The fund seeks capital appreciation in the long term by investing in companies across any size in the United States.
The investment process is designed to identify companies with attractive valuations not yet recognized by investors with catalysts for earnings upside and higher price to earnings ratio.
The research team is driven by quantitative techniques to focus on companies with durable profitability, high returns on capital, superior free cash flow generation and generous cash return to shareholders.
Next, the team narrows the investable universe to a list of companies deriving a significant portion of their revenues from alcoholic beverages, defense/aerospace, gaming, and tobacco industries.
The fund will concentrate at least 25% of its net assets in this group of four industries (but no more than 80% of its net assets in any single industry).
In addition, the fund will invest in at least three countries (one of which may be the United States) and will invest at least 40% of its net assets in non-U.S. companies.
The fund strategically utilizes up to 20% of its net assets to invest in other socially controversial areas to increase industry diversification.
The fund seeks capital appreciation and capital preservation with lower volatility throughout market cycles 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.
Next, the research team invests in long and short equity stock index futures, primarily on the S&P 500 Index.
However, the team may also invest in stock index futures listed on other equity exchanges.
The team starts with a top-down analysis of companies.
Then the team focuses on a company’s market valuation, investor sentiment, market intervals, monetary environment, and macro Factors.
An assessment of these categories determines the amount of long or short equity allocation exposure in the fund through investment in stock index futures.
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.
