Investment approach The fund invests primarily in the common stock of small domestic companies possessing what the portfolio managers see as above-average growth potential based on in-depth fundamental analysis. The managers define small-cap as those companies with a market capitalization less than $6 billion at the time of purchase. The fund may invest up to 20% of its net assets in non-U.S. and emerging market securities, typically through sponsored American Depository Receipts (ADRs). Risk mitigation is sought through diversification across sectors, business models and economic sensitivity. Fund profile The fund invests in a concentrated portfolio primarily of companies the portfolio managers believe possess "3G" criteria: durable growth, sound governance, and scalable go-to-market strategies. In considering durable growth, the managers assess: Whether there is a large and growing market; Whether the company is a market leader and/or is gaining market share; and Whether a company has a differentiated product offering. To assess governance, the managers examine the strength of a company’s management, whether there is a shareholder-friendly board, and the alignment of management incentives with shareholder interests. Finally, the managers evaluate whether a company’s go-to-market strategies will result in incremental revenue, high and/or rising margins, and the efficient use of capital.