The fund seeks high total return by investing in companies across any size 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 a mix of asset classes including, foreign and domestic equity securities, fixed income securities of any credit quality, and cash and cash equivalents.
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 may invest in individual securities or in exchange traded funds, and may invest in emerging markets.
The fund seeks high total return by investing in companies in the United States.
The investment strategy uses Trendratings innovative platform to identify stocks that have the highest momentum based on their proprietary scoring system.
The investment universe is composed of the top 500 US Stocks based on market capitalization. The research team ranks each stock using the TrendRating Smart Momentum Score (SMS).
The team considers 8 out of over 350 factors that TrendRating’s research has determined to be the most effective in capturing price trends ranging from a few months (medium term) to a few quarters (long term).
The SMS score measures the strength of a trend for a given stock. Each stock is given an SMS between -3 and +3, where a score of between 2 and 3 indicates a strong bull trend and a score between 1 and 2 indicates the beginning of a bull trend, whereas a score between -1 and -2 indicates the inception of a bear trend and a score between -2 and -3 indicates a strong bear trend.
Based on the score review, the fund may be focused in certain sectors and industries and the monthly review keeps the strongest trending stocks in the portfolio.
The fund’s initial portfolio includes the 25 highest ranked stocks. All valid positions remaining from previous months maintain their allocation percentage up to 8% for any single stock, and any new holdings are equally weighted among the percentage available from stocks being removed.
The fund intends to be fully invested in 25 common stocks chosen through TrendRating’s proprietary system. If there are not enough stocks with a positive SMS score, the fund may hold some of its assets in cash.
The fund seeks long-term capital appreciation by investing in small-cap companies in the United States.
The investment process starts with a list of companies included in the benchmark index or less than $1 billion in market capitalization.
Then the fund manager using quantitative analysis narrows the list of companies that meet hurdles on growth, earnings, and valuations. The team then evaluates individual companies and reviews business models, earnings track record and competitive dynamic.
The manager then also assesses company prospects by speaking with management, competitors, vendors, and industry analysts.
The fund prefers to invest in companies that are trading at significant discounts to their estimated long term value based on earnings power and earnings outlook.
