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 invests primarily in equity securities that have potential for earnings or revenue growth.
In selecting securities for the portfolio, the research team utilizes a three-step process, which includes fundamental, valuation and timeliness analysis.
Fundamental analysis involves building a series of financial models, as well as conducting in-depth interviews with management.
The team seeks to find high quality, fundamentally sound issuers operating in an attractive industry.
Valuation analysis focuses on identifying attractively valued securities given their growth potential over a one- to two-year horizon.
Timeliness analysis is used to help identify the timeliness of a purchase.
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 15% of its net assets in real estate investment trusts, and may also invest up to 25% of its net assets in foreign securities.