Coronavirus Update and Action Plan
Friess Associates maintains a comprehensive business continuity plan that it updates and tests on an annual basis to enable us to navigate a host of business disruptions. Preparedness for risks posed by coronavirus, or COVID-19, is currently the firm’s top priority.
Offsite data storage and system redundancy in geographically disparate office locations (Greenville, Delaware and Jackson, Wyoming) protect against site-related disruptions, while remote capabilities allow all personnel to fulfill their day-to-day obligations from anywhere with internet access.
Remote capabilities would be heavily utilized in the event of large-scale employee absences related to a localized coronavirus outbreak and/or associated quarantine requirements. Friess Associates aggressively counsels its employees to utilize our remote capabilities whenever an employee is not feeling well to minimize the possibility of infecting fellow teammates with contagious afflictions.
Nonessential employee business travel is restricted for the foreseeable future. We will use the Centers for Disease Control and Prevention (CDC) level 2 and level 3 travel guidance as our baseline.
Although we take a company-by-company approach in building the portfolios we manage, we’re making a purposeful effort to heighten our awareness of, lower exposure to and/or avoid companies marked by various risk characteristics.
While the coronavirus outbreak is unique, it is far from the first market-moving shock that Friess Associates has confronted. Our time-tested investment approach guided us through Black Monday (1987), war in the Middle East (1991 and 2003), the bursting of the dot-com bubble (2000), the Great Recession (2007-2009) and other events that at the time represented material threats to stock prices. We will remain committed to our individual-company approach, confident that companies with strong fundamentals will attract positive attention as broader visibility improves.
We will continue to monitor the outbreak and adjust our operations and business continuity program as may be required to fully execute our investment management responsibilities. Any pertinent changes will be communicated to all clients as soon as administratively feasible.
Thanks for your long-term focus and continued confidence.