Philosophy & Process
The core of our investment philosophy is to own high quality small and mid-cap growth stocks for the long term at attractive valuations. We seek companies with a proven track record of market leadership, innovation, and consistency as well as growth opportunities beyond market expectations. We employ a bottom-up stock picking approach guided by long term trends and maintain a valuation discipline of not overpaying for growth. We believe our quality emphasis has enabled clients to participate in up markets while providing excellent downside protection during periods of market weakness.


  • Invest in companies with identifiable growth drivers
Company Specific External
  • New product development
  • Geographic expansion
  • Share gains/Industry consolidation
  • Research & Development
  • Demographic trends and changes
  • Technology developments and disruption
  • Regulatory/Legal
  • Outsourcing
  • Seek companies that can grow across multiple economic environments/cycles
  • Lower emphasis placed on cyclical growth, purchased growth, growth through financial leverage or unprofitable growth


Characteristics of a quality investment

  • Balance Sheet – strong capital position, low debt levels, financially strong
  • Long-Term Track Record – consistent long-term earnings growth, steady financial performance across multiple economic backdrops; no IPOs or early stage growth stories
  • Financial Model – strong free cash flow, high margins with operating leverage, recurring revenue streams, return on equity/capital
  • Earnings Quality – transparent results, clean/straightforward financials with no reliance on one-time earnings levers
  • Management Team – strong leadership with a proven record of execution and commitment to shareholder value

Stock Selection Process

  • Fundamentals drive the process
  • Limited reliance on Wall Street research
  • Top-down identification of themes and growth trends drives bottom-up analysis of stocks
  • Potential portfolio additions found using screens, industry research, overlap with existing holdings
  • Sell discipline – low turnover but continually re-examine justification for owning in terms of growth, quality and valuation characteristics



The Fund's investment adviser (the "Adviser") has agreed contractually, until at least April 1, 2023, to reduce its management fee and to pay the Fund's operating expenses to the extent necessary to limit the Annual Fund Operating Expenses (excluding acquired fund fees and expenses) to an amount not exceeding 1.25% of the Fund's average daily net assets. Management Fee reductions and operating expenses paid by the Adviser are subject to repayment by the Fund for a period of 3 years after such fees and expenses were incurred, provided that such repayments do not cause the Annual Fund Operating Expenses (excluding acquired fund fees and expenses) to exceed the foregoing expense limitation.


As of 12/31/2022
Minimum Investments

IRA $1,000

Additional $1,000

Portfolio Statistics

Holdings 26

Avg Weighted Market Cap $23.0B

Total Assets $38.4M

Expense Ratio

Gross 1.58%

Sales Charge
L. Roy Papp &
Associates, LLP
Phoenix, Arizona
About Us
Investment Team
The Adviser
Papp Small & Mid-Cap Fund
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L. Roy Papp & Associates, LLP | 2201 E. Camelback Road, Suite 227B, Phoenix, AZ 85016 | P 602.956.0980 | F 602.956.1985
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Mutual fund investing involves risk, including the potential loss of principal.

Small and mid‐sized companies may offer the potential for higher returns, but are also subject to greater short‐term price fluctuations than larger, more established companies. The Fund invests in a limited number of securities and, as a result, the Fund's performance may be more volatile than the performance of other funds, holding more securities. At times, the Fund's investments may represent industries or industry sectors that are interrelated or have common risks, making it more susceptible to any economic, political, or regulatory developments or other risks affecting those industries and sectors.

An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus contains this and other information about the Fund. A copy of the prospectus is available by calling Shareholder Services at 877.370.7277 or from the Literature section of this website. The prospectus should be read carefully before investing.

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The banner image is from a painting by Ed Mell that hangs in the firm's office.