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.
In selecting securities for the portfolio, the research team relies on a multi-step process.
First, the team ranks stocks from most attractive to least attractive based on measures, such as valuation, quality, growth, and sentiment.
Second, the team narrows the investable universe to a list of companies that provide the optimal balance between risk and estimated return.
Finally, the team reviews factors such as risk management, transaction costs, and liquidity management.
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 in equity securities issued by real estate investment trusts.