The fund seeks capital appreciation and dividend income in the long term by investing in mid-size companies in the United States.
The fundamental, bottom-up research process starts by identifying stocks that are out of favor for temporary reasons. Using the valuation analysis, the research team looks for companies with earnings potential, cash flows and/or assets that are not reflected in the companies’ market values.
Next, the research team with the help of quantitative analysis assess a company’s valuation profile based on price-to-earnings or price-to-book value ratios and history of dividends.
The team then narrows the list of these undervalued companies and plans to hold them till they reflect the estimated fair value.
The fund has the flexibility to overweight its investments in certain market sectors from time-to-time.
The fund seeks capital long-term appreciation by investing in small-size U.S. companies.
The investment process starts with a list of companies included in the benchmark index. Next, the research team using quantitative research identifies companies with a proven track record but are currently out of favor with investors.
Then the team using qualitative analysis narrows the list of investable companies that are deemed to be temporarily undervalued due to market declines, poor economic conditions, actual or anticipated news regarding the company or its industry.
The investment team then favors companies that are estimated to trade at significant discounts to their long term earnings outlook and/or asset valuations.
The manager may also consider companies with a favorable track record of dividend and how likely the payment is expected to continue.
