The fund seeks to maximize capital appreciation in the long term by investing in companies 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 invests in securities of domestic and foreign issuers that are listed on a U.S. exchange or that are otherwise publicly traded in the United States.
However, the team may invest up to 20% of the fund’s net assets in American Depository Receipts and Global Depository Receipts.
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 that have high quality businesses and are estimated to trade below their fair values.
Additionally, the team favors companies having attributes such as attractive business fundamentals, experienced management teams, pricing power, and durable competitive advantages.
Other attributes that the team prefers in companies are financial strength, and/or high or consistently improving market position, return on invested capital and operating margins.
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 portfolio holds approximately between 35 and 45 securities.