The fund seeks capital appreciation in the long term by investing in large-size companies in the United States.
The investment process is designed to highlight undervalued companies that have the potential to appreciate.
The fundamental stock selection and portfolio construction methodology seeks to identify companies whose per share intrinsic value has diverged significantly from the current market price of its stock.
The process utilizes the proprietary ROTA/ROME strategy to capture valuation inefficiencies in the market.
In addition, the research team focuses on a company's Return on Total Assets and Return on Market Value of Equity criteria.
The managers use the ROTA metric to determine if a particular stock is an attractive business and ROME to determine if a particular stock is cheap or expensive.
The managers believe that companies with higher ROTAs give it an edge over its competition and a company with a higher ROME yield generally means that a stock price is lower and cheaper. Similarly, a low ROME yield means the stock price is higher and thus more expensive.
The fund holds companies that are ranked high and favorable on ROTA and ROME criteria.
