about a portfolio. We think this is wrong advice. The primary reason such analyses go wrong is that the projected returns from a portfolio are not in real, inflation adjusted terms.

Real returns must be used to avoid the inaccuracies of trying to predict inflation over many decades. This is why we also use a person's current income to judge how much they need to live on in retirement. Accurate retirement plans should use today's real income and expected future portfolio returns in real terms. The wrong analysis uses higher nominal returns (excluding inflation) to project portfolio values. These nominal returns overinflate future portfolio values that then overestimate the amount of income, in today's terms, that will be available for retirement. This is quite dangerous. For instance, we see many recommendations that assume bond returns of 3-5% or more, which is what some bonds may yield today. But when we observe what investments have earned after inflation or in real terms over the last 75 to 100 years we see the following:

Treasury Bills:                            0.5%
10 Year Government Bonds:  0.75% to 1.0%
30 Year Government Bonds:  2.0%
Equities:                                       7.0%

Mistakes in personal retirement planning are similar to those experienced in corporate/government retirement planning and accounting. What Professor Merton discusses in this video is not so much the basics as described above but how the financial industry, companies and governments must change the way retirement information and retirement assets are presented and communicated to people.

Professor Merton was awarded the Nobel Prize in Economics in 1997 for his work with my other Sloan Professor Fischer Black and Myron Scholes of University of Chicago on option pricing theory. Professor Black passed away prior to the Nobel Award, which was not given posthumously. This work changed the world of finance as we know it today. Professor Merton remains an important influence on the investing principals used at Polaris. If Professor Merton's legacy was not already enough, he now wants to spur a revolution in the field of retirement planning. We agree with his many comments about the retirement crisis in the world today. We also agree that the shift from defined benefit plans to defined contribution plans has been a gross injustice to people saving for retirement through work-funded pension plans. The talk is one of the best Professor Merton has given on the topic and should be viewed by anyone who gives or receives advice on retirement planning. Enjoy!

Please note: Polaris does not currently provide individualized retirement planning analyses for new clients.

Far And Wide: Investor behavior almost always leads to market inefficiency somewhere in the world.

Bernard Horn, Sumanta Biswas and Bin Xiao of global and international investing firm, Polaris Capital, describe how they cull their 40,000-company universe, why they believe an all-cap strategy is best suited to today’s world, why their global team consists of generalists based in the same office, and why they see mispriced value in Linde, WorleyParsons, Capital One, Rexlot Holdings and Thai Oil. To read the complete article, visit the Polaris Global Value Fund website.

Assistant Portfolio Manager Bin Xiao On MoneyLife Market Call

In an interview with Chuck Jaffe of MoneyLife Market Call, Assistant Portfolio Manager Bin Xiao discussed Polaris’ methodology and the basic buy/sell discipline. As a value manager, Polaris seeks out companies generating free cash flow, but remain undervalued by the market. For more details about the audio transcript, please visit the Polaris Global Value Fund website.

Frontiers of Finance

Courtesy of MIT Sloan School of Management

Konecranes Shares Have Been Picked Up

Recent statements from Polaris were referenced in an article about Konecranes, a Finnish manufacturer of industrial cranes. The online publication specifically cited Polaris on the following: “(Konecranes) highlighted growing order books for both equipment and services businesses. Konecranes Oyj is confident in its 2015 guidance, expecting better revenues and profitability than in prior years.” Seeking Alpha also referenced Polaris’ outlook on rising global shipping in the wake of lower commodity prices.

Polaris Global Value Fund Wins Lipper Awards – Best in Category for 3- and 5-Year Periods

For more information about this award, please visit the Polaris Global Value Fund website.

An Exclusive Interview With Bernard Horn
(also appeared on Forbes.com, FinancialPlanning.com and Nasdaq.com)

In a recent interview, Mr. Horn discussed the beginning of his career, founded on education and experience at real companies learning about cash flow creation. He was inspired by one of his professors to launch his first global value portfolio in 1980. Mr. Horn went on to discuss the global portfolio’s current investment weightings as well as buys and sells. Future additions to the portfolio might include “deflation beaters”, which are defined as companies that offer a fixed-price product that saves a consumer money. Mr. Horn ended the conversation with some salient thoughts regarding investment decision making.

Speaker Line-Up For Mutual Fund Observer

Why schedule an investor conference call with Mr. Horn? Three things led the editor from Mutual Fund Observer (MFO) to the interview. According to MFO, the Polaris Global Value "is really good and really small". Second, the Polaris sub-advised small cap international portfolio continues to get better, and it trawls the waters where active management has the greatest success. Third, the MFOteam had a conversation with Mr. Horn in November, impressed by his reflections of both failures and successes.

Observer Fund Profiles: PGVFX

The Mutual Fund Observer recently penned an article about the Polaris Global Value Fund, noting that the Fund sports one of the longer records among global stock funds, low expenses, excellent tax efficiency, dogged independence and positive long term returns (since inception as of 7/31/89). For more information and a comprehensive summary, visit thePolaris Global Value Fund website.

Bernie Horn On MoneyLife Market Call

In an interview with Chuck Jaffe of MoneyLife Market Call, Bernie Horn discussed the Polaris’ definition of value, current research and portfolio stocks. There are more than 800 stocks attractively priced in Polaris’ research screens, with many opportunities in both developed and emerging markets. In the U.S., good values can be found among financials, technology and consumer discretionary companies. Mr. Horn went on to discuss a number of current portfolio holdings including Norwegian fertilizer manufacturer Yara and U.S.-based General Dynamics. At the end of the interview, Mr. Horn participated in the “Hold It or Fold It” stock analysis. To listen to the audio transcript, please visit the Polaris Global Value Fund website.

Assessing Investors’ Needs A Decade From Now Drives Manager Selection

In a brief interview, Mr. Horn recalls how he set out as a global value investor in 1980, at a time when doing such was unusual for a U.S. money manager. Investing then was very different from today. For one thing, information moved much more slowly then it does now (a month to receive an annual report of a European listed company), and it was more difficult to make investments. Mr. Horn faced this global value investment challenge, believing it would be the right approach. Mr. Horn notes that 35 years later, the big global consultants are now really starting to adopt global equity mandates as “core” for investors.

FUND SPY: Keep An Open Mind On Open-Minded Funds

There are many funds, both active and passive, that don’t limit themselves to owning just one type of asset, or don’t fit neatly and consistently into one portion of the style box, and yet are worthy of consideration. These include the most wide-ranging, go-anywhere funds, like Polaris Global Value. For more information about Morningstar's summary, please visit the Polaris Global Value Fund website.

European Trader: At Yara, Expect A Bumper Crop Of Gains

During an interview, Bernie Horn discussed misconceptions about Yara International, the world’s leading producer of ammonia, nitrates, NPK and specialty fertilizers. Mr. Horn noted that investors misprice the stock because they see the company as a commodity urea producer.

CNBC Power Lunch: All Star-Investors

Bernie Horn was one of two featured commentators in the “All-Star Investors” segment of CNBC Power Lunch. In the TV interview, Mr. Horn discussed the Polaris investment philosophy, referencing the recent portfolio weightings between domestic and international stocks. He discussed U.S. portfolio holdings and various acquisitions completed year to date.

Fund Industry Stars At Morningstar Confab

During an interview, Bernie Horn discussed his preferred market cap and global locations for investing. For more information, please visit the Polaris Global Value Fund website.

Bernie Horn On MoneyLife Market Call

During an interview with Chuck Jaffe of MoneyLife Market Call, PGVFX Fund Manager Bernie Horn discussed basic concepts of value and the disciplined approach to stock picking. To listen to the audio transcript, please visit the Polaris Global Value Fund website.

Polaris Global Value Fund: An Intriguing Option for Patient Investors

For more information about the Morningstar analyst report, please visit the Polaris Global Value Fund website.

International Guru Bernard Horn Reports His Top Five In The First Quarter

Bernie Horn, manager of the Polaris Global Value Fund, reported first quarter holdings for the fund. To read the article synopsis from Guru Focus, please visit the Polaris Global Value Fund website.

Zacks Ranked Global Mutual Funds

For more information about this article, please visit the Polaris Global Value Fund website.

9 Mutual Fund Winners With Long-Term Performance

For more information about this article and the PGVFX Fund, please visit the Polaris Global Value Fund website.

Polaris Global Value Fund Wins Lipper Awards – Best in Category for 3- and 5-Year Periods

For more information about this award, please visit the Polaris Global Value Fund website.

MoneyLife Market Call With Bernie Horn

Bernie Horn discusses Polaris’ value philosophy in examining the more than 35,000 stocks in global markets. When the deep value discipline is applied, there is approximately 1000 stocks on the Polaris screens, at which time the research team conducts its bottom-up analysis. Geographically, the developed world economies (namely the U.S.) performed strongly this year, while emerging markets faltered. As a result, the Polaris team identified a wealth of global value investment opportunities in Asia. Good values were evident in almost every sector ranging from financials to real estate construction, as well as some basic materials and consumer staples.

Emerging Markets Become More Diverse

The disparity among emerging markets is a boon for active global value management, according to Bernie Horn of global and international investing firm, Polaris Capital. Since we are going into a more selective world, passive strategies following a broad index may suffer, he said.

2013 AAII Investor Conference

Bernard R. Horn, president and portfolio manager of global and international value investing firm Polaris Capital, discussed interesting insights he has gained from his research in the U.S. and around the world. He referenced global markets in the context of three traditional investment theories: market efficiency, correlations and probability distributions of stock returns.

5th Annual Fund Forum USA

Bernard Horn Jr. of Polaris Capital Management and other industry veterans discussed global value investment strategies to enable U.S. investors to take advantage of growth in emerging markets.

The Wall Street Transcript -Investing Globally Across Industries and Market Caps
Mr.Horn's interview with The Wall Street Transcript has been selected as one of the Top Ten Portfolio Manager Interviews of 2013.

Bernard Horn Jr. of global and international investing firm, Polaris Capital Management, discusses some of the advantages of global value investment and how his outlook has evolved over recent decades. The Polaris Global Value Fund has holdings in at least 15 different countries and industry groups across market caps, and Mr. Horn explains where he sees additional opportunities. He also walks through the stock selection process and names key holdings.

Read the complete transcript.

MoneyLife Market Call With Bernie Horn

Bernie Horn discussed Polaris’ definition of value during a radio interview with Chuck Jaffe of MoneyLife Market Call. Polaris believes that companies exist to generate cash flow for their shareholders; as a result, Polaris looks at company cash flows to determine which are trading at the highest expected return. In making Polaris Global Value Fund investment decisions, the investment and analyst teams screen more than 35,000 companies, whittled down to about 1500 companies that might meet Polaris' objectives. From there, Polaris conducts fundamental research to determine the approximate 75 companies in the Fund. Currently, Polaris is finding the most value opportunities in the U.S., Japan and other Asian countries. Although the U.S. economy is on an upswing, Polaris sees lots of pockets where business is not yet robust - and thus presents good values. On a sector basis, consumer discretionary stocks have been prominent in the screens and subsequent research.

Morningstar Fund Spy – An Intriguing International Fund Shines Outside the Spotlight

According to Morningstar, long-term investors who are willing to hold on or even add to their stakes during downturns might be interested in the Polaris Global Value Fund. For more information, please visit the Polaris Global Value Fund website.

Loan Growth Will Be Hard For Rockland Trust, Despite Demand

Polaris Capital’s Bernie Horn discussed the difficulties faced by some community banks, as they seek to attract new loans. Many smaller banks and some credit unions are proving to be strong competitors with an unfair advantage — no public shareholders, less stringent regulations and credit unions pay no taxes.

MoneyLife Market Call With Bernie Horn

Polaris Capital’s Bernie Horn conducted a radio interview with MoneyLife Market Call’s Chuck Jaffe. Mr. Horn discusses his nearly 30-year history of global value investment and the competitive and diversification benefits of this approach. He describes the Polaris’ methodology and analysis of companies as “streams of cash flow”. The Polaris investment team looks globally for values, noting a very mixed world market. Some companies — in European countries affected by political turmoil — have proven good values, including banks. Many companies in China and Japan have looked appealing on the surface, but have been rejected on fundamental grounds. Mr. Horn chatted with Chuck about various companies in the Polaris’ portfolios and then participated in the MoneyLife “Hold It or Fold It” segment, discussing the merits of individual stocks.

IBC Chips At Exit Strategy As Other Banks Repay TARP

IBC could sell new common stock to raise cash to take out the government as an owner. But that would dilute existing shareholders’ ownership, as it would if Treasury exercised its right to buy additional common stock. The bank’s unlikely to take that step. It doesn’t need to. "They’re lucky enough to be a profitable bank, so that they’re able to generate the capital to buy back the preferred stock," said Bernard Horn Jr., president and portfolio manager of Polaris Capital Management, a Boston-based global and international investing firm. "They can earn their way out of it," Horn added.

Fund Managers Realize Big Gains From Small Bank Stocks

Portfolio manager Bernard Horn can go anywhere in the world to find a stock for his global value fund. But some of Horn's best stock picks have been small banks gathering deposits and making loans right in his own back yard. Shares of Independent Bank and other small-cap bank stocks soared as they increased their assets and set aside less money for problem loans. They've also capitalized on the woes of their big bank brethren, picking up some of their dissatisfied customers and key lending teams. "Small losses (of business) for big banks can be big gains for smaller banks," Horn said. "Smaller banks also tell me they get loan officers leaving bigger banks, bringing with them healthy customer relationships. That's real earnings growth at very little cost."

BIOGRAPHY with Bernie Horn

Disclosure: Morningstar's 2006 International Stock Manager of the Year Criteria: Fund managers were ranked by performance, long-term records, sound strategy and manager commitment toward the funds' shareholders.

Upside: BRICs Are Sinking Like a Stone; It Might Be Time to Buy

A better approach than buying into a BRIC fund is to find one that shops in many emerging markets for companies that look cheap based on measures like cash flow, dividends and yields on local government bonds, says Bernard Horn, founder of Polaris Capital Management in Boston, which oversees $2 billion. Such funds can scoop up BRIC bargains as they arise, without being confined there.

Investment Experts Bullish on Natural Resources Funds, High-Yield Bonds, Real Estate

"Invest in companies that run lotteries or provide technology for them. Governments are going to have to rely more on lotteries and other new ways of getting revenue. We own Lottomatica, the world's largest operator of lotteries." -- Bernie Horn, president and portfolio manager of global and international investing firm, Polaris Capital Management

Consuelo Mack WealthTrack With Bernie Horn

Video Disclosure: Morningstar's 2006 International Stock Manager of the Year Criteria: Fund managers were ranked by performance, long-term records, sound strategy and manager commitment toward the funds' shareholders

Pear Tree Polaris Foreign Value Fund Awarded By Lipper

Polaris Capital Management, LLC, a leading global and international investing firm headquartered in Boston, announced today that the Pear Tree Polaris Foreign Value Fund (QFVIX), the fund subadvised by Polaris, won the 2012 Lipper Fund Award for best international multi-cap value fund over the 3-year and 10-year periods. This is the third year in a row that the Fund has been awarded the 10-year distinction. The awards are for the 3-year and 10-year periods ended December 31, 2011, with 36 funds and 16 funds respectively in the international multi-cap value funds universe eligible for the distinction. The Fund posted the strongest trend of consistent risk-adjusted returns for the 3-year (+17.19%) and 10-year (+8.23%) time periods ending December 31, 2011.

Bloomberg Portfolio Manager Mash-Up Presentation

Bernard R. Horn Jr., president and portfolio manager with Polaris Capital Management, LLC, a leading Boston-based global and international investing management firm, was be a featured speaker at the inaugural Bloomberg Portfolio Manager Mash-Up Conference. Mr. Horn was be joined by a number of other leading investors at February 16, 2012 conference, hosted at the Union Square Ballroom in New York. Mr. Horn discuss Emerging Markets: Old and New, with emphasis on the deepening euro zone crisis, general malaise in developed markets, frontier markets to succeed the BRIC and emerging market debt.

Bernie Horn Spoke At 7th Annual New York Value Investing Congress

Bernard R. Horn Jr., president and portfolio manager with Polaris Capital Management, LLC, a leading Boston-based global and international investing firm, was a featured speaker at the 7th Annual New York Value Investing Congress. Polaris believes markets have returned to normal patterns of volatility and that investor pessimism has resulted in fundamentally strong companies trading at extraordinarily compelling stock prices -- ripe for a value manager like Polaris. At the conference, Mr. Horn discussed global market inefficiencies, Polaris investment process and a wealth of currently undervalued stocks picks.

Finding Value Spanning The Globe

Bernard Horn of Polaris Capital Management spoke at the Value Investing Congress, where he referenced global and international investing opportunities around the world, including Europe. He uses a discounted cash flow method as his primary methodology for making investment decision. Horn, who manages $4 billion in assets, mentioned that equities historically have had a 6% real rate of return after inflation over the past 50 to 75 years. Horn described his style of investing as fundamental analysis, specifically Graham and Dodd style analysis. Horn looks for companies with sustainable free cash flow. His objective is to beat the benchmark but with lower than benchmark risk. The beta for Horn's portfolio is lower than 1. Horn believes the volatility we have seen recently is very normal, and the current situation is very normal.

Late-Day Rally Pushes Stocks Into The Black

"Many banks, if they truly write down their Greek debt to where it probably should be, may have a capital problem," said Bernard Horn, president of Polaris Capital Management in Boston.

Chinese Protest $5 Billion Losses Tied To U.S Reverse Mergers

Evidence of Xilan’s dispute with domestic shareholders and a high turnover of chief financial officers pushed Polaris Capital Management LLC, a $4.2 billion investment manager, to sell all of its shares in China Natural Gas this year, according to Bin Xiao, an analyst at Boston-based Polaris. “Our big concern was on the corporate-governance issues,” said Xiao, who visited the company in April 2010.

Brazil Set To Battle China Over Copper Bid In Africa

Copper and cobalt are in strong demand in China, noted Bernard Horn Jr., president of Boston-based Polaris Capital Management LLC, which manages over $4 billion and more than 25 million Metorex shares. "So it certainly doesn't surprise me that some Chinese buyers are potentially interested."

Stocks Fall On Negative Outlook For U.S. Debt

Bernard R. Horn Jr., president of Polaris Capital Management Inc., a Boston investment firm, said the current low cost of debt is part of the problem fueling government spending. Much like home buyers stretching when mortgage rates were at rock bottom, the government has spent freely because borrowing has been inexpensive, Mr. Horn said. The problem I have with free money or free capital is that it leads to horrible decisions by everybody in the economy, he noted.

International Diversification: Why It Still Makes Sense

A few quick article highlights: 1) The past few years have masked performance data: U.S. and foreign stocks are not highly correlated over the long term. 2) U.S. and foreign stocks become more correlated during times of crisis and less correlated afterward. 3)Including foreign stocks in your portfolio can increase returns and decrease risk.

Read the published international investing article.

Around The Horn - Profile on Polaris Capital Management

Bernard Horn, Sumanta Biswas and Bin Xiao of Polaris Capital describe the “purist” aspects of their value approach, what they consider some of the most undervalued sectors in the world, why less volatile stocks can often be more mispriced, and why they see upside in certain stocks.

Read the article.

Fundamental Discount

Companies generating free cash flows are likely to sustain their growth rates in the long term. Bernard R. Horn, Jr., president of Polaris Capital Management, looks for such names worldwide, using a rigorous global and international investing selection process that identifies companies trading at a discount to their intrinsic values.

Why Investors Should Care About The Greek Crisis

Bernie Horn, president of Polaris Capital Management, likes commodities because he expects growing demand from countries like China and India will be able to sustain prices for essentials like oil even if Europe's economy tanks. Emerging markets are pulling the developed world along when it comes to commodities, Horn says.

STOCKS & MARKETS: Why Bank Stocks Could Vault Even Higher

Not everyone is wary of smaller bank stocks. Polaris Capital Management President Bernard Horn thinks smaller banks' share prices were pulled down by the drone of negative speculation about regulatory reform throughout 2009 more than by any concerns about specific company risks. Horn cites a huge performance gap between the stocks of large banks that recovered quite a lot in 2009 and small and midsize banks that in some cases fell 30% to 40%. That, he says, has created an opportunity. When you normalize earnings over time, small or midsize banks appear to have much more upside to their stock prices than most of the large banks, Horn states. He thinks midsize banks may be among the of most undervalued investments in the world.

An Overseas Fund Comes On Strong

Polaris Capital’s fund management uses computers to thin the universe of 24,000 foreign stocks to about 1000 candidates that appear cheap based on estimates of how much cash the businesses generate. At that point, manager Bernard Horn and his four analysts turn to good old-fashioned company analysis, traveling the globe to find about 50 stocks (for the international portfolio) that they think have the best prospects over the next three to five years. Horn does not hedge the currency exposure or restrict how many stocks the portfolio can own in a particular country or industry…. A big bet on British homebuilders hurt returns during the bear market, but has paid off big in 2009.

Investors Put Executives And Boards Under The Spotlight

In their due diligence efforts, investment companies interested in buying into financial institutions have been scrutinizing banks both in terms of their balance sheets as well as management’s view on credit. Because these are highly leveraged companies, small mistakes can have a disastrous effect on shareholder value, so we tend to spend a lot of time getting to know the management team and their credit culture, said Bernie Horn, president and portfolio manager of Polaris Capital Management based in the US. Polaris manages a portfolio of more than $2.1 billion and has stakes in Asian banks such as State Bank of India, the country’s largest. The global and international investing firm is increasingly looking to invest in other markets such as Japan, Korea and Thailand, currently, having invested about 20% of its total funds in Asia. Polaris prefers financial institutions with more conservative culture and slower growth than ones with much faster growth compared to its peers or sector, even if the bank looks to be of great value.

Taylor Better With Debt Than Share Sale, Polaris Says

Taylor Wimpey, the U.K. homebuilder negotiating a financial rescue, can generate enough cash to meet repayments without a rights offering if it can maintain and increase sales, according to global and international investing firm Polaris Capital Management. Polaris supports a share sale only when funds are needed or if Taylor Wimpey issued warrants or preferred stock prices at a future date when market have improved, commented Bernard Horn.

Taylor Wimpey Lenders Support Rescue, Polaris Says

Taylor Wimpey investor Polaris Capital Management says banks are very supporting of a financial rescue package, a sign that the risk of a debt-for-equity swap is diminishing. Polaris favors a refinancing deal and opposes boosting Taylor Wimpey’s cash through a share sale or direct investment from the Middle East.

Banks Surge On $250B Investment Plan

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. The majority of medium sized institutions are still reasonably healthy, said Horn, whose firm manages about $3 billion.

With Eyes On Washington, Investors Reclaim Ground

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.

Polaris Capital’s Horn Hangs On In Rough Market

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' global and international investing 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.

On The Lookout For Survivors

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 of Polaris Capital Management.

Six Bank Stocks Worth Buying

Bernie Horn of Polaris Capital discusses Sovereign Bancorp, its branch network and the bank's efforts to raise capital. Mr. Horn appreciates the hands-on approach of Sovereign's management team in tackling the credit crisis.

Talking Global Investing With Bernie Horn

In an e-mail interview, Mr. Bernie Horn shares his views about global and international investing, new investment opportunities, and concerns regarding China. He discussed the firm’s unconstrained pure value equity selection process that is characterized as an active, all-capitalization investment approach. Polaris is considered a deep value manager; 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 firm’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.

Investor's Guide 2008 - Harvesting The Top Foreign Stocks

Smart value hounds continue to sift through the battered financial sector, looking for stocks that have been unfairly punished for the sins of others. The Bank of Ireland is one such name, suggests Bernard Horn, manager at global and international investing firm, Polaris Capital Management. The stock has taken a hit as Ireland suffers through its own housing slump, but Mr. Horn argues that the long-term picture for the Bank of Ireland remains solid, largely because favorable corporate tax rates could result in a continuing flow of businesses and immigrants into the country. The bank also has little exposure to structured investment vehicles or collateralized debt obligations.

Stocks Drop On Profit, Oil Concerns

Major U.S. stock indexes ended lower on continued worries about fourth-quarter corporate profits and the inflation implications of surging oil prices. Downbeat news on the housing sector also weighed on equities. This is the first quarter where the negative fallout is being seen from the upward adjustment of interest rates on the riskier loans the more aggressive banks began to make once credit spreads flattened, said Bernard Horn, Jr., a portfolio manager at Polaris Capital Management in Boston. The more aggressive banks may not have sufficient reserves to back the loans they've made, while the banks backed by deposits, on which the interest rates have come down since the Federal Reserve interest rate cut, should have a fair amount of [higher-quality] capital that should allow them to easily weather the storm, commented Mr. Horn.

Fishing for Values In Foreign Markets

A homebuilder based in Helsinki, Finland, YIT has discovered a profitable niche: building Western-style housing in Russia. Thousands of middle-class Russians are moving out of rundown Soviet-era apartments into modern, amenity-laden homes, and YIT is building those units as fast as it can. According to Bernard Horn of international investing firm, Polaris Capital Management: People are lifting themselves up in Russia and YIT is benefiting. You can’t buy into that trend with a U.S. company.

Screening The World's Bargain Bins

Polaris Capital Management illustrates one of the advantages of a quantitative approach to stock picking: Computers are immune to pressure from fads and indexes. Not to mention they can crank through thousands of stocks like it's nobody's business -- sometimes with marvelous results. Horn's computers focus foremost on free cash flow, basically the amount of cash profits left after the capital expenditures needed to maintain a business. His quantitative models rank 24,000 companies around the globe on the basis of free-cash generation. The screens churn out about 500 names that merit further attention. Horn and his four analysts develop financial models of each company and in many cases meet with executives of potential investments, as well as officials from rival corporations. Horn brings a cautious eye to the global and international investing table -- he likes companies that appear to be good buys regardless of future growth.

Global Investing: One-Stop Shopping

The case for buying a world stock fund can be pretty simple: The globe is your oyster. Managers of world-stock funds can pool the best ideas of analysts across their firms, regardless of where the companies those analysts follow are based. To get a look at the world funds category, The Wall Street Journal turned to three managers who Morningstar says represent different and smart ways of approaching a world fund – one of whom is Bernard Horn Jr. at global and international investing firm, Polaris Capital Management. At Polaris Capital Management, stock selection begins with data crunching. Using proprietary software, computers continually screen thousands of stocks from around the world, zeroing in on free cash flow, a measure of a company's available cash. Currency risk and country-specific data like economic growth and demographics are incorporated. Of the several hundred stocks that emerge from that process as candidates for investment, dozens end up in the portfolio at any one time based on further research. Historically, stock selections typically span about 15 countries and 15 industries and are held for three to five years.

Foreign Bazaars - Foreign Value Gets Exciting Returns From Dull Companies

Polaris Portfolio Manager Bernard Horn screens for companies with low prices and strong cash flows. Many of the holdings grow at modest rates, but they are in unglamorous industries that rarely skyrocket into the headlines.

Bernard Horn Jr. Is Marketwatch's Mutual Fund Manager of the Year

Mr. Horn has shown how wordly investors can profit in both developed and emerging stock markets without shouldering excessive risk. To achieve strong risk-adjusted returns, Polaris ranks countries and industries from the most undervalued to the least attractive. Rigorous tire-kicking (methodical stock picking) partially led to Mr. Horn's recognition in Marketwatch. He passed a tough test in which about 2300 U.S., global and international investing stock-fund managers were assessed on the performance, expenses and tax efficiency of portfolios. Ironically, the Polaris portfolio has excelled by investing in stocks that haven't met others' expectations.