Strategy. Under normal conditions, the Advisor seeks to achieve the Funds investment objective by investing at least 80% of its net assets (plus borrowings for investment purposes) in equity securities of large market capitalization companies and instruments that provide exposure to such securities, including common, preferred and convertible stock and sponsored American Depositary Receipts (ADRs). Although the Fund will invest primarily in issuers located in the U.S., the Fund may also invest in foreign corporations. The Advisor considers large market capitalization companies to be those with market capitalizations in the range of the Standard & Poors 500 Index at the time of purchase. In addition, the Fund may invest a significant portion of the Funds total assets in cash or cash … Show more… Under normal conditions, the Advisor seeks to achieve the Funds investment objective by investing at least 80% of its net assets (plus borrowings for investment purposes) in equity securities of large market capitalization companies and instruments that provide exposure to such securities, including common, preferred and convertible stock and sponsored American Depositary Receipts (ADRs). Although the Fund will invest primarily in issuers located in the U.S., the Fund may also invest in foreign corporations. The Advisor considers large market capitalization companies to be those with market capitalizations in the range of the Standard & Poors 500 Index at the time of purchase. In addition, the Fund may invest a significant portion of the Funds total assets in cash or cash equivalents if the Advisors Process (as explained above) does not identify other appropriate investments for the Fund. The Advisor intends to invest primarily in securities that it deems to be undervalued and which exhibit the likelihood of exceeding market returns. The Fund will typically hold these securities until their market price reflects or exceeds their intrinsic value. The Advisor also expects to generate income by primarily investing in dividend-paying companies. In selecting dividend-paying companies, the Advisor does not seek a specific absolute yield; instead it compares the yield to a universe of dividend paying stocks along with its own history. In determination of a companys valuation and fundamental attractiveness, the Advisor generally applies a rigorous thought process that includes, but is not limited to the following criteria: Fundamental Analysis: ? Assess balance sheet risk: Cash generation cycle, debt payment schedule, coverage ratios ? Forecast earning power: Mid-cycle margins, normal return on capital, above/below trend ? Determine cash flow sources/uses: Discretionary cash flow, capital investment required, capital allocation priorities ? Identify dividend policy: Appraise dividend payout to earnings, dividend growth forecast, dividend cut forecast Competitive Analysis: ? Analyze business strategy: Market share changes, product development cycles and sustainability of advantages ? Evaluate management strengths: Track record, incentive compensation goals, internal compliance system In addition, the Advisor will at times seek to identify catalysts which may improve a companys valuation. These catalysts include but are not limited to: changes in management, improvements in a companys capitalization and forecasted changes of return on invested capital. In selecting investments for the Fund, the Advisor typically seeks to invest in companies for a period of three to five years. In consideration of a companys fundamental outlook the Advisor considers a companys earnings power, including its long-term ability to generate profit for reinvestment or distributions to shareholders. The Advisor considers other factors such as balance sheet and income statement strength, competitive position and overall industry prospects as well as managements alignment with shareholders interests. Stock selection is based on individual company merits and the Advisors assessment of each companys fair value. The Fund may sell a security when it reaches its target valuation or when the Advisor expects or observes a long-term deterioration of a companys fundamentals. The Advisor may also sell a security when it identifies more compelling investment ideas or a particular security exceeds 5% of portfolios total assets. The Fund is a diversified fund and seeks to construct a portfolio ranging from 40 to 60 securities. Show less