The fund seeks primarily capital preservation and secondarily capital appreciation in the long term by investing in companies across any size in the United States.
The investment process is designed to highlight undervalued companies in the benchmark index that are trading at a discount to their estimated intrinsic value.
The research process is driven by fundamental analysis of one stock at a time. The team seeks companies that are in an industry that allows the company to earn high returns on equity over time, imbued with a functional and resilient corporate culture, and estimated to trade below their fair values.
Additionally, the screening process generally involves rigorous analysis that entails developing an understanding of the ecosystem in which a company operates, and determining the value of the company.
Then the manager constructs a portfolio that typically holds from 16 to 24 securities plus a cash position.
The fund does not intend to focus on any particular sector or industry but at any given time may have a substantial investment in a particular sector or industry.
The fund is non-diversified which means that it may invest more of its net assets in the securities of a single issuer or a small number of issuers.
