The fund seeks to build investor wealth over extended periods and to minimize shareholder capital gains tax liability by limiting the realization of long- and short-term gains by investing in large-size companies in the United States.
The investment process relies on a value-oriented approach to identify companies trading at a discount to their estimated intrinsic value relative to earnings, cash-flow or asset values.
The research team employs fundamental analysis to focus on companies displaying characteristics such as free cash flow generation, sustainable competitive advantage, high returns on capital, and capital allocation discipline.
In addition, the team looks for companies that have demonstrated records of profitability, conservative financial structures, and shareholder-oriented management.
The diversified portfolio usually holds between 25 and 40 stocks. The fund will not invest in excess of 25% of its assets in any one industry and generally does not invest greater than 25% of its assets in any specific group of industries.
