Fund Description

The fund invests in common stocks of large U.S. companies it believes are undervalued and have appreciation potential. It generally buys stocks only when the price is significantly below the manager's estimate of intrinsic value, based on its own fundamental analysis, with a focus on companies trading at low prices relative to earnings. It also considers book-to-market value, price-to-cash flow, price-to-sales, 12-month earnings estimates, and five-year return on equity. Under normal conditions, it invests at least 65% of net assets in companies with market caps above $5.0 billion, may weight sectors versus the S&P 500, and may use stock index options. The manager may vary market exposure and take defensive positions. During defensive periods, it may invest some or all of its assets in stock index options, money market funds, or U.S. Treasury or U.S. Agency fixed income instruments with a maturity of less than five years.