The fund seeks capital appreciation in the long term by investing in companies in the United States.
The investment process is designed to highlight companies in the benchmark index that are estimated to trade below their fair values.
Next, the research team utilizes fundamental analysis to identify securities that are trading at a discount to their estimated intrinsic value.
The team considers both fundamentals and technical factors when identifying investment opportunities. These considerations may include a company trading at or near its current low, and a low debt level or high interest coverage.
Other considerations may include companies that are inexpensive on the basis of earnings, and book value. The process also looks at a company's free cash flow, dividend yield, and return on equity.
The investment team also seeks to invest in companies that have a defensible competitive advantage, relevant products, competent and shareholder-oriented management, and growth.
Then the manager constructs a portfolio that holds fewer than 20 positions at any given time. From time to time, the fund may invest more than 20% of its assets in a particular sector.
The fund may also invest in foreign companies, where the investments consist primarily of depositary receipts.
The fund has the flexibility to invest up to 25% of its net assets in securities of companies located in emerging markets.
The fund may hold all or a portion of its assets in cash or cash-equivalents like money market funds, certificates of deposit, short-term debt obligations, and repurchase agreements, either due to pending investments or when investment opportunities are limited.
