Investment ObjectiveTo increase the value of its shares, over the long term, through growth in the value of its investments. The fund invests mainly in a diversified portfolio of stocks from large capitalization companies in the United States that are selling at discounted valuations relative to their historical average and/or the average of their industries.
- Focus on relative value relationships to opportunistically identify attractively valued companies.
- Fundamental research is key to uncovering companies with potential for stock price mean reversion.
- Integrate qualitative inputs to assess potential for improved investor perception.
- Verify relative valuation anomalies through quantitative analysis.
- Balance valuation analysis and qualitative overlay.
- Environmental, social and governance ("ESG") factors with particular focus on those considered most likely to have a material impact on the performance of the holdings or potential holdings in the funds’ portfolio are assessed. These ESG factors, which are incorporated into the investment process alongside financials, valuation, macro-economics and other factors, are components of the investment decision. Consequently, ESG factors are not the sole driver of an investment decision but are instead one of several important inputs considered during investment analysis.
- Typically 70-80 stock portfolio
- Individual positions typically are below 3%, but higher conviction ideas can range to 5%
- Sector weights will typically vary from 0.5X to 2.0X of primary value sectors of the Russell 1000 Value Index
- Reserves will range from 0% to 2%