The fund seeks capital appreciation in the long term by investing in small-size 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 focuses on companies that are estimated to trade below their fair values with sustainable competitive advantage.
The team seeks to purchase publicly traded companies at significant discounts to their 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 invest up to 30% of its net assets in publicly traded foreign securities which may consist in whole or in part of securities of issuers in emerging markets.
Also, the fund may hold up to 10% of its net assets in illiquid securities.
Additionally, the fund has the flexibility to invest its net assets temporarily in obligations of the U.S. government and its agencies, or in other money market instruments.
