Private Capital Management (PCM) is an investment management firm located in Naples, Florida. Founded in 1986, PCM is now a wholly owned subsidiary of Legg Mason, the investment firm of legendary investor Bill Miller. Private Capital is currently led by Gregg Powers, a career investment professional with education credentials from the University of Florida. Powers’s expertise and experience is derived from the healthcare, technology and telecommunications sectors. The flagship mutual fund of the firm is the Private Capital Management Value Fund (VFPAX).
The stated objective of the value fund is to “achieve long-term capital appreciation by investing in companies that are out of favor, underappreciated or misunderstood, and thereby trades at a significant discount to PCM’s estimation of long-term intrinsic value.” To execute this vision, the firm utilizes a research driven approach to analyze potential equities, typically those trading on North American exchanges, with no particular preference to market capitalization. From time to time, other investment opportunities such as warrants, bonds, and preferred stocks may be utilized. In addition, PCM may hedge their positions to either magnify or protect existing assets to adapt to changing market conditions. However, when analyzing equities, PCM utilizes a genera l 4 step “bottoms-up” approach: Continue Reading »