The fund seeks total return by investing in companies in the United States.
The investment process is designed to highlight companies in the benchmark index that have above average intellectual property portfolios.
The process relies on fundamental analysis to identify undervalued companies with strong business models, which may provide for lower levels of market volatility or non-correlated volatility,
In selecting securities for the fund, the research team focuses on factors such as superior earnings and dividend growth.
The team considers companies that have established markets and operations and generate excess cash flow. Other attributes in focus would be a company’s ability to thrive in good markets and survive potential economic setbacks.
Then the manager employs detailed quantitative assessments to construct the portfolio.
The manager assesses the strength of the company’s intellectual property portfolio, consistency of earnings growth, dividend yield, and availability at reasonable earnings valuation multiple.
In addition, the manager may also invest in companies that are experiencing a special situation. Developments creating special situations may include new intellectual property developments, intellectual property licensing deals, mergers, spin-offs, litigation resolutions, new products or management changes.
The fund also seeks to generate income by selling options against the risk taken by owning common stocks.
The fund is non-diversified which means that it can invest a greater percentage of its assets in a small group of issuers or any one issuer than a diversified fund can.
