Investment approach The fund uses a research-driven approach to invest primarily in U.S. equity securities of small-cap companies that the portfolio manager believes are mispriced relative to a fundamental assessment of their underlying value. The manager defines small-cap as having a market capitalization of less than $6 billion at time of purchase. The fund may invest up to 15% of its net assets in non-U.S. and emerging market securities, typically through sponsored American Depository Receipts (ADRs). Fund profile The fund is a concentrated portfolio of primarily domestic equities that the manager believes have a market price that does not necessarily equate to company value, and thus the manager seeks to capitalize on market inefficiencies that arise in the small-cap universe. The manager incorporates fundamental analysis and valuation discipline into selecting undervalued investments for the portfolio that focuses on out-of-favor or under-followed, cash-generating companies with sustainable business models, strong finances, competent management, and a demonstrable record of profitability and self-funded growth. The fund may also invest in cyclical companies or companies experiencing a temporary setback when the current company valuation represents an attractive discount to the company’s long-term earnings potential.