The fund seeks capital appreciation in the long term by investing in small-size companies in the United States.
The sub-adviser’s 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 stocks of companies that exhibit value characteristics.
The team seeks to capitalize on behavioral biases that may cause the market to over-react to old, negative information or underreact to new, positive information on a company.
In selecting securities for the portfolio, the research team looks for companies with significant insider buying or stock repurchases, evidence of overreaction that has caused devaluation, and attractive fundamentals.
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 fund also invests in real estate investment trusts.