The fund seeks capital appreciation in the long term by investing in mid-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 a significant portion of the fund’s net assets in equity securities.
The team focuses on companies that are estimated to trade below their fair values, but have the potential for above average capital appreciation with below average risk.
In addition, the team prefers companies with favorable reward-to-risk ratios and a long-term competitive advantage.
Additionally, the team looks for companies that are lagging in market price, or are undergoing reorganization or other corporate action that may create above-average price appreciation.
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.