The fund seeks to maximize total after-tax return through capital appreciation, and income from dividends and interest by investing in companies across any size in the United States.
The investment process is designed to highlight companies in the benchmark index that are estimated to trade below their fair values.
Then the research team focuses on highly profitable companies that are selling at a substantial discount to their estimated intrinsic value.
Next, the team employs a bottom-up process to screen companies at least four times per year. The team seeks an understanding of the sector dynamics in which companies are operating, an assessment of the business cycle, and a review of macroeconomic conditions.
The team looks for companies with good returns that can be purchased cheaply, or companies with improving returns that have not yet been recognized by the market.
Additionally, the team also relies on data produced by various independent research organizations when selecting securities.
Then the manager constructs a portfolio from a list of companies favored by the research team and allocates capital based on its conviction level.
The fund may also invest in exchange-traded funds and in securities of foreign issuers, including American Depositary Receipts.
The fund may purchase investment grade fixed income or debt securities, of any maturity or duration, from time to time as substitutes for stocks when market conditions warrant their purchase.
The fund may invest up to 100% of its assets in cash, cash equivalents, and high-quality, short-term debt securities and money market instruments in response to adverse market, economic or political conditions.
