The fund seeks capital appreciation in the long term by investing in mega-and large-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 in dividend paying equity securities exhibiting attractive dividend growth potential and that are trading at discounts to their intrinsic value.
The research process is driven by fundamental analysis of one stock at a time. In selecting securities for the portfolio, the research team focuses on high quality dividend paying companies with superior competitive positions in their key markets.
In addition, the team favors companies that are trading at an attractive dividend yield with durable cash flow streams and the ability to grow their dividend consistently.
The team also utilizes various research and screening tools to identify potential catalysts to unlock value.
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 portfolio holds between 35 and 45 holdings that are fully diversified across economic sectors.
Also, the fund will seek to be diversified across industry sectors as well as issuers.
Additionally, the fund may invest up to 25% of its nets assets in companies not domiciled in the U.S. by investing in American Depositary Receipts.
The fund seeks to invest in very small companies with attractive business prospect and out-of-favor stock.
Patient investors often can realize the hidden value of the company with a long term investment horizon. With the help of screens, the fund manager identifies companies with attractive fundamental metrics. Analyst team then looks for near-term catalysts for earnings or revenue growth that may not be recognized by other investors.
The Research process at the fund includes looking for insider buying and often manager purchases can be good signals to other investors in the world of micro cap.
The fund follows a strict sell discipline when the stock reaches its estimated fair value.
The market capitalization range between $100 million and $10 billion covers small and mid cap companies.
With more than 2,500 companies to choose from, the fund relies on investment screens to identify investment opportunities. Fund manager looks for companies that are out-of-favor with investors, under followed on Wall Street and maybe undergoing special situation because of the recent corporate restructuring or spin-off.
Less than 30% of the fund's asset is in the top 10 holdings. In the last five-year period, the portfolio turnover has ranged between 50% and 80%.
