The fund seeks to appreciate capital with low correlation to the U.S. stock market through long and short positions.
The investment process starts with companies in the benchmark Russell 1000 Index and takes long positions in companies that are expected to increase in value and short companies that are estimated to fall.
The long portion of the fund’s selection process is driven by identifying companies with established market presence, solid financial statements, and stable or improving earnings growth. The selected narrow list of companies are estimated to generate above-average earnings growth.
The short portion of the fund’s selection process is driven by identifying companies with market valuation that are ahead of company fundamentals and the stocks are likely to fall in the near future.
The fund uses long positions to generate capital gains and short positions to earn income and limit downside.