The portfolio manager seeks long-term capital appreciation by investing principally in the equity securities of companies with capitalizations of $500 million to $2.5 billion.
The team seeks to buy growing, high-quality companies at a discount to what the managers perceive are their fair-market values.
- Superior cash-flow generation
- Management with successful record of business-strategy execution
- Defensive business models
- Sustainable growth
- Solid balance sheet
- Pay reasonable prices
- Disciplined sell policy
- Diversified portfolio
- Sector-weight policies
Investments in small-cap companies generally involve greater risks than investing in larger capitalization companies. Small-cap companies often have narrower commercial markets and more limited managerial and financial resources than larger, more established companies. As a result, their performance can be more volatile and they face greater risk of business failure, which could increase the volatility of a fundís portfolio. Additionally, small-cap companies may have less market liquidity than larger companies.