The fund seeks primarily capital appreciation and secondarily current income by investing in large-size companies in the United States.
The advisor’s investment process is designed to highlight companies demonstrating growth potential.
The research team generally invests in common stocks, options, and futures contracts, but it has the ability to invest in preferred stocks and warrants.
In addition to options, the fund may include baskets of individual equities, futures, and options on futures contracts based on an index.
The advisor may allocate a portion of the fund’s net assets to cash or cash equivalents.
The fund seeks capital appreciation in the long term and income by investing in 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 employs a fund of funds strategy and invests in unaffiliated closed-end funds that pay regular periodic cash distributions.
Next, the research team invests in discounted closed-end funds that are trading at substantial discounts relative to the underlying net asset values.
In selecting closed-end funds for the portfolio, the team utilizes a proprietary research process that attempts to forecast whether the market discount on a closed-end fund will increase or decrease.
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 portfolio generally holds between 30 and 90 unaffiliated closed-end funds, along with cash, and cash equivalents.
In addition, the closed-end funds may invest in foreign securities and American Depository Receipts, and may invest in derivative instruments.
