Fund Description

The fund generally invests in stocks of companies deemed attractive by Homestead Advisers using a bottom-up process grounded in fundamental research and factors such as a company's business, market opportunities, potential earning power, financial ratios, competitive advantages, and management experience and qualifications. Stock selection reflects the view that underlying business value is not always reflected in share price, especially over the short term, and seeks holdings that may benefit over time from a more reasonable market assessment of fundamental worth. Under normal circumstances, it invests at least 80% of net assets (plus borrowings) in common stocks of companies within the market-cap range of those in the Russell 2000 Index at purchase, but may retain positions that later fall outside that range. Up to 20% may be invested in short-term debt, money market securities, other investment companies, U.S. dollar-denominated securities of foreign issuers, and investment-grade convertible or exchangeable debt.