ABOUT JAM

Jolley Asset Management is a disciplined value investor. By its very definition, value stocks are always out of favor. Stocks are priced in the short term by investors’ perceptions and the emotions of fear and greed. It is when these perceptions are wrong that stocks can become undervalued or overvalued. 

 

The “value investor” will attempt to take advantage of these gaps or differences between a company’s market value and its estimated intrinsic value. In our view, buying what is popular has never worked on Wall Street. We believe that as a contrarian value manager, this approach can uncover buying opportunities. Depending on the current environment, an investor should be willing to swim against the tide, even if it means foregoing short-term performance.

Value investing is not a simple philosophy to practice. Many who attempt or claim to be value-oriented fail to maintain the discipline or patience required to succeed. 

Assets Under Management- $269 million (9/30/19)

View JAM's Top Holdings

(as of 9/30/19))

Read more on JAM's Philosophy.

Check out our #WeBelieve core values.

However, it is that very discipline and patience that enables the value investor to avoid getting caught up in speculative bubbles, even during periods of short term under performance. That is precisely why Jolley Asset Management was formed, to provide a vehicle whereby our focus and discipline could be preserved. 

 

1998

Founded

"Because it's never different this time."

1995-2001

Dot.com Bubble

2004

Terry Sapp, CFA Joins

FALL 2005

Looming Financial Crisis

2007-2009

Housing and Financial Crisis

JULY 2007

AUM Surpasses $100M

FALL 2016

William Collier, & Jan Robillard Join

OCTOBER 2016

Adopts Unofficial Tagline

"Because it's never different this time."

MAY 2018

Stephen Bishop, Jr. and office expansion

INVESTMENT PHILOSOPHY

JAM believes that values can occur in different types of companies and we focus our research on valuation parameters rather than hypothetical market capitalization categories. Portfolios will tend to be comprised of approximately 30-35 holdings, across various industries, sectors and market capitalization ranges. Under a value approach, portfolio companies will typically have low price/earnings, price/sales, or price/book value ratios.

 

JAM believes that buying common stocks is no different than buying a piece of a business, and the price paid for that security or business is an integral part of the investment decision making process.

 

JAM seeks to buy companies that are priced at a significant discount to their intrinsic value, with the expectation that over a reasonable time period the discount will narrow or disappear. Investments are made with the concept of a "margin of safety," which we believe lessens the chance of loss of capital.

THE GIPS STANDARDS

  • Enable investors to directly compare one firm’s track record with another firm's record.

  • Include composite presentation, improving transparency by eliminating survivorship biases, misrepresentations and historical data omissions.

  • Evolve to address issues that arise in a dynamic investment industry.

  • Incentive firms to invest significant time and resources into internal risk-control mechanisms and setting performance benchmarks — the hallmarks of reliable long-term success. (To claim compliance, an investment firm must demonstrate adherence to comprehensive rules governing input data, calculation methodology, composite construction, disclosures, and presentation and reporting.) 

The GIPS standards are voluntary and based on the fundamental principles of full disclosure and fair representation of investment performance results.

Jolley Asset Management, LLC claims compliance with the Global Investment Performance Standards.

Jolley Asset Management, LLC is defined for GIPS purposes as an independent registered investment adviser with the Securities and Exchange Commission.

A complete compliant performance presentation and a list of the firm’s composite descriptions can be obtained by calling our office at (252)451-1450.

#WeBelieve
  • We believe that great long-term investment records are made by making tough decisions, which many times may mean going against the herd mentality.

 

  • We believe that in the long-term stock prices are ultimately driven by the earnings and cash flow of a business and the risk in that enterprise is largely related to the sustainability of those cash flows.

 

  • We believe in utilizing a value approach and investing at a discount is at its very core attempting to minimize risk.This means a value investor must be a contrarian and step away from the consensus mindset.

 

  • We believe in the sentiment shared by Seth A. Klarman, President of Baupost Group who once said that “having great clients is the real key to investment success.It is probably more important than any other factor in enabling a manager to take a long-term time frame when the world is putting so much pressure on short term results.” -Seth A. Klarman, President Baupost Group

 

  • We believe that the company’s competitive position is extremely important, and we prefer to buy companies where we believe the business franchise offers us a “margin of safety.”

 

  • We believe that investing with a “margin of safety” under the value principle of Benjamin Graham, gives the investor the best chance to succeed at investing over the long term.

 

  • While we believe in paying attention to relative risk, we are more concerned with absolute risk when we purchase a security.

 

  • We believe that dividends are an important component of total returns.

 

  • We believe in the power of compounding—you don’t have to make as much in the up years, if you don’t lose as much in the down years.

 

  • We believe that focusing on the balance sheet and downside risk takes priority over the potential for capital gains.

  • We believe in using individual stocks and bonds in constructing custom portfolios based on the client’s needs, objectives and risk tolerance.  While there is a place for mutual funds and ETFs, many times this strategy may encompass two layers of fees.

 
 

© 2019 Jolley Asset Management, LLC.  Website by Rivertowns Marketing

Photo of Tar River Falls by Gerry Brabham.  Photo of JAM team and Rocky Mount by Dr. Carl Lewis, professor at North Carolina Wesleyan College.

Disclosure Statement: This website, www.jolleyasset.com, is owned and operated by Jolley Asset Management, LLC. (“JAM”). JAM offers investment advisory services and is registered with the U.S. Securities and Exchange Commission (“SEC”). SEC registration does not constitute an endorsement of the advisory firm by the SEC nor does it indicate that the advisory firm has attained a particular level of skill or ability. All content available on this Website is general in nature, not directed or tailored to any particular person, and is for informational purposes only. Neither the Website nor any of its content is offered as investment advice and should not be deemed as investment advice or a recommendation to purchase or sell any specific security. The information contained herein reflects the opinions and projections of JAM as of the date hereof, which are subject to change without notice at any time. JAM does not represent that any opinion or projection will be realized. JAM nor any of its advisers, officers, directors, or affiliates represents that the information presented on this Website is accurate, current, or complete, and such information is subject to change without notice. Any performance information must be considered in conjunction with applicable disclosures. Past performance is not a guarantee of future results. Neither this Website nor its contents should be construed as legal, tax, or other advice. Individuals are urged to consult with their own tax or legal advisers before entering into any advisory contract.

More information about Jolley Asset Management's investment advisory services can be found in its Form ADV Part 2, which is available upon request. 

Jolley Asset Management, LLC claims compliance with the Global Investment Performance Standards. Jolley Asset Management, LLC is defined for GIPS purposes as an independent registered investment adviser with the Securities and Exchange Commission. A complete compliant performance presentation and a list of the firm’s composite descriptions can be obtained by calling our office at (252)451-1450.

Terms and Conditions - Thank you for your interest in Jolley Asset Management, LLC. Please read these Terms and Conditions carefully ("Terms") before using this web site ("Site"). Your use of the Site constitutes your acceptance of these Terms.

 

Modification and Monitoring of the Site: Jolley Asset Management, LLC reserves the right, at our discretion, to change, modify, add, or remove portions of these Terms at any time. We suggest that you check these Terms periodically for changes. The Terms can be accessed from the link at the bottom of our web site pages. If you use the Site after we post changes to the Terms, you accept the changes. Jolley Asset Management, LLC reserves the right to monitor any and all use of this Site to enhance the overall experience of our web site visitors.

Third Party Content: Jolley Asset Management, LLC is in no way responsible for the content of any web site owned by a third party that may be linked to the Site via hyperlink, whether such hyperlink is provided by Jolley Asset Management, LLC or a third party.

 

In addition, Jolley Asset Management, LLC may provide hyperlinks to other web sites on the World Wide Web for your convenience in locating investment-related or other information and services. No judgment or warranty is made with respect to the accuracy, timeliness, or suitability of the content of any third party web site to which Jolley Asset Management, LLC may link, including information on the web site regarding Jolley Asset Management, LLC. By providing access to other web sites, Jolley Asset Management, LLC is not recommending the purchase or sale of a security issued by any company, nor is it endorsing products or services provided by the sponsor of any third party web site.

 

In addition, Jolley Asset Management, LLC is not responsible for content that appears on the Site that may be provided by a third party, including the content of any article reprints and any hyperlinks therein. Please link with caution.

 

Jolley Asset Management, LLC intends that the information contained on the Site is accurate and reliable, however, errors sometimes occur. Jolley Asset Management, LLC does not warrant that the information contained on the Site will be uninterrupted or error-free, that defects will be corrected, or that this Site or the services that make it available are free from viruses or harmful components.

*This sample is provided for illustrative purposes only and is not necessarily indicative of the composition of a particular client's investment portfolio or the performance of that portfolio.  Each client's investment portfolio will vary as to its holdings and the performance of those holdings based upon the client’s particular investment goals and objectives. This is not a recommendation to buy or sell any security. A complete list of current holdings and all recommendations from the past 12 months are available upon request.