Overview
A. Round Hill Asset Management has been in business since 1986. Our principal
owner is Channing T. Lushbough.
B. We invest for our clients primarily in stocks we consider undervalued, pursuant to
our appraisal of the issuing company’s intrinsic value. We define "intrinsic
value" as the estimated value a company's shareholders would receive if a
company were acquired, merged or liquidated in a friendly, negotiated
transaction.
"Intrinsic value" and "margin of safety" are concepts popularized by the late
Benjamin Graham. The margin of safety in a stock, if any, is the amount by
which the issuer’s intrinsic value exceeds its stock price. While adhering closely
to our value-oriented investment approach, our principal investment objective is
to achieve the highest rate of return which is consistent with preservation of
capital.
Although our investments are predominantly in stocks we consider undervalued,
we also hold some bonds for many clients, and may occasionally invest or trade in
other types of securities,
including, but not limited to, options, warrants, rights,
and other instruments. We may also occasionally pursue opportunities in
arbitrage, junk bonds, short sales, or any situation in which we perceive the
potential for an attractive return.
C. Although we may occasionally tailor a portfolio in response to a specific request
from a client, we generally do not treat our clients differently. We believe an
attractive opportunity should be available to all clients, to the extent possible.
Clients may impose restrictions on investing in certain securities or types of
securities.
D. We participate in certain wrap fee programs. We do not manage wrap fee
accounts any differently than we manage other accounts. Our wrap fee clients
pay us our standard investment advisory fee, and pay an additional fee to their
sponsoring broker-dealer.
E. As of December 31, 2023, we managed client assets on a discretionary basis
totaling about $280,068,000. We do not manage client assets on a non-
discretionary basis.