Investments which have low capitalizations and low institutional following are good candidates for original security analysis. Mississippi-based companies should be favored for inclusion in the portfolio, because we can be more familiar with companies based here. A written report update is required at the review meeting in deciding whether to sell or hold the security. The portfolio should contain a minimum of 6 and a maximum of 15 securities. International investing is encouraged.
Liquidity is a limiting factor to achieving a favorable return on invested assets.
Sufficient access to the invested assets is required to allow for portfolio revision. The fund is not subject to federal or state taxation, and the tax situation should be considered when investing in investment vehicles. Alternatively, tax induced risk return characteristics which favor nontaxable investors should be taken advantage of within the constraints of the fund. Furthermore, the tax constraints of purchasing and selling of securities placed on individual investors, although studied and understood, play no significant role in the fund. The Wilson Fund should regard derivatives markets as an unlimited variety of payoff patterns that can be achieved by combining puts and calls with various exercise prices.