The fund seeks maximum capital appreciation in the long term by investing in companies across any size outside the United States.
The investment process starts with a list of companies in the benchmark index and the research team utilizes quantitative techniques and fundamental analysis to identify investment opportunities.
Next, the research team seeks to identify high-quality companies that are estimated to trade below their fair values.
The team favors companies with balance sheet strength and operated by management teams aligned with shareholders’ interests.
In addition, the team considers companies having a track record of generating excellent free cash flow, improving returns on capital and superior competitive positions in their industries.
Then the team ranks the companies and generally takes larger positions in companies where the discount is greatest and smaller positions in companies with narrower discounts
Then the manager constructs a portfolio of stocks from a list of companies favored by the research team and allocates capital based on its conviction level.
The fund invests primarily in developed markets but also may invest in emerging and less developed markets.
Additionally, the fund may invest to a limited extent in equity-linked securities that provide economic exposure to a security of one or more non-US companies without direct investment in the underlying securities.
Also, the fund may invest to a limited extent in debt securities of any maturity.