Fund Description

The fund invests at least 80% of net assets (plus any borrowings for investment purposes) in stocks of small-cap companies, defined at purchase by market capitalizations consistent with the Russell 2000 Index. Using a bottom-up approach, it seeks companies believed undervalued relative to long-term earnings growth potential and/or offering above-average growth prospects. The remaining 20% may be invested in micro-, mid- and/or large-cap stocks, U.S. government securities, and other investment companies including ETFs. It may invest up to 25% in foreign equities, including emerging markets, via direct holdings, U.S. dollar-denominated securities, and ADRs/EDRs/GDRs. It may short sell up to 10%, use money market instruments, and buy, sell, and write covered options, and invest up to 10% in securities futures and options. Holdings may be sold if overvalued or growth potential is reached; tax considerations may affect sales, and portfolio turnover could exceed 100%. The fund may have significant sector exposure and may close to new investors and later reopen.