The fund seeks capital appreciation in the long term by investing in mid-size companies in the United States.
The sub advisor’s investment process starts with identifying undervalued companies that may be out of favor for temporary reasons.
The team believes that companies may be undervalued due to market declines, poor economic conditions, actual or anticipated bad news regarding the issuer or its industry.
Next, the research team using quantitative analysis highlights companies with earnings, cash flows, and/or assets that are not fully reflected in current market prices.
The team then narrows the list of these companies and plans to hold them till they reflect the estimated fair value.
The fund may consider companies that have a favorable dividend-paying history.