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 invests in companies having capable management teams, attractive business niches, pricing flexibility, and sound financial and accounting practices.
The team also prefers companies that exhibit consistent revenues, earnings, and cash flow growth potential.
In addition, the team looks for the presence of a near-term catalyst such as increased investor attention, asset sales, superior business prospects, or a change in management to cause the stock’s price to rise.
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 portfolio holdings will be widely diversified by industry and issuer, and stock selection may reflect either a growth or value investment approach.
Additionally, the fund may invest in foreign stocks.