The fund seeks primarily capital appreciation in the long term and secondarily income 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 utilizes quantitative techniques and fundamental analysis to identify investment opportunities.
Next, the research team invests in the equity securities of growing companies that are trading at reasonable prices.
The research process is driven by fundamental analysis of one stock at a time. In selecting securities for the portfolio, the research team focuses on high-quality companies that have the potential to grow steadily for long periods of time.
The team also reviews a company’s financial statements, builds proprietary financial models, visits company facilities, and meets with executive management, suppliers and customers.
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 may invest up to 20% of its net assets in securities issued by foreign companies in developed markets, emerging markets, or frontier markets.
In addition, the fund may invest a large percentage of its assets in a particular region or market, including Europe and the United Kingdom.
Additionally, the fund may invest a large percentage of its assets in a few sectors, including consumer discretionary, financials, health care, industrials, and information technology.