Strategy. The Fund seeks to achieve its investment objective by investing under normal circumstances in long and short positions of equity securities. The Adviser invests a portion of the assets in securities included in the S&P 500 Index (the Index) but not necessarily in the same weightings within the Index (the Long Portfolio). The Fund also has additional exposure to a long/short portfolio (the Long/Short Portfolio), consisting of long and short positions in securities listed in the Index, but may invest in other large capitalization companies, generally selected from the largest 500 700 U.S. companies based on market capitalization. The Fund is not a passive index fund, but instead utilizes an enhanced index or index plus strategy. The Long Portfolio generally … Show more… The Fund seeks to achieve its investment objective by investing under normal circumstances in long and short positions of equity securities. The Adviser invests a portion of the assets in securities included in the S&P 500 Index (the Index) but not necessarily in the same weightings within the Index (the Long Portfolio). The Fund also has additional exposure to a long/short portfolio (the Long/Short Portfolio), consisting of long and short positions in securities listed in the Index, but may invest in other large capitalization companies, generally selected from the largest 500 700 U.S. companies based on market capitalization. The Fund is not a passive index fund, but instead utilizes an enhanced index or index plus strategy. The Long Portfolio generally consists of long positions in the securities that comprise the Index that are weighted based on the Advisers assessment of value and the individual securitys Index weight. The Long/Short Portfolio consists of long positions in securities that the Adviser believes to be undervalued and short positions in securities that the Adviser believes to be overvalued, based on the Advisers analysis of the issuers financial reports and market valuation. The Adviser seeks to maintain the Funds net exposure, which is the value of the Funds long positions minus its short positions, in the range of approximately 70 100% during normal market conditions. The Adviser expects that the Funds gross exposure, which is the value of the Funds long positions plus its short positions, will be in the range of 160%220% under normal circumstances. In determining which individual securities to purchase or short for the Long/Short Portfolio, the Adviser employs a systematic, bottom-up, valuation approach based on the Advisers proprietary analytical framework to identify companies that appear to be undervalued or overvalued on both an absolute and relative basis. This approach consists of: ? Researching and analyzing each company in the Advisers coverage universe according to a methodology that emphasizes fundamentals such as recurring earnings, cash flows, capital efficiency, capital structure, and valuation; ? Identifying and excluding companies that do not conform to the Advisers valuation methodology or companies judged by the Adviser to have questionable financial reporting; ? Updating the analysis for earning releases, annual (Form 10-K) and quarterly (Form 10-Q) reports and other corporate filings; and ? Recording analysis in a centralized database enabling the Adviser to compare companies and identify longs and shorts based on the Advisers assessment of value. Generally, the long portion of the Long/Short Portfolio is weighted towards those stocks that are priced at the largest discount to the Advisers assessment of value. Similarly, the short portion of the Long/Short Portfolio is generally weighted towards those short positions selling at the largest premium to the Advisers measures of value. The Long/Short Portfolio is also subject to the Advisers risk controls, which include liquidity and diversification considerations. The Fund is rebalanced (generally daily) to maintain exposure levels, manage risk and reposition the portfolio to reflect earnings releases and other new information related to particular companies. The Fund may also lend portfolio securities to brokers, dealers and other financial organizations meeting capital and other credit requirements or other criteria established by the Funds Board of Trustees. Loans of portfolio securities will be collateralized by liquid securities and cash. The Fund may invest cash collateral received in securities consistent with its principal investment strategy. The Funds investment of the proceeds of short sales creates leverage in the Fund which may amplify changes in the Funds net asset value. Because the Fund generally rebalances its long and short positions within the Long/Short Portfolio daily, the Fund will experience a high portfolio turnover rate. Show less