The fund seeks capital appreciation in the long term through growth of principal and income by investing in large-size companies in the United States.
The investment process is designed to highlight high-quality companies trading at attractive valuations.
The research team employs a two-step process to identify investment opportunities. In the first step the team utilizes qualitative and quantitative processes to identify quality companies with strong management, a proven business model, a wide moat to protect against competitive threats, leading brands with leading market positions.
The quantitative assessment emphasizes high returns on equity, consistent growth of earnings and revenues, above average margins, balance sheet strength, and effective allocation of cash flow (including share buy backs and dividend growth).
The second step of the process seeks to identify an event or change in circumstances at a company. The team believes that investing in the stocks of these companies at favorable moments can increase the return on investment and lower the risk profile of a given stock.
The fund generally invests broadly across industries and companies.
