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.
Next, the research team focuses on companies that are lagging in market price for temporary reasons and are trading at a discount to their estimated intrinsic value and whose future earnings power is not reflected in their current valuations.
The research process is driven by fundamental analysis of one stock at a time. In selecting securities for the portfolio, the research team assesses companies through both an income statement and balance sheet approach.
In addition, the team invests in domestic and foreign issuers.
The team also focuses on either growth or value stocks or both.
In addition, the team evaluates a company’s financial condition and industry position, as well as market and economic conditions.
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.