The Multi-Cap Opportunities portfolio uses a rigorous bottom-up research approach to identify intrinsically undervalued companies with strong and/or improving franchise quality. The universe of stocks includes companies whose capitalizations typically range from $1 billion and above. The strategy is typically benchmarked to the Russell 3000 Value Index. Concentration guidelines and risk controls generally will include: position weightings no greater than 5% at cost, industry weights less than 25% and sector weights less than 30%. American Depositary Receipts (excluding Canada and all islands of the Caribbean, including the Bahamas and Bermuda) are limited to 20%.
Our equity research team performs extensive bottom-up research on companies and industries focusing on qualitative factors such as restructuring, management strength, shareholder orientation and the ability to capitalize on improving industry fundamentals. In addition, a broad range of fundamental valuation metrics are utilized—price-to-cash flow, price-to-book, price-to-earnings and liquidation/replacement value. The portfolios are generally diversified across 40 to 70 companies representing strong risk/return characteristics.