Fenimore Asset Management Trust N-CSRSCertified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Thomas O. Putnam

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

FAM Funds has adopted a Code of Ethics that applies to its principal executive and principal financial officers. You may obtain a copy of this Code without charge, by calling FAM Funds at (800) 932-3271.

FAM VALUE FUND

June 30, 2022

Dear Fellow Value Fund Shareholder,

In our December 31, 2021, Annual Letter, we highlighted the risk of sustained inflation on the U.S. economy and equity markets while repeating the caveat “nobody knows” what’s going to happen. Six months later, those risks are being realized in an economic slowdown and a “bear market” in U.S. stocks.

At the end of 2021, inflation was running high due to supply chain constraints, COVID lockdowns in China, and the residual effects of fiscal and monetary stimulus. At that time, it was widely anticipated that the Federal Reserve (“the Fed”) would begin a slow and measured effort to combat inflation with higher rates and a smaller balance sheet throughout 2022. However, the Fed’s timeline was shortened dramatically with Russia’s invasion of Ukraine on February 24, which, among its many terrible consequences, caused a rapid increase in the price of oil, grains, and other commodities and helped send inflation in the U.S. to a 40-year high.

With a new sense of urgency to reduce inflation, the Fed raised the federal funds target rate aggressively in the first half of this year — including the largest increase (75 basis points) since 1994¹ — and signaled a continued hawkish stance. With rising rates and prices making goods and services less affordable, certain measures of consumer confidence have dropped to decade lows. Understandably, activity levels have slowed in areas including housing, auto, and many categories of retail.

As a result of these factors, we’ve seen a rerating of asset prices, first from the impact of higher interest rates and second from the market’s reaction to a potential recession. The areas that have been hit hardest from this rerating include many of what we would consider the more speculative areas of the market — including meme stocks, SPACs, and alternative investments such as cryptocurrencies and non-fungible tokens (NFTs).

As we’ve written in the past, we avoided what we viewed as speculative bubbles and egregiously valued moon shots and stuck to what we do best (and what’s worked for the 35 years since the FAM Value Fund was established): invest in understandable, good businesses with a competitive advantage, a strong financial position, and astute leaders, while demanding a purchase price that is below what we think the stock is worth.

Although these firms have declined in value as well, we remain confident in their long- term prospects. We couldn’t be more pleased with the quality and financial condition of the companies that we own.

Helped by our focus on quality businesses at reasonable prices, the FAM Value Fund Investor Shares (FAMVX) outperformed its benchmark in this challenging market environment, down (20.69)% versus the Russell Midcap Index down (21.57)% for the six months ended June 30, 2022.²

Portfolio Activity

In our 2021 year-end letter, we categorized our trading activity as “quiet … as valuations continued to rise and volatility remained very low.” The opposite is true for the first half of 2022. Valuations have declined, while volatility has picked up. And because we view volatility as an opportunity, our activity levels have picked up as well. In fact, we have purchased a greater dollar amount of securities in the first half of 2022 than we did throughout the entirety of 2021.

FAM VALUE FUND

Purchases

We purchased two new securities, Booking Holdings (BKNG) and Burlington Stores (BURL), and added to Amphenol (APH), Analog Devices (ADI), Clarivate (CLVT), Fidelity National Information

Services (FIS), M&T Bank (MTB), Pinnacle Financial Partners (PNFP), SouthState Corporation (SSB), and Zebra Technologies (ZBRA).

Booking Holdings (BKNG) is the world’s largest online travel agent (OTA) offering the greatest supply of accommodation (hotel/vacation rentals) properties globally. As travel continues to rebound to pre-pandemic levels, Booking Holdings is a key beneficiary. With industry-leading profit margins and opportunities to expand the business deeper into a growing menu of categories (e.g., airfares) and geographies (e.g., U.S. expansion), we see a pathway for the company to expand earnings at a healthy pace for years to come. Currently, expectations are being tempered by questions over the health of the consumer and recessionary fears. We used the resulting volatility to add to our initial position at what we estimate are more attractive prices.

Burlington Stores (BURL) is the #3 off-price retailer, following TJ Maxx (not held in the portfolio) and longtime holding Ross Stores (ROST). Increasingly, Burlington Stores is being led by former employees of Ross Stores. As the Ross playbook is further implemented at Burlington, there is an opportunity for faster inventory turns, better capital efficiency, and margin expansion. This plan, if executed, along with greater store growth opportunity, could lead to faster profit growth than their peers on a prospective basis. As 2022 progressed, it became increasingly apparent that execution would be difficult in the near term with product delays leading to understocked shelves and poor sales performance, exacerbated by continued cost headwinds from shipping, supply chain, and labor.

The result was a greater-than-expected decline in near-term earnings power. This — combined with a drastically changing retail landscape, increased inventory levels, and lower consumer confidence — led us to sell our shares in Burlington Stores while retaining our exposure to the off-price retail industry through Ross Stores. This sale freed up capital that we could invest elsewhere in this volatile environment, with the addition of harvesting tax losses for those shareholders with taxable accounts. We remain favorable on the outlook for the off-price retail space longer term and will consider the repurchase of Burlington Stores in the future.

Our addition to Zebra Technologies (ZBRA) follows the sale of half of our position in 2021. We trimmed the position as we felt the stock price continued to move above our estimate of what the business was worth. In 2022, as the stock price fell, we were able to repurchase this position at much more attractive prices in our view. This is a good example of our disciplined process at work.

Sales

To fund our purchases, we used cash on hand and made several trims/sales. We trimmed Berkshire

Hathaway (BRK.A), Brown & Brown (BRO), Clarivate (CLVT), EOG Resources (EOG), IDEX Corporation (IEX), Illinois Tool Works (ITW), and Markel Corporation (MKL).

Our complete sales included Broadridge Financial (BR), Genpact (G), Burlington Stores (BURL), and NVR Inc. (NVR).

Most of these sales were made to free up funds for our previously mentioned purchases. We decided to exit NVR following our successful purchase in June 2020. As the dynamics of the economy changed, particularly the beginning of a sharp move higher in interest rates and therefore mortgage rates, we decided to move on from NVR but believe they remain among the best operators within the homebuilding space. 

FAM VALUE FUND

Closing Thoughts

We know that bear markets and their attendant volatility can be (extremely) unpleasant, so we’d like to offer a few words of encouragement. First, prospective returns from these current levels are likely to improve. The combination of lower valuations and less aggressive earnings growth forecasts means that many companies are much more reasonably valued and should perform well over the medium to long term. History supports this outlook, as bear markets inevitably turn to bull markets and stocks reach new highs. Secondly, with the right temperament, time horizon, and investment approach, volatility creates opportunities to further enhance returns.

In times like these, many investors panic sell or are driven to liquidate positions due to leverage or other extenuating circumstances without any consideration for the long-term earnings power of the companies they are selling. At Fenimore, our research process helps us build the necessary conviction in our holdings that allows us to use volatility to our advantage and purchase shares of what we believe are great businesses at reduced prices. Our investment research team remains active re-evaluating existing holdings and performing due diligence on new names. This includes communicating with and visiting management teams across the country. If volatility continues, we expect portfolio activity to remain elevated and to improve both the quality and the expected return of our holdings.

Thank you for investing with us in the FAM Value Fund.

TOP 5 CONTRIBUTORS AND DETRACTORS* 

12/31/2021 TO 6/30/2022

Top 5 Contributors

This reflects the FAM Value Fund’s best and worst performers, in descending order, based on individual stock perfor-mance and portfolio weighting. Past performance does not indicate future results.

Top 5 Detractors

Past performance does not indicate future results.

John D. Fox, CFA	Drew P. Wilson, CFA	Marc D. Roberts, CFA
Portfolio Manager	Portfolio Manager	Portfolio Manager

FAM VALUE FUND

The opinions expressed herein are those of the portfolio managers as of the date of the report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.

Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost.

FAM VALUE FUND

TOP 10 HOLDINGS

AS OF 6/30/2022

The portfolios are actively managed and current holdings may be different.

AVERAGE ANNUAL TOTAL RETURNS 

AS OF 06/30/2022

The performance data quoted represents past performance.

Important Disclosures:

Performance data quoted above is historical. Past performance is not indicative of future results, current perfor-mance may be higher or lower than the performance data quoted. Investment returns may fluctuate; the value of your investment upon redemption may be more or less than the initial amount invested. All returns are net of expenses. To obtain performance data that is current to the most recent month-end for each fund as well as other information on the FAM Funds, please go to fenimoreasset.com or call (800) 932-3271.

Please consider a fund’s investment objectives, risks, charges and expenses carefully before investing. The FAM Funds prospectus or summary prospectus contains this and other important information about each Fund and should be read carefully before you invest or send money. To obtain a prospectus or summary prospectus for each fund as well as other information on the FAM Funds, please go to fenimoreasset.com or call (800) 932-3271.

Risk Disclosures: The principal risks of investing in the fund are: stock market risk (stocks fluctuate in response to the activities of individual companies and to general stock market and economic conditions), stock selection risk (Fenimore utilizes a value approach to stock selection and there is risk that the stocks selected may not realize their intrinsic value, or their price may go down over time), and small-cap risk (prices of small-cap companies can fluctuate more than the stocks of larger companies and may not correspond to changes in the stock market in general). 

FAM VALUE FUND

This presentation was prepared by Fenimore Asset Management, Inc. (“Fenimore”). Neither this presentation nor any of its contents may be distributed or used for any other purpose without the prior written consent of Fenimore.

In part, the purpose of this presentation is to provide investors with an update on financial market conditions. The description of certain aspects of the market herein is a condensed summary only. This summary does not purport to be complete and no obligation to update or otherwise revise such information is being assumed. These materials are provided for informational purposes only and are not otherwise intended as an offer to sell, or the solicitation of an offer to purchase, any security or other financial instrument. This summary is not advice, a recommendation or an offer to enter into any transaction with Fenimore or any of their affiliated funds.

This presentation may contain statements based on the current beliefs and expectations of Fenimore’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements.

Any references herein to any of Fenimore’s past or present investments, portfolio characteristics, or performance, have been provided for illustrative purposes only. It should not be assumed that these investments were or will be profit-able or that any future investments will be profitable or will equal the performance of these investments. There can be no guarantee that the investment objectives of Fenimore will be achieved. Any investment entails a risk of loss. Unless otherwise noted, information included herein is presented as of the date indicated on the cover page and may change at any time without notice.

Institutional Class shares became available for sale on January 3, 2017. For performance prior to that date, this table includes the actual performance of the Fund’s Investor Class (and uses the Fund’s Investor Class’ actual expenses), without adjustment. The performance results shown on this and the next page for the periods prior to January 3, 2017, the date of commencement of operations for Institutional Shares, are for the Investor Shares, which are subject to higher fees due to differences in the shareholder administrative services fees and certain other fees paid by each class. Institutional Shares and Investor Shares would have substantially similar performance results because the shares of each class are invested in the same portfolio securities of the Fund. Because of the difference in the level of fees paid by Investor Shares, the returns for the Investor Shares may be lower than the returns of the Institutional Shares. 

FAM VALUE FUND — Portfolio Data

June 30, 2022 (Unaudited)

Statement Regarding Availability of Quarterly Portfolio Schedule. Please note that (i) the Fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (the “Commission”) as of the end of the first and third quarters of each fiscal year as an exhibit to Form N-PORT; (ii) the complete listing is available on the Commission’s website at www.sec.gov; and (iii) the Fund makes the exhibit to Form N-PORT available to shareholders at fenimoreasset.com, or upon request, by calling FAM FUNDS at 1-800-932-3271. 

FAM VALUE FUND — Schedule of Investments

June 30, 2022 (Unaudited)

See Notes to Financial Statements

FAM VALUE FUND — Schedule of Investments Continued 

June 30, 2022 (Unaudited)

See Notes to Financial Statements

FAM DIVIDEND FOCUS FUND 

June 30, 2022

Dear Fellow Dividend Focus Fund Shareholder,

When we wrote to you a year ago in the 2021 Semi-Annual Letter, we emphasized that the most important question regarding the future path of the economy and stock market was the magnitude and duration of the inflationary pressures that were building.

In the first half of 2022, a combination of events, most notably the Russia-Ukraine War, pushed inflationary pressures into a worse-than-expected outcome and forced the Federal Reserve (“The Fed”) to raise interest rates more aggressively to fight against it. While these actions can be effective in curbing long-term inflation expectations, they’ve had the negative knock-on effects of lowering stock valuations (the amount an investor is willing to pay for a dollar in earnings) and increasing the probability of an economic recession in America.

It was this monetary policy backdrop that fueled one of the largest first-half declines ever for U.S. equity markets, including a (21.57)% drop in the Russell Midcap Index. Of course, the FAM Dividend Focus Fund (“the Fund”) was not immune to these macroeconomic pressures and declined (21.13)%, slightly better than our Russell Midcap benchmark.¹

What’s interesting about this bear market is how much it pre-empted any material slowdown in business activity. In the first half of the year, our investment research team met face-to-face with more than a dozen management teams of our holdings and a common takeaway was how well demand for goods and services had held up despite rising interest rates and waning consumer sentiment.

In fact, 23 of the 27 companies in the Fund are still forecasting positive earnings growth for 2022. This would result in an approximately 13% weighted average earnings growth rate for the portfolio. This means the decline in the Fund’s performance to date has been entirely driven by valuation contraction. The portfolio’s price-to-earnings ratio, a measure of valuation, decreased 31% since the beginning of the year.² Of course, profit outlooks can still be cut and valuations can continue to compress from here. However, we are confident these downturns provide us with opportunities for better long-term return prospects.

Dividend growth rates for the Fund’s holdings also continue to hold up very well. We believe a sound dividend growth policy is an indicator that the company generates more cash than is needed to run the business and that management is confident in the stability and growth of the operation’s future cash generation.

Since the beginning of the year, 16 of 27 of our holdings have announced dividend increases, with the average increase being 13%. This continues to outpace the rate of inflation. The list includes six companies that, in their most recent quarter, paid dividends that were more than 20% higher than the prior year time period, including: CDW (CDW), Cintas (CTAS), Entegris (ENTG), Microchip Technology (MCHP), Paychex (PAYX), and Pool Corporation (POOL).³

Portfolio Activity

During the first half of 2022, our portfolio turnover ticked up slightly after 18 months of almost no activity. We remain very happy with the composition of the Fund, but looked to take advantage of the recent increase in market volatility to augment positions in some of our existing names while also investing in a new company. 

FAM DIVIDEND FOCUS FUND

Purchases

Our four additions during the first half of the year were in label and tag maker Avery Dennison (AVY), business process outsourcer Genpact (G), replacement aircraft parts manufacturer HEICO (HEI.A), and payroll processor Paychex (PAYX).

We initiated a position in Watsco (WSO), a market-leading HVAC distributor primarily in the sunbelt states. This was the Fund’s first new purchase since November 2020. Watsco experienced robust demand over the last two years and we believe they remain well-positioned to benefit from secular tailwinds including higher energy efficiency standards, refrigerant changes, demand for improved indoor air quality, and growing electrification of heating and cooling equipment.

Sales

We also exited two positions. The first was data center Digital Realty (DLR), which we believed would be negatively impacted by rising interest rates and struggles with growing customer concentration among large technology titans — namely Google, Amazon, Facebook, and Microsoft.

The other sale was our small position in Graco (GGG), a maker of industrial spraying equipment. We did not have reservations about GGG as we did DLR, but rather looked to concentrate capital in other names.

We also trimmed our position in First Hawaiian Bank (FHB), a regional bank in Hawaii. Like GGG, we used the proceeds to help fund purchase activity.

Closing Thoughts

As we look to the second half of the year, uncertainty undoubtedly remains high. The magnitude and duration of the inflationary environment and whether the Fed’s policies will force the U.S. economy into a recession remain unknown (and, in our opinion, unanswerable with any certainty).

And while we spend considerable time trying to ensure our companies can navigate these turbulent times, our focus remains on compounding over the long term. We feel confident that our holdings’ long-term prospects are intact and that, on-average, they should continue to deliver profit and dividend growth in excess of inflation.

As always, we are incredibly grateful to all our shareholders and thank you for your continued support.

TOP 5 CONTRIBUTORS AND DETRACTORS* 

12/31/2021 TO 6/30/2022

Top 5 Contributors

This reflects the FAM Dividend Focus Fund’s best and worst performers, in descending order, based on individual stock performance and portfolio weighting. Past performance does not indicate future results. 

FAM DIVIDEND FOCUS FUND

Top 5 Detractors

Past performance does not indicate future results.

Paul C. Hogan, CFA	William W. Preston, CFA
Portfolio Manager	Portfolio Manager

The opinions expressed herein are those of the portfolio managers as of the date of the report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.

Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost.

Securities offered through Fenimore Securities, Inc. Member FINRA/SIPC, and advisory services offered through Fenimore Asset Management, Inc. 

FAM DIVIDEND FOCUS FUND

TOP 10 HOLDINGS 

AS OF 6/30/2022

The portfolios are actively managed and current holdings may be different.

AVERAGE ANNUAL TOTAL RETURNS 

AS OF 6/30/2022

The performance data quoted represents past performance.

Important Disclosures:

Performance data quoted above is historical. Past performance is not indicative of future results, current perfor-mance may be higher or lower than the performance data quoted. Investment returns may fluctuate; the value of your investment upon redemption may be more or less than the initial amount invested. All returns are net of expenses. To obtain performance data that is current to the most recent month-end for each fund as well as other information on the FAM Funds, please go to fenimoreasset.com or call (800) 932-3271.

Please consider a fund’s investment objectives, risks, charges and expenses carefully before investing. The FAM Funds prospectus or summary prospectus contains this and other important information about each Fund and should be read carefully before you invest or send money. To obtain a prospectus or summary prospectus for each fund as well as other information on the FAM Funds, please go to fenimoreasset.com or call (800) 932-3271.

Risk Disclosures: The principal risks of investing in the fund are: stock market risk (stocks fluctuate in response to the activities of individual companies and to general stock market and economic conditions), stock selection risk (Fenimore utilizes a value approach to stock selection and there is risk that the stocks selected may not realize their intrinsic value, or their price may go down over time), and small-cap risk (prices of small-cap companies can fluctuate more than the stocks of larger companies and may not correspond to changes in the stock market in general).

This presentation was prepared by Fenimore Asset Management, Inc. (“Fenimore”). Neither this presentation nor any of its contents may be distributed or used for any other purpose without the prior written consent of Fenimore. 

FAM DIVIDEND FOCUS FUND

In part, the purpose of this presentation is to provide investors with an update on financial market conditions. The description of certain aspects of the market herein is a condensed summary only. This summary does not purport to be complete and no obligation to update or otherwise revise such information is being assumed. These materials are provided for informational purposes only and are not otherwise intended as an offer to sell, or the solicitation of an offer to purchase, any security or other financial instrument. This summary is not advice, a recommendation or an offer to enter into any transaction with Fenimore or any of their affiliated funds.

This presentation may contain statements based on the current beliefs and expectations of Fenimore’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements.

Any references herein to any of Fenimore’s past or present investments, portfolio characteristics, or performance, have been provided for illustrative purposes only. It should not be assumed that these investments were or will be profit-able or that any future investments will be profitable or will equal the performance of these investments.

There can be no guarantee that the investment objectives of Fenimore will be achieved. Any investment entails a risk of loss. Unless otherwise noted, information included herein is presented as of the date indicated on the cover page and may change at any time without notice.

FAM DIVIDEND FOCUS FUND — Portfolio Data 

June 30, 2022 (Unaudited)

Statement Regarding Availability of Quarterly Portfolio Schedule. Please note that (i) the Fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (the “Commission”) as of the end of the first and third quarters of each fiscal year as an exhibit to Form N-PORT; (ii) the complete listing is available on the Commission’s website at www.sec.gov; and (iii) the Fund makes the exhibit to Form N-PORT available to shareholders at fenimoreasset.com, or upon request, by calling FAM FUNDS at 1-800-932-3271. 

FAM DIVIDEND FOCUS FUND — Schedule of Investments 

June 30, 2022 (Unaudited)

See Notes to Financial Statements

FAM DIVIDEND FOCUS FUND — Schedule of Investments Continued 

June 30, 2022 (Unaudited)

See Notes to Financial Statements 

FAM SMALL CAP FUND 

June 30, 2022

Dear Fellow Small Cap Fund Shareholder,

During the first half of 2022, the FAM Small Cap Fund Investor Shares (FAMFX) declined (15.66)%. Our primary benchmark index, the Russell 2000, dropped (23.43)% during the same period. Since our inception on March 1, 2012, the Small Cap Fund Investor Shares returned 10.47% versus the Russell 2000’s 8.88%.¹

The first half of the year was a rather difficult period with waves of interrelated issues, including: supply chain bottlenecks; labor inflation and shortages; the war in Ukraine; spiking inflation, which includes much needed commodities; higher interest rates; some early signs that higher interest rates are slowing demand in pockets; and concerns that ultimately the higher interest rates will push the economy into a recession.

We too are concerned by these issues and most of our companies are negatively impacted by one or more of them. However, none of the problems appear too severe so far and we remain convinced that our holdings are well positioned to not only weather the storm, but to continue to grow profits very nicely over the long term. It is definitely frustrating to watch our stock prices decline, but we believe, ultimately, “this too shall pass.” Today’s difficulties should be added to the long list of recessions, inflationary periods, wars, panics, pandemics, and more that our great country has pushed through on its way to increased prosperity. It is this long-term growth in prosperity and profits that we believe should drive our stock prices higher.

Focused On Quality/Value Investing

Longtime shareholders have heard us proclaim the advantages of a “quality/value investing” approach for many years, but it is worth repeating during these challenging days.

Our goal is to own companies with competitive advantages that allow them to be more profitable and have a brighter future than the average business. Furthermore, we like them to possess relatively clean balance sheets and generate ample cash profits. They may use debt strategically, but ideally never to excess.

While inflation and/or recessions undoubtedly hurt company profits, a business with high profit margins and in sound financial condition can absorb these problems much easier than one with thin margins and too much debt. This doesn’t mean our holdings can dodge bullets. They are definitely impacted by the broader environment of inflation, higher interest rates, and potentially an economic downturn — but so far we believe all of them can deal with whatever economic situation that may develop.

Ultimately, what will matter is the longer-term growth in earnings. If our holdings can continue to grow by beating their competitors, providing value to customers, and using their capital wisely, then eventually their earnings power should grow and share prices should advance as well.

What We Don’t Do — Speculate

What we do in managing the FAM Small Cap Fund is important, but what we don’t do may be even more critical. We don’t speculate. Not with your hard-earned capital or ours. When other “investors” are routinely buying proverbial lottery tickets and winning, we may look hopelessly dull and crusty. But we believe prudence wins in the end.

Cycles of speculative excess followed by regret reoccur throughout history, so it may not be surprising to find great quotes from long ago that are still relevant:

“I can calculate the movement of the stars, but not the madness of men.”

– Sir Isaac Newton after apparently losing money in the South Sea Bubble, which popped in 1720 

FAM SMALL CAP FUND

“Investment is most intelligent when it is most businesslike.”

– Benjamin Graham, Chapter 20 of The Intelligent Investor, first published in 1949

The winter of 2020/2021 may have been the peak of the most recent speculative excesses seen among small-cap stocks. Not participating (or “remaining prudent”) definitely hurt our relative performance at the start, but the unwinding of these excesses was a major factor in our relative outperformance in 2021 and for the first six months of 2022.

Our 2020 Annual Letter included the following paragraph:

“Speculators are always around. History is filled with stories of ‘get-rich-quick schemes’ and speculative bubbles. For whatever reason, speculation seems more common lately. We see excesses in many areas including the excitement over the revolutions in electric vehicles and genomics, the hope the Biden administration will trigger a boom in renewable power, work-from-home “plays,” and a surge in online trading (and usage of leverage and options) by individual investors. Many of these investors seem to be riding high on the excitement of recent gains, but we believe many might ultimately be disappointed.”

Rather than buying a share and hoping that some “greater fool” comes along to pay an even higher price, we continue to focus on the fundamentals of quality investing. We still seek impressive companies that are: both highly profitable today and likely to be so for many years; run by talented and ethical leadership teams; and in solid financial shape. When they occasionally trade at attractive valuations, we try to buy more shares. Our goal is to do this while never getting carried away when greed or fear runs rampant. We think that our fundamental approach should lead to long-term investment success.

Performance Contributors and Detractors

Our five largest contributors to performance in the first half of 2022 were Ollie’s Bargain Outlet Holdings (OLLI), Hostess Brands (TWNK), ExlService Holdings (EXLS), CBIZ (CBZ), and U.S. Physical Therapy (USPH). Each of these companies has a different story, but essentially Hostess, ExlService, CBIZ, and U.S. Physical Therapy are all solid businesses, in our opinion, with limited cyclicality or exposure to inflation risks. This appears to have made them favorites in this seemingly risky environment. In the case of Ollie’s, investors seem to realize that the burden of higher shipping costs is likely to lessen going forward and the significant amount of excess goods available to discounters like Ollie’s could be a nice tailwind.

Our five largest detractors were Carriage Services (CSV), Colliers International Group (CIGI), Choice Hotels International (CHH), Trisura Group (TSU), and Pinnacle Financial Partners (PNFP). In each case, it appears that investors are concerned about a slowing economy and potentially lower earnings. This is despite each of these holdings reporting fine earnings so far in 2022 and giving no indications that they are expecting a material drop in profitability.

The issue with Carriage, which owns funeral homes and cemeteries, is less about the economy. Results have been excellent, but investors wonder how much is due to management’s execution and how much is the sad result of a higher death rate in 2020 and 2021. Time will tell, but either way we believe they should do well over the medium to long term.

We remain patient, long-term holders of quality businesses and are not concerned about any potential short-term declines in earnings — as long as we remain convinced that each company can be much larger and more profitable in the long term.

Portfolio Activity

We entered 2022 with what we considered to be a fine collection of quality businesses run by strong leaders. In each case, when we established these positions, we realized that if we want to be long-term holders, then it is inevitable we will face recessions, wars, inflation, and the like. We favor enterprises that are not overly impacted by these issues, usually have some ability to raise prices as needed, have considerable cash profits, and demonstrate an ability to reinvest at impressive rates of return. In short, we believe each Small Cap Fund holding should be able to power through and grow profits significantly over the long term.

FAM SMALL CAP FUND

As a result, generally we were well prepared and did not feel any pressure to make large, wholesale changes in the portfolio. However, we are always interested in improving our collection of businesses. As stock prices stumbled downward in recent months, we took advantage of several opportunities — both adding to existing positions as well as introducing three new ideas.

Purchases

The most straightforward opportunities were to purchase additional shares in the businesses we already own. In virtually every case, we have spent years getting to know these companies – this puts us in what we believe is a nice position to take advantage of opportunities. So far in 2022, we have added to our positions in Boston Omaha (BOMN), Carriage Services (CSV), Descartes Systems (DSGX), Frontdoor (FTDR), Home Bancshares (HOMB), Nomad Foods (NOMD), Ollie’s Bargain Outlet Holdings (OLLI), and SPS Commerce (SPSC).

Additionally, we took advantage of falling prices to establish new positions in Hagerty (HGTY), FirstService Corporation (FSV), and Floor & Decor (FND).

We built a position in Hagerty. Hagerty is the largest provider of auto insurance for collectible automobiles including antiques, exotic super cars, and muscle cars. Hagerty has several advantages over competitors including extensive valuation data, a highly specialized claims adjusting network, selling agreements with several major standard auto insurers, and a collection of related businesses (such as running major auto shows that improve the customer experience).

Hagerty makes most of their money from managing the insurance program for a commission and then shares in the insurance risk (and usually profits) with Markel Corp (MKL), a longtime holding in the FAM Value Fund. Markel is also a significant owner of Hagerty shares. Currently, Hagerty is spending considerable time and money setting up an integrated referral system with State Farm that should add materially to profitability as State Farm’s collector car policies move to Hagerty. Longer term, Hagerty should be able to keep pressing their advantages and grow market share.

After years of studying and waiting for the right opportunity, we finally purchased shares in FirstService as the stock price declined. FirstService has two divisions. FirstService Residential is the largest North American manager of condo and homeowners’ associations. They collect the rent, staff the offices, manage the grounds, and take care of a litany of back-office functions for a fee. Size gives them several advantages over their local competitors. The second division, FirstService Brands, houses a collection of businesses including two major restoration brands (e.g., repairs after a fire or flood) and home service brands like California Closets and CertaPro Painters.

FirstService is a fairly asset-light operation that generates considerable free cash flow, which historically management reinvests through acquisitions of smaller players to build up their brands. Colliers International Group, another holding in the portfolio, was incubated at FirstService before being spun off as a separate firm in 2015.

Long-term shareholders may remember that we purchased shares in Floor & Decor Holdings in 2019 and 2020, later selling them in 2021 for a nice gain. At that time, the price had advanced enough that we could no longer view it as a small business so it fell outside of our targeted universe. As stock prices fell in 2022, Floor & Decor returned to an attractive valuation, in our view, and a level we felt made it once again a “small-cap” company. We are big fans and pleased to be investors again.

The thesis for Floor & Decor has not changed, but they are further along in executing their plan. They simply have a better mousetrap, with much more selection and/or better prices than the small “mom-and-pop” retailers and large home improvement store chains. While inflation, higher interest rates, and potentially slowing demand could all impact near-term results (which is why the stock price declined), we believe the long- term potential remains outstanding. Floor & Decor should be able to keep opening new stores and grow market share for many years. 

FAM SMALL CAP FUND

Sales

To fund these purchases, we had to sell and trim a few positions. In the case of each sale, we believe we sold “good” businesses to buy “great” businesses. Sales included U.S. Physical Therapy (USPH), Cambridge Bancorp (CATC), and Monro (MNRO). We trimmed shares in ExlService Holdings (EXLS), Penske Automotive Group (PAG), and OneSpaWorld Holdings (OSW).

Closing Thoughts

The first half of 2022 was marked by a great many issues of concern. Investors don’t like fear. At some point, investors may gain some clarity on some of these issues. Inflationary pressures might ease as the weight of higher interest rates lowers demand.

Entrepreneurs responding to higher prices by adding capacity in areas like container shipping, warehouses, and trucking, may help supply chains normalize. The war in Ukraine might end. Oil production might begin to accelerate, lowering prices.

When stress is high investors often forget that conditions can improve. We believe that eventually all these issues should begin to abate or at least we should be better able to handicap the magnitude of the impact on corporate profits. This is one of the reasons we remain long-term optimists.

Our plan from here is to keep following our quality/value investing process. We want to own shares in 25 to 30 companies that can post better-than-average stock performance over the medium to long term. To do this, we must keep studying our holdings, regularly confirming our thesis on each firm. We must make sure that they really are as impressive as we thought.

Simultaneously, we continue to learn about potential new investments. Occasionally, we must take advantage of mispriced securities by making purchases. Hopefully, by carefully studying a limited number of excellent enterprises, we can make the right portfolio decisions that lead to impressive long-term results.

10TH Anniversary

Our team was proud to celebrate the 10 -year anniversary of the FAM Small Cap Fund in early March. We will continue to strive to deliver strong long-term performance while mitigating risk. As always, we are grateful and honored that you trust us with your hard- earned capital. Thank you for investing with us.

TOP 5 CONTRIBUTORS AND DETRACTORS* 

12/31/2020 TO 12/31/2021

Top 5 Contributors

This reflects the FAM Small Cap Fund’s best and worst performers, in descending order, based on individual stock performance and portfolio weighting. Past performance does not indicate future results.

FAM SMALL CAP FUND

Top 5 Detractors

Past performance does not indicate future results.

Andrew F. Boord	Kevin D. Gioia, CFA
Portfolio Manager	Portfolio Manager

The opinions expressed herein are those of the portfolio managers as of the date of the report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.

Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost.

FAM SMALL CAP FUND

TOP 10 HOLDINGS 

AS OF 6/30/2022

The portfolios are actively managed and current holdings may be different.

AVERAGE ANNUAL TOTAL RETURNS AS OF JUNE 30, 2022

The performance data quoted represents past performance.

Important Disclosures:

Performance data quoted above is historical. Past performance is not indicative of future results, current performance may be higher or lower than the performance data quoted. Investment returns may fluctuate; the value of your investment upon redemption may be more or less than the initial amount invested. All returns are net of expenses. To obtain performance data that is current to the most recent month-end for each fund as well as other information on the FAM Funds, please go to fenimoreasset.com or call (800) 932-3271.

Please consider a fund’s investment objectives, risks, charges and expenses carefully before investing. The FAM Funds prospectus or summary prospectus contains this and other important information about each Fund and should be read carefully before you invest or send money. To obtain a prospectus or summary prospectus for each fund as well as other information on the FAM Funds, please go to fenimoreasset.com or call (800) 932-3271.

Risk Disclosures: The principal risks of investing in the fund are: stock market risk (stocks fluctuate in response to the activities of individual companies and to general stock market and economic conditions), stock selection risk (Fenimore utilizes a value approach to stock selection and there is risk that the stocks selected may not realize their intrinsic value, or their price may go down over time), and small-cap risk (prices of small-cap companies can fluctuate more than the stocks of larger companies and may not correspond to changes in the stock market in general).

This presentation was prepared by Fenimore Asset Management, Inc. (“Fenimore”). Neither this presentation nor any of its contents may be distributed or used for any other purpose without the prior written consent of Fenimore. 

FAM SMALL CAP FUND

In part, the purpose of this presentation is to provide investors with an update on financial market conditions. The description of certain aspects of the market herein is a condensed summary only. This summary does not purport to be complete and no obligation to update or otherwise revise such information is being assumed. These materials are provided for informational purposes only and are not otherwise intended as an offer to sell, or the solicitation of an offer to purchase, any security or other financial instrument. This summary is not advice, a recommendation or an offer to enter into any transaction with Fenimore or any of their affiliated funds.

This presentation may contain statements based on the current beliefs and expectations of Fenimore’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements.

Any references herein to any of Fenimore’s past or present investments, portfolio characteristics, or performance, have been provided for illustrative purposes only. It should not be assumed that these investments were or will be profit-able or that any future investments will be profitable or will equal the performance of these investments. There can be no guarantee that the investment objectives of Fenimore will be achieved. Any investment entails a risk of loss. Unless otherwise noted, information included herein is presented as of the date indicated on the cover page and may change at any time without notice.

Institutional Class shares became available for sale on January 1, 2016. For performance prior to that date, this table includes the actual performance of the Fund’s Investor Class (and uses the Fund’s Investor Class’ actual expenses), without adjustment. The performance results shown on this and the next page for the periods prior to January 1, 2016, the date of commencement of operations for Institutional Shares, are for the Investor Shares, which are subject to higher fees due to differences in the shareholder administrative services fees and certain other fees paid by each class. Institutional Shares and Investor Shares would have substantially similar performance results because the shares of each class are invested in the same portfolio securities of the Fund. Because of the difference in the level of fees paid by Investor Shares, the returns for the Investor Shares will be lower than the returns of the Institutional Shares. 

FAM SMALL CAP FUND — Portfolio Data 

June 30, 2022 (Unaudited)

Statement Regarding Availability of Quarterly Portfolio Schedule. Please note that (i) the Fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (the “Commission”) as of the end of the first and third quarters of each fiscal year as an exhibit to Form N-PORT; (ii) the complete listing is available on the Commission’s website at www.sec.gov; and (iii) the Fund makes the exhibit to Form N-PORT available to shareholders at fenimoreasset.com, or upon request, by calling FAM FUNDS at 1-800-932-3271. 

FAM SMALL CAP FUND — Schedule of Investments 

June 30, 2022 (Unaudited)

See Notes to Financial Statements

FAM SMALL CAP FUND — Schedule of Investments Continued 

June 30, 2022 (Unaudited)

See Notes to Financial Statements 

See Notes to Financial Statements 

See Notes to Financial Statements 

See Notes to Financial Statements

See Notes to Financial Statements

FAM FUNDS — Statements of Changes in Net Assets

See Notes to Financial Statements

Note 1.  Nature of Business and Summary of Significant Accounting Policies

FAM Value Fund, FAM Dividend Focus Fund and FAM Small Cap Fund (individually a “Fund”, and collectively, the “Funds”) are each a series of Fenimore Asset Management Trust, a diversified, open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”).

Each Fund is authorized to issue two classes of shares: Investor Shares and Institutional Shares. The Investor Shares and the Institutional Shares represent interests in the same portfolio of investments in each Fund, however, each class of shares is subject to different expenses and have different investment minimums. Each share class has exclusive voting rights with respect to matters that affect just that class of shares. As of the date of this report, Institutional Shares of the FAM Dividend Focus Fund are not currently offered.

The investment objective of the FAM Value Fund is to maximize long-term return on capital. The investment objective of the FAM Dividend Focus Fund is to provide current income and long-term capital appreciation from investing primarily in income-producing equity securities. The investment objective of the FAM Small Cap Fund is to maximize long-term return on capital.

Each Fund is an investment company and accordingly follows accounting and reporting guidance of the Financial Accounting Standards Board Accounting Standards Codification Topic 946 “Financial Services – Investment Companies.” The following is a summary of each Fund’s significant accounting policies, which are in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and followed by the Funds in the preparation of their financial statements.

Each Fund values its portfolio securities at market value as of the close of regular trading on the New York Stock Exchange, Inc. (the “NYSE”) (normally 4:00 p.m. Eastern time) on each business day that the NYSE is open for business. Securities traded on a national securities exchange or admitted to trading on NASDAQ are valued at the last reported sale price or the NASDAQ official closing price. Securities for which no sale was reported, over-the-counter securities, and securities for which market quotations are not readily available or have not traded are valued at fair value as determined by procedures established by the Board of Trustees. Investments in other open-end investment companies, including money market funds, are valued at their net asset value (“NAV”) as reported by such companies.

GAAP establishes a three-tier framework for measuring fair value based on a hierarchy of inputs. The hierarchy distinguishes between market data obtained from independent sources (observable inputs) and the Funds’ own market assumptions (unobservable inputs).

These inputs are used in determining the value of each Fund’s investments. These inputs are summarized in the three broad levels listed below:

Level 1 – quoted prices in active markets for identical securities

Level 2 – other significant observable inputs (including quoted prices for identical securities in inactive markets and quoted prices for similar securities)

Level 3 – significant unobservable inputs (including each Fund’s own assumptions in determining the fair value of investments)

The inputs or methods used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement. 

The following is a summary of each Fund’s investments and the inputs used to value the investments as of June 30, 2022:

The Funds did not hold any derivative instruments or any assets or liabilities that were measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of or during the six months ended June 30, 2022.

Refer to each Fund’s Schedule of Investments to view securities segregated by industry type.

Investment transactions are recorded on trade date. Realized gains and losses on investments sold are determined on the basis of identified cost.

Interest income, if any, is accrued as earned, and dividend income is recorded on the ex-dividend date. Withholding taxes on foreign dividends have been recorded in accordance with the Trust’s understanding of the applicable country’s tax rules and tax rates. Non-cash dividends are included in dividend income on the ex-dividend date at the fair market value of the shares received. The Funds record distributions received in excess of income from underlying investments as a reduction of cost of investments and/ or realized gain. Such amounts are based on estimates if actual amounts are not available, and actual amounts of income, realized gain and return of capital may differ from the estimated amounts. The Funds adjust the estimated amounts of the components of distributions (and consequently its net investment income) as an increase to unrealized appreciation (depreciation) and realized gain (loss) on investments as necessary once the issuers provide information about the composition of the distributions.

The NAV per share of each Class of shares of each Fund is calculated daily by dividing the total value of a Fund’s assets attributable to that Class, less liabilities attributable to that Class, by the number of shares of that Class outstanding. 

Dividends from net investment income are declared and paid quarterly by the FAM Dividend Focus Fund, if applicable. Dividends from net investment income, if any, are declared and paid on an annual basis by each of the FAM Value Fund and FAM Small Cap Fund. Dividends are declared separately for each share class. No share class has preferential dividend rights; differences in per share rates are due to differences in the expenses of each share class. Net realized capital gains, if any, are distributed at least annually. Distributions from net investment income and from net realized capital gains are determined in accordance with U.S. income tax regulations, which may differ from GAAP. Permanent book and tax basis differences, if any, are reclassified among the components of net assets. Dividends and distributions to shareholders are recorded on the ex-dividend date.

It is each Fund’s policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to its shareholders. Therefore, no provision for federal income or excise tax is required.

GAAP requires uncertain tax positions to be recognized, measured, presented and disclosed in the financial statements. For the six months ended June 30, 2022, management has evaluated the tax positions taken or expected to be taken in the course of preparing each Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained upon review by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold would be recorded as a tax expense in the current year. Based on its evaluation, management has determined that no liability for unrecognized tax expense is required. The current tax year and all open tax years (generally, three years) remain subject to examination by U.S. and New York taxing authorities. No examination of the Funds’ tax filings is presently in progress.

Expenses of the Trust not attributable solely to one of the Funds are allocated among the Funds based on relative net assets of each Fund or the nature of the expense and the relative applicability to each Fund.

Investment income earned, realized capital gains and losses, and unrealized appreciation and depreciation are allocated daily to each Class of a Fund based upon its proportionate share of total net assets of that Fund. Class-specific expenses are charged directly to the Class incurring the expense. Common expenses which are not attributable to a specific Class are allocated daily to each Class of shares of a Fund based upon its proportionate share of total net assets of that Fund.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

Note 2.  Investment Advisory Fees and Other Transactions with Affiliates

Investment Advisory Agreement

Under an Investment Advisory Agreement, each Fund pays an investment advisory fee to Fenimore Asset Management, Inc. (the “Advisor”) equal, on an annual basis, to 0.90% of its average daily net assets. In addition, under a Business Management Agreement, each Fund pays a business management fee to the Advisor equal, on an annual basis, to 0.03% of its average daily net assets. During the six months ended June 30, 2022, the Adviser earned $6,836,856, $2,597,678 and $1,327,293 of fees under the Investment 

Advisory Agreement for FAM Value Fund, FAM Dividend Focus Fund and FAM Small Cap Fund, respectively and earned $228,884, $86,957 and $44,449 of fees under the Business Management Agreement for FAM Value Fund, FAM Dividend Focus Fund and FAM Small Cap Fund, respectively.

Expense Limitation Agreement

Pursuant to an Expense Limitation Agreement (the “ELA”) entered into between the Advisor and the Trust, on behalf of each Fund, the Advisor has contractually agreed, until May 1, 2023, to reduce its fees and/or reimburse certain expenses (excluding interest, taxes, brokerage costs, Acquired Fund Fees and Expenses, dividend expense, litigation, indemnification or extraordinary expenses) to the extent necessary to maintain annual operating expenses of each class of shares of each of the Funds as follows: for the Investor Shares: 1.18% for FAM Value Fund, 1.26% for FAM Dividend Focus Fund and 1.42% for FAM Small Cap Fund; and for the Institutional Shares: 0.99% for FAM Value Fund, 1.10% for FAM Dividend Focus Fund and 1.20% for FAM Small Cap Fund.

During the six months ended June 30, 2022, pursuant to the terms of the ELA, the Advisor reduced its fees for FAM Value Fund in the amount of $39,744. The FAM Dividend Focus Fund and the FAM Small Cap Fund did not have any advisory fee reductions during the six months ended June 30, 2022.

The Advisor may be reimbursed by the Funds for any fees waived pursuant to the ELA if such payment is made within three years of the fee waiver and does not cause the total annual Fund operating expenses after fee waiver (excluding interest, taxes, brokerage costs, Acquired Fund Fees and Expenses, dividend expense, litigation, indemnification or extraordinary expenses) of the Funds to exceed the lesser of (i) the then-current expense limit and (ii) the expense limit in place at the time the waiver. As of June 30, 2022, the amounts of previously reduced fees that the Advisor may recoup from the FAM Value Fund are shown below, along with the expiration dates of such recoupments:

Shareholder Administration Services

The Funds have adopted Shareholder Administrative Services Plans (the “Plans”) for each class of shares pursuant to which each Fund may pay shareholder administrative servicing fees to the Advisor and to financial intermediaries for providing, or arranging for the provision of, certain types of shareholder administrative services to shareholders of each respective class of shares that are serviced by the Advisor, affiliates of the Advisor or the financial intermediary. Pursuant to the Shareholder Administrative Services Plan for Investor Shares, the Investor Shares of each Fund may pay shareholder administrative servicing fees of up to 0.25% per annum of the average daily net assets allocable to Investor Shares of each respective Fund; and pursuant to the Shareholder Administrative Services Plan for Institutional Shares, the Institutional Shares of each Fund may pay shareholder administrative servicing fees of up to 0.15% per annum of the average daily net assets allocable to Institutional Shares of each respective Fund.

For the six months ended June 30, 2022, shareholder administrative fees incurred pursuant to the Plans were as follows:

Shareholder Account Services

Pursuant to the terms of the Shareholder Account Services Agreement between the Funds and the Advisor, for the purpose of providing or procuring shareholder account services, with respect to the Investor Shares of the Funds, the Advisor receives a fee at the annual rate of 0.11% of the average daily net assets allocable to the Investor Shares of each Fund, and, pursuant to the terms of the Shareholder Account Services 

FAM FUNDS — Notes to Financial Statements (Unaudited)

Agreement between the Funds and the Advisor with respect to the Institutional Shares of the Funds, the Advisor receives a fee at the annual rate of 0.03% of the average daily net assets allocable to the Institutional Shares of each Fund. For the six months ended June 30, 2022, shareholder account servicing fees incurred by the Funds to the Advisor were as follows:

Fund Accounting

The Advisor serves as the fund accounting agent and receives a fee at the annual rate of 0.07% on each Fund’s average daily net assets. For the six months ended June 30, 2022, the Funds’ fund accounting fees incurred to the Advisor amounted to:

Distribution Agreement

Fenimore Securities, Inc. (“FSI”), a company also under common control with the Advisor, acts as distributor of the Funds’ shares. FSI receives no compensation for providing distribution services from the Funds.

Compliance

Ultimus Fund Solutions, LLC (“Ultimus”) provides the Chief Compliance Officer to the Funds, as well as certain additional compliance support functions. The Funds pay Ultimus fees in accordance with the agreement for such services. During the six months ended June 30, 2022, the fee paid by each Fund for such services was $10,000.

Other

The Advisor has entered into a Master Services Agreement with Ultimus, pursuant to which Ultimus provides day-to-day operational services to each Fund including, but not limited to, accounting, administrative, co-transfer agency services and recordkeeping services. The fees payable to Ultimus are paid by the Advisor (not the Funds).

A Trustee and certain officers of the Trust are also officers or employees of the Advisor, FSI, or Ultimus, as applicable.

Note 3.  Shares of Beneficial Interest

At June 30, 2022, an unlimited number of shares of beneficial interest ($0.001 par value) of each Fund were authorized. 

FAM FUNDS — Notes to Financial Statements (Unaudited)

Transactions for each Fund are as follows:

During the six months ended June 30, 2022, purchases and sales of investment securities, other than short-term obligations, were:

The tax composition of dividends and distributions paid to shareholders during the periods ended June 30, 2022 and December 31, 2021 was: