The fund seeks capital appreciation in the long term by investing in small-size companies in 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.
The research process is driven by fundamental analysis of one stock at a time. In selecting securities for the portfolio, the research team focuses on companies with high quality businesses and that are estimated to trade below their fair values.
The team favors companies with disciplined business plans, attractive business fundamentals, balance sheet and financial strength, proven management teams, reasonable competition, and/or a record of long-term value creation.
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 may invest up to 5% of its net assets in American Depository Receipts.