The fund seeks capital appreciation in the long term by investing in large-size companies in the United States.
The investment process uses fundamental research to highlight companies offering strong revenue, earnings and/or cash flow growth potential at attractive valuations.
Next, the research team looks for companies poised for market share gains in secular growth industries. The team also focuses on companies with sustainable competitive advantages, latent pricing power, expanding free cash flow and a high return on invested capital.
In addition, the team also looks for companies with strong and experienced management teams with clear business objectives.
The manager generally invests in companies that may be misunderstood or underappreciated by investors, and/or when business models change.
The fund seeks capital appreciation in the long term 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 long in equity securities that exhibit above-average growth prospects and sells short equity securities that are competitively disadvantaged over the long term.
The team focuses its research on the dominant secular, economic and demographic changes in society.
In addition, the team seeks to identify the industries and companies most affected, positively or negatively, by these changes.
On the long side, the team prefers companies with superior growth prospects, best in class management teams, excellent pricing power, large market opportunities and high returns on capital.
The team favors industries and companies with superior growth prospects for revenue, earnings and/or cash flow and seeks to buy stock in companies at attractive valuations.
In addition, on the short side, the team emphasizes companies that have low quality management teams, a track record of poor capital allocation, negative competitive and pricing advantage and may have contracting earnings for the foreseeable future.
In selecting securities for the portfolio, the research team focuses on companies that are trading at significant discounts to their estimated intrinsic value.
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 also invest outside the U.S.
However, the fund limits its investments in the securities of foreign issuers to no more than 15% of its net assets.
The fund seeks capital appreciation in the long term by investing in large-size companies in the United States.
The sub-advisor’s investment process is designed to highlight companies exhibiting above-average growth potential trading at attractive prices.
Next, the research team looks for companies that it believes are market leaders with irreplaceable products or services and sustainable competitive advantages.
In addition, the team narrows the investable universe to a list of companies exhibiting factors such as above-average returns on equity, returns on capital, cash flow returns on investment, earnings per share growth and revenue growth.
The team then uses qualitative analysis to focus on the sustainability of the company’s business model with particular emphasis on barriers to entry, competition and relative buyer/supplier leverage.
The fund also uses a valuation model to forecast future performance for sales, earnings and financial position to evaluate a company’s estimated intrinsic value.
