The fund seeks capital appreciation in the long term by investing in companies across any size in the United States.
The disciplined investment process is designed to identify high-quality companies that are trading at a discount to their estimated intrinsic value. The process also focuses on a company’s earnings, return on capital and growth criteria as well as management team.
The research team starts with a list of companies in the benchmark index that demonstrate consistent returns on invested capital, returns on equity, and earnings growth. In addition, the team monitors companies with recent and significant price declines.
Next, the team employs in-house valuation models to assess if a potential investment is selling at a discount to its estimated intrinsic value. The research team avoids investing in companies that appear to be inexpensive relative to their historical records, but are actually in long-term structural decline.
Also, the research team digs deeper in understanding the company’s financial statement, earnings-power, accounting policies, and unusual transactions.
The fund favors companies that are trading at attractive discounts to their long term growth expectations.
The fund also has the flexibility to hold up to 20% of its net assets in cash, cash equivalents, or short-term investments when there are not a sufficient number of currently compelling investment opportunities.
