The fund seeks capital appreciation by investing in small-size U.S. companies.
The investment process starts with a list of companies included in the benchmark index and then the research team narrows the list to those that meet hurdles on revenue and earnings growth and acceleration.
Next, the team with the help of fundamental research identifies high quality companies with financial strength, strong competitive positions, expanding profit margins, and durable earnings and cash flow growths.
The investment team favors companies that are expected to accelerate earnings and expand margins in the near term which may lead the fund to emphasize companies in technology, communications, healthcare and business services.