The Forester Value Fund (FVILX/FVALX) is a diversified, no-load mutual fund for advisors and investors seeking long-term investment returns, with added emphasis on capital protection in unfavorable market conditions.

Investable Universe

  • Market capitalization above $5B
  • Price/Earnings ration below sector average

Business Analysis

Fundamental research to identify companies with:

  • Solid balance sheet
  • Good competitive position
  • Historical EPS growth
  • Historical dividend growth

Security Selection

  • Determine future growth potential
  • Research competitive advantages
  • Identify potential catalysts for reaching fair value

Portfolio Construction

  • Individual positions of 1% to 3.5%
  • Sector limit of 25%
  • Valuation overlay of sector weights

Our process has historically led to strong performance with lower risk.

Stock Selection

The Fund generally buys stocks with exceptional appreciation potential, due to the stock's price being significantly below the intrinsic value of the company. The intrinsic value is Forester Capital's (the Fund's advisor) estimate of the amount a buyer would pay to own the entire company. Forester Capital performs its own fundamental analysis of the company.

Forester Capital believes that if it buys more earnings, assets and dividends with each investment dollar than its benchmark does, the Fund should perform well. Thus, the Fund places special focus on companies whose current market prices are low in relation to:

  • Price-to-earnings ratio
  • Book-to-market value
  • Price-to-cash flow ratio
  • Price-to-sales ratio
  • Earnings estimates for the next 12 months
  • Five-year return on equity

Securities may be undervalued as a result of investor's overreaction to unfavorable news about a company, industry, or the stock market in general, or as a result of a market decline, poor economic conditions, or actual or anticipated unfavorable developments affecting the company. This undervaluation may lead to great appreciation potential for the security.

The Fund may sell a stock when Forester Capital thinks the stock is too expensive compared to its estimate of the company's intrinsic value, changing circumstances affect the original reasons for a company's purchase, a company exhibits deteriorating fundamentals, or more attractive alternatives exist.

Under normal market conditions, the fund invests at least 65% of its net assets (at market value at the time of purchase) in the common stocks of large companies that have market capitalizations greater than $8.0 billion. The Fund may also invest in preferred stocks, convertible securities, warrants, and foreign securities. The Fund may also invest in stock and stock index futures, options to buy and sell such futures, mutual funds, and exchange traded funds.

Capital Protection


  • Compare current S&P 500 P/E to historical range
  • Consider forward, trailing and 5-year P/E

Systemic Risk

  • Evaluate health of balance sheets
  • (banks, consumers, corporate, government)
  • Monetary stability (inflation, currency)
  • Weigh geopolitical risks

Technical Trend

  • Identify overall market trend; less hedged when trend is positive
  • Take hedge off when there is no longer a large discrepancy in our macro outlook

We use risk control to preserve capital and enhance returns by avoiding over-valued markets. This can be done by buying options, futures or other instruments, or going to cash to adjust market exposure. The Fund avoided the down equity market by taking a defensive position, using bonds and cash to eliminate market exposure from inception through June, 2002. It was in a similar defensive position from October, 2002 through April, 2004. The Fund has also used various levels of cash and index puts to limit downside risk from 2005 through 2022.


Forester Capital Management, Ltd., is the advisor to Forester Value Fund. The advisor selects the Fund's investments and handles its business affairs under the direction of the Fund's board of directors.

Forester Capital Management, Ltd., was incorporated in 1999.