The fund seeks capital appreciation in the long term by investing in mega-and large-size companies in the United States.
The 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 dividend paying equity securities of companies, as well as other investment companies (mutual funds, closed-end funds and ETFs), and cash and cash equivalents and put options.
The team focuses on companies that are paying the highest dividend yields in each of the 10 major S&P 500 industry sectors.
In addition, the team employs trend analysis to allocate investments between stocks and cash to mitigate risk.
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 seeks capital appreciation in the long term by investing in companies across any size in the United States.
The investment process is designed to identify the various trends in the equity market.
To this end, the fund utilizes the HCM-BuyLine, its proprietary quantitative investment model to determine when it should be invested or not be invested in the market.
The HCM-BuyLine uses trend analysis to help identify the broad trend in the equity market. Depending on the current trend, the research team increases or reduces the fund’s exposure to equities.
Also, a number of indicators comprise the HCM-BuyLine, with the ratio of new highs to new lows over different time horizons having the heaviest weight.
Then the manager constructs a diversified portfolio from a list of companies in the benchmark index favored by the research team and allocates capital based on the strength of the trend identified by the HCM-BuyLine.
The fund will either be fully invested in equity securities, or will invest in cash and cash equivalents and/or put options depending on the strength of the trend.
When the fund is in the market, the portfolio will be comprised of equities of companies whose earnings are growing, while the remaining portion of the portfolio will be invested in investment companies.
