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 companies that are underpriced and demonstrating attractive growth prospects.
As part of its analysis, the team relies on a company’s private market valuation.
In addition, the team evaluates a company’s cash flows, asset valuations, and competitive factors.
The team also assesses the company’s management strength, financial health, and growth potential in determining a company’s private market valuation.
Also, the team meets company management, and even focuses on the long-term strategic direction of the company.
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.