The fund seeks capital appreciation in the long term by investing in mid-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.
Next, the research team invests in equity securities.
In selecting securities for the portfolio, the research team focuses on companies that are lagging in market price for temporary reasons and are trading at a discount to their estimated intrinsic value.
The team also considers a company’s valuation multiples on the basis of book value, earnings, sales, and cash flow.
In addition, the team focuses on a company’s market capitalization, as well as dividend yield.
The team looks for companies with near-term catalysts, such as new products, technologies, or management, which may trigger an increase in their values.
Also, the research team integrates environmental, social and governance factors as part of its process.
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.