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Ask Mark Millsap and Greg Hartz what sets their Little Rock-based Foundation Resource Management apart from the competition and you’ll get an old-school answer: “We think the price you pay is the primary determinant of the investment outcome,” says Millsap. “You’re not going to find many out there as price sensitive as we are.” Tight-fistedness has paid off nicely for Foundation Resource investors. The firm now manages $1.8 billion and since 1990 its equity strategy has earned a net annualized 12.6%, vs. 10.1% for the S&P 500.
Finding deep, if not broad, pockets of value, they’re seeing unrecognized upside today in such areas as fertilizer, insurance, energy services, industrial distribution and marine transport.