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.
The research process is driven by fundamental analysis of one stock at a time. In selecting securities for the portfolio, the research team employs a quantitative management strategy relying on quantitative models.
Next, the stocks are ranked on the basis of valuation, profitability, stability, earnings quality, management capital allocation actions, and indicators of near term appreciation potential.
As part of the stock selection process, the team focuses on companies that have the potential to achieve above-average, long-term earnings growth.
In addition, the team also reviews a company’s historical and forecasted sales and earnings growth rates.
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 holds higher-ranked stocks based on the quantitative models.