The fund seeks primarily capital appreciation in the long term and secondarily capital preservation 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 positions.
The team buys long positions to benefit from rising valuations, and purchases short positions to take advantage of declining valuations or as a hedge against long positions.
In selecting long positions for the portfolio, the research team generates a focus universe of approximately 300 companies traded in the U.S.
The team then ranks the companies based on an evaluation of company-specific metrics that may affect annual earnings.
The team buys stocks that exhibit improving key factors that are available at reasonable valuations.
In addition, the team will generally establish short positions in common stocks of mid- and large-capitalization companies.
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.
