The fund seeks capital appreciation in the long term by investing in companies across any size in the United States.

The fund intends to generally remain market neutral on a Beta-adjusted basis.

A Beta-adjusted market neutral strategy typically seeks to derive total returns strictly from stock picking Alpha.

The sub-adviser’s 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 long positions in securities of companies that are estimated to trade below their fair values.

Also, the team takes short positions in securities of companies that are likely to underperform the long positions over time.

In selecting securities for the portfolio, the research team utilizes the proprietary ROTA/ROME selection and portfolio construction methodology.

ROTA/ROME focuses on a company’s Return on Total Assets and Return on Market Value of Equity in order to identify companies whose per share intrinsic value has diverged significantly from the current market price of its stock. 

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 fund may invest across different industries and sectors.