Fund Description

The fund invests at least 80% of net assets (plus borrowings for investment purposes) in common stocks of U.S.-based mid-cap companies and provides 60 days' prior written notice before changing this policy. Mid-cap is defined by market-cap bounds tied to total U.S. market capitalization and the Russell MidCap Index. The fund seeks to achieve its investment objective by building a diversified portfolio of U.S. stocks in a disciplined process that applies the adviser's proprietary research on behavioral biases of other investors, that identifies and exploits investor mistakes, including over-reaction and under-reaction, that may create buying opportunities, then applies fundamental analysis; holdings may be sold when misbehavior reverses or fundamentals deteriorate. It may invest in REITs, BDCs, and ETFs, lend securities and invest cash collateral, and may exceed 25% in a sector when indicated but not more than 25% in any industry; it typically holds 25-75 positions up to 7%. It seeks to deliver similar risk characteristics to the Russell MidCap Value Index and, before trading, reviews the portfolio's characteristics relative to its benchmark and may adjust position sizes to control exposures.