Fund Description

The fund invests at least 80% of net assets (plus borrowings for investment purposes) in common stocks of U.S.-based small-cap companies and provides 60 days' prior written notice before changing this policy. U.S.-based means publicly traded in the U.S. and meeting criteria such as U.S. incorporation, headquarters, primarily U.S. assets, or majority U.S. revenue. Small-cap companies are generally those whose market capitalizations are in the lowest 10% of total market capitalization or are smaller than or equal to the largest company in the Russell 2000 Index, whichever results in the higher market capitalization break. It uses proprietary behavioral finance research to identify over- and under-reaction, then applies fundamental analysis; it generally sells when misbehavior reverses or fundamentals deteriorate. It may invest in Russell 2000 REITs, lend securities, may concentrate over 25% in a sector, and limits any industry to 25%. It typically holds 70-140 positions.