The fund seeks primarily capital appreciation in the long term and secondarily income from dividends by investing in mid-and large-cap 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.
The process also focuses on dividend-paying stocks to achieve its secondary objective.
The research team prefers well-capitalized, globally diversified companies that have the resources to weather adverse market conditions successfully.
Then the manager constructs a portfolio that holds the stocks of 40 to 60 companies. The diversified portfolio comprises of companies exhibiting both value and positive momentum characteristics.
Value characteristics include a historically low stock price, as well as historically inexpensive fundamental ratios such as earnings, sales, book value, and cash flow.
Positive momentum characteristics include positive earnings revisions, positive earnings surprises, relative price strength and developments such as a new product or management change.
The manager invests in sectors such as healthcare, technology, financial services, communications/entertainment, consumer, consolidating industries and defensive industries.
The fund has been designed to provide solid investment returns with lower risk through the ownership of undervalued stocks.
The fund engages in active trading of portfolio securities which causes a high portfolio turnover rate.
