Fund Description

The fund invests primarily in a diversified portfolio of common stocks of companies with market capitalizations above $10 billion at purchase. Using a fundamental, relative value approach, the adviser selects companies that the adviser's analysts view as best-of-breed operators within their industries based on quality, valuation, value creation/catalysts, and risk-reward. Quality factors include management track record, consistent margins, ROIC, low leverage, and free cash flow. Valuation uses metrics such as P/E, price/book, and free cash flow yield versus historical ranges. Risk is managed via research and limits on position sizes and sector allocations, and will consider liquidating or reducing an investment if the investment thesis is realized and the stock reaches its price target, if the stock price increases disproportionately relative to actual company developments, if position size, country, or sector limits are reached, or if there is a negative change in fundamentals or the investment thesis fails to develop as expected.