The fund seeks capital appreciation by investing in small- and mid-size U.S. companies.
The investment process starts with a list of companies in the benchmark index and the research team uses quantitative techniques and fundamental analysis to narrow the list of investable companies.
The process is designed to highlight companies with proven earnings powers in the long term but not reflected in the current market prices.
The process looks for companies with attractive long term earnings power over five-years that includes ups and downs of the economy and various economic conditions and peaks and troughs of earnings.
The research team reviews the daily rankings of companies based on valuation and expected return based on price to earnings ratio, momentum and return on equity.
The team then focuses on the top 20% of companies for additional research and possible inclusion in the portfolio.