^Since Inception returns are as of the Fund’s Investor Class inception date. Since the inception date of the Institutional Class, the annualized return of the BBC Combined 1-5Yr Index is 9.04% and S&P 500 Index is 13.68%.
Performance data quoted represents past performance and does not guarantee future results.
Investment returns and principal value will fluctuate, and when sold, may be worth more or less than their original cost. Performance current to the most recent month-end may be lower or higher than the performance quoted and can be obtained by calling 866-996-FUND. The Fund imposes a 2% redemption fee on shares held for 30 days or less. Performance data does not reflect the redemption fee. If it had, returns would be reduced.
Per the Prospectus dated January 31, 2024, the annual operating expense (gross) for the Intrepid Capital Fund-Investor Share Class is 1.99% and for the Intrepid Capital Fund-Institutional Share Class is 1.84%. The Fund’s Advisor has contractually agreed to reduce its fees and/or reimburse expenses until January 31, 2025, such that the total operating expense (net) for the Capital Fund-Investor Share Class is 1.41% and for the Capital Fund-Institutional Share Class is 1.15%. The Capital Fund may have Net Expense higher than these expense caps as a result of any sales, distribution and other fees incurred under a plan adopted pursuant to Rule 12b-1 under the Investment Company Act of 1940, as amended (the “Investment Company Act”), acquired fund fees and expenses or other expenses (such as taxes, interest, brokerage commissions and extraordinary items) that are excluded from the calculation. As a result of the calculations, the Net Expense for the Capital Fund-Investor Share Class is 1.41%. The Net Expense for the Capital Fund-Institutional Share Class is 1.15%. The Net Expense Ratio represents the percentage paid by investors. Otherwise, performance shown would have been lower.
January 1, 2025
“Press on. Nothing in the world can take the place of persistence.”
-Ray Kroc
Dear Fellow Shareholders,
This month is the 20th anniversary of the Intrepid Capital Fund, with yours truly serving as lead Portfolio Manager since its inception in January 2005!
After spending most of 2004 finding accountants, lawyers, and custody and transfer agents – not to mention the truly “intrepid” Trustees that took a chance on me and the firm – I was ready to commit “hari-kari!” Shortly after the Fund’s launch, I bought several securities in advance of a deposit that was delayed arriving (leaving the fund overconcentrated that first day, with a negative return versus a very positive outcome in capital markets that day).
Well, some things never change. As many longer-term shareholders know, it isn’t uncommon for us to “zig” when others are “zagging.” Please keep in mind that according to our friends at Dalbar and Associates, the average mutual fund shareholders “buy high and sell low” to their detriment. I am sure it is part of human DNA that somehow I missed, as most individuals love to chase securities moving up in price.
In managing the Fund, I attempt to find a sweet spot between risk and reward that allows shareholders to garner higher returns with no more risk than necessary, allowing your capital and mine to compound over long periods of time and hopefully avoiding selling when the inevitable volatility appears in the financial markets ( such as in 1987, 2000, 2008- 2009, and 2020 to name a few periods I have been forced to navigate, even prior to the Fund’s commencement). My guess is I am one of few mutual fund managers still managing a fund after 20 years (this helps explain my balding scalp, coupled with graying temples, but hey I am 63!).
When I started Intrepid Capital (30 years ago!) I wanted to co-invest on the exact same terms with our customers and that is exactly what the Fund has allowed me to do. My wife Rosalind and I contribute monthly and, in addition, I contribute through our 401(k) at work. In that 20-year period, I have been both lauded as a top manager by the financial press as well as castigated. As Douglas McArthur said upon being driven from the Inchon Peninsula by the North Koreans (backed by the Chinese): “I shall return.” I am confident I will as the difficult years of 2018 and 2019 fade in the past. This is starting to be reflected more recently with 1 and 3-year performance for the Fund. I will continue on the same track that I have been on for the last 20 years, and suggest you do the same!
The good news is we had excellent performance in the fourth quarter of 2024 which allowed the Fund to outperform the S&P 500 Index. The S&P 500 Index is an all-stock index and the Intrepid Capital generally commits 60%+/- to stocks, so this isn’t the appropriate benchmark. Fun to report, but not necessarily relevant to a “balanced” fund as this one.
All the best,
Mark F. Travis, President
Intrepid Income Fund Co-Portfolio Manager