The fund seeks to match the performance of a benchmark index before fees and expenses by investing in companies across any size 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.
The process does not attempt to fully replicate the index by owning each of the stocks in it.
Next, the research team relies on historical price movement, market capitalization, and transaction costs in selecting stocks for the fund.
Then the manager constructs a portfolio from a list of companies favored by the research team and allocates capital based on its conviction level.
The fund may also purchase stock index futures contracts and exchange-traded funds to reduce cash balances in the fund and increase the level of fund assets exposed to common stocks represented in the fund’s benchmark index.
In addition, the fund lends its portfolio securities to generate additional income.