The fund’s investment objective is to achieve capital appreciation through investment in US smaller companies. The fund will invest in the securities of smaller companies listed on the principal stock exchanges in North America, including Canada, together with those that are traded on the over-the-counter market. Investment will be in directly held transferable securities. The fund may also invest in collective investment schemes, warrants and money market instruments.
The fund's investment process is a bottom-up, fundamental, research-based approach. We seek to identify those companies that have compelling business models, a strong management team and attractive valuation levels. Within the fund we combine three distinctly different types of stocks: (1) those that we call 'mis-priced' growth opportunities, which are companies that demonstrate strong growth trends and improving levels of cash;(2) 'steady eddies', which generate dependable earnings and revenues; and (3) turnarounds, which are companies that are undergoing positive change that is not being recognised by the market. By doing so, we believe we can reduce overall risk and improve returns for our investors.