The fund seeks capital appreciation by investing in companies across any size 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 utilizes a rules-based strategy to invest in securities of foreign and domestic companies.
The team also considers factors such as operating earnings yield, price momentum, share buyback, and trading liquidity.
In selecting securities for the portfolio, the research team focuses on stocks of historically defensive industries.
According to the team, defensive companies tend to offer basic consumer necessities where consumer demand tends to be unaffected even in poor economic conditions and therefore may have the ability to weather economic downturns better than non-defensive companies.
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.
Industries that are comprised primarily of defensive, non-cyclical companies would include, Consumer Staples, Healthcare, Aerospace & Defense, and Utilities.
The fund may also invest in ETFs, including those with inverse market exposure and leveraged ETFs.
