The fund seeks capital appreciation in the long term by investing in companies across any size outside 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 a significant portion of its net assets in foreign securities, including companies located in developing market countries.
The team relies on fundamental analysis to focus on the market price of a company’s securities relative to its long-term earnings, asset value and cash flow potential.
Also, the team considers a company’s valuation multiple such as earnings, profit margins and liquidation value.
The research process is driven by fundamental analysis of one stock at a time. In selecting securities for the portfolio, the research team focuses on companies that demonstrate above-average prospects for capital appreciation in various countries and industries where economic and political factors, including currency movements, are favorable to capital growth.
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.
However, from time to time, based on economic conditions, the fund may have significant positions in one or more countries or in particular sectors, such as the financial services sector.