Fund Description

The fund typically is fully invested in common stocks favored by its investment adviser, with modest cash balances and proceeds from options written to hedge equity investments. It seeks to vary sensitivity to general market fluctuations by using options, index futures, and other hedging strategies, increasing exposure when conditions are viewed as favorable and reducing or hedging exposure when viewed as unfavorable. Stock selection emphasizes valuation and market action, including analysis of price versus present value of expected future cash flows, dividend yield, price/earnings and price/revenue, financial stability, and price and volume behavior. It may opportunistically trade around short-term market moves, potentially increasing turnover. Equity exposure via stocks and option notional value is not expected to exceed 150% of net assets, and hedging may cover up to 100% of stock value; performance may differ significantly from major stock indices across market cycles.