The fund seeks primarily capital appreciation and secondarily current income in the long term by investing in mega-and large-size companies in the United States.
The investment process starts with a list of companies in the benchmark and utilizes internal research to identify companies that appear to be undervalued and may be temporarily out of favor but have good prospects for capital appreciation.
Then the research team evaluates companies on the basis of valuation multiples such as earnings, book value, sales and cash flow relative to its peers.
The team also considers factors such a company’s stock price relative to its underlying asset values, and companies that may benefit from restructuring activity and/or demonstrating balance sheet strength.
The fund may purchase a security if it believes there could be an increase in value as a result of an extraordinary corporate event, a new product introduction or innovation, a favorable competitive development, or a management change.
The fund may invest in a broad range of market capitalizations, but tends to focus on large capitalization companies.