The fund seeks capital appreciation in the long term by investing in large-size companies in the United States.
The investment process is designed to highlight high-quality companies exhibiting long-term earnings potential outlook. The process also assesses a company’s financial strength, earnings stability, and market leadership within its respective industry.
Next, the research team looks to exploit catalysts for multi-year earnings growth in companies that demonstrate sustainable competitive advantages.
The team in its top-down analysis seeks to identify current trends or themes which indicate specific industries that have the potential to experience multi-year growth. The various thematic catalysts include major macro-economic and political forces, cyclical inflections, changes in consumer behavior and technology shifts.
In the bottom-up analysis, the team focuses on companies estimated to grow faster than the market.
The team also considers whether a company has new products to introduce, has undergone cost restructuring or a management change, or has improved its execution.
Generally, the portfolio holds 40 to 50 stocks, including companies with products or services in foreign markets. The fund invests in securities that have the potential for capital appreciation, or that resist market decline.
Typically, the portfolio holds securities that display a history of improving sales and profits, management strength, ESG characteristics, established brand, dividend payment history, and prospects for capital return in the form of dividends and stock buybacks.
The fund has the flexibility to invest across any market capitalization, and also, invest in either growth or value stocks.