Fenimore Asset Management, manager for the FAM Funds, is looking to add a twist to its product offerings.

"I'm thinking that a socially responsible fund might be in the line for us," said Susan Lhota, marketing associate at FAM Funds. Any new fund would be the firm's third.

The Cobleskill, New York firm is known as a decidedly independent value house, having resisted the temptation of sell-out. But why would a niche firm start to cloud its focus with social responsibility?

"Our values are always so service-oriented and guided by doing the right thing that it would match our culture here," said Lhota. "It would have to be something that would be a good fit for us."

Adding the new research criterion seems a tall order for a small firm. Many firms that opt for socially-responsible funds end up sub-advising that portion of the business, but that doesn't sit with FAM Funds. "Everything is done in-house," asserted Lhota.

How can the economics of the extra research work out for a tiny value house far from the Big City?

"Since most of our companies, or many of them, tend to be financial, they tend to pass the filters anyway," explained Lhota. Furthermore, FAM's investment decisions involve very personal involvement in company management, making the foray into social responsibility just another small aspect of an on-site visit.

According to Lhota, the firm is presently "collecting masses of data and talking about it, evaluating the expense and if we could do right by it."

Nonetheless, the new investment focus is not a priority for FAM. With $376 in its two funds, the firm has more than new products to think about. Lhota admitted, "At the moment, both of our funds have a lot of room to grow, so we're primarily focusing on that." 

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