The fund seeks capital appreciation in the long term by investing in small- and mid-size companies in the United States.
The investment process starts with a list of companies in the benchmark index and the research team uses quantitative techniques and fundamental analysis to identify investment opportunities.
The team uses quantitative models to evaluate a stock’s returns on equity, capital expenditure, and projected growth rates characteristics. Moreover, the research team using fundamental analysis evaluates a company’s valuation multiples on the basis of earnings, cash flow, and book value.
Next, the team ranks the stocks on the basis of relative valuation, profitability, stability, earnings quality, management capital allocation actions, and appreciation potential.
The fund may select stocks with either growth or value characteristics, but the portfolio is generally constructed by buying higher-ranked stocks.