Fund Description

The fund invests mainly in small- to medium-capitalization companies (generally under $7 billion in market value at initial purchase) listed or traded on a national securities exchange or association. Under normal market conditions, it invests 80% of net assets in common stocks, including common stocks of foreign companies primarily via ADRs or ADSs, which are dollar-denominated U.S.-traded securities; it may use both sponsored and unsponsored ADRs. The fund uses fundamental analysis to seek good businesses at value prices, emphasizing factors such as defendable niches, recurring revenue, modest pricing, attractive return on investment versus cost of capital, and growth or improving profitability, and sells holdings based on value realization, diversification needs, deteriorating fundamentals, or better value opportunities.