Fund Description

The fund invests in a diversified portfolio of undervalued common stocks of small-capitalization companies, defined as issuers with market capitalizations below $7 billion at initial purchase. Under normal circumstances, at least 80% of assets are invested in small-cap common stocks, and up to 15% may be invested in sponsored American Depositary Receipts issued by foreign companies. The advisor uses a contrarian approach focused on out-of-favor securities, using valuation screens such as price-to-book, price-to-cash flow, price-to-revenue, and price-to-earnings, and sets price targets before purchase that are reviewed quarterly or as needed. Holdings are sold when targets are reached, reduced if exceeding 5% of the portfolio, or sold if the investment rationale no longer applies.