The fund seeks capital appreciation in the long term and income by investing in small-size companies in the United States.
The sub-adviser’s 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 capture a liquidity premium among fundamentally strong, publicly-traded equities.
A liquidity premium is the additional return that may be realized on the sales of securities that are less liquid at the time of purchase.
In selecting securities for the portfolio, the research team focuses on companies that are estimated to trade below their fair values relative to their long-term appreciation potential.
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 also invest in growth companies.
In addition, the fund may also invest in real estate investment trusts and master limited partnerships.