The fund seeks capital appreciation in the long term by investing in large-size companies in the United States.
The investment process looks for undervalued companies that are available at reasonable prices and have the potential to outperform the market in the long term and hold these stocks till they reflect the estimated fair value.
As part of its process, the research team focuses on dividend-paying companies and typically seeks to invest in companies for a period of three to five years.
Next, the team employs fundamental analysis to assess balance sheet risk, forecast earning power, determine cash flow sources/uses, and identify dividend policy.
In addition, the research process also incorporates competitive analysis to analyze business strategy, and evaluate management strengths.
Then the research team seeks to identify catalysts which may improve a company’s valuation. These catalysts include but are not limited to changes in management, improvements in a company’s capitalization and forecasted changes of return on invested capital.
Investment team then constructs a diversified fund of 40 to 60 securities. The portfolio comprises companies with earnings power potential, balance sheet and income statement strength, competitive position and overall industry prospects as well as management’s alignment with shareholders’ interests.
