Strategy. Under normal conditions, the Fund invests primarily in a diversified portfolio of undervalued small and medium capitalization ( i.e. , less than $25 billion of market capitalization) equity securities and high yield securities (also known as junk bonds). The Fund believes an equity security is undervalued if the market value of the outstanding equity security is less than the intrinsic value of the company issuing the equity security. Equity securities include common stocks, preferred stocks, convertible preferred stocks, warrants, options, exchange-traded funds (ETFs) and foreign securities, which include American Depository Receipts (ADRs). The Fund considers the intrinsic value of a company to be the present value of a companys expected future stream of free cash flows discounted by an appropriate … Show more… Under normal conditions, the Fund invests primarily in a diversified portfolio of undervalued small and medium capitalization ( i.e. , less than $25 billion of market capitalization) equity securities and high yield securities (also known as junk bonds). The Fund believes an equity security is undervalued if the market value of the outstanding equity security is less than the intrinsic value of the company issuing the equity security. Equity securities include common stocks, preferred stocks, convertible preferred stocks, warrants, options, exchange-traded funds (ETFs) and foreign securities, which include American Depository Receipts (ADRs). The Fund considers the intrinsic value of a company to be the present value of a companys expected future stream of free cash flows discounted by an appropriate discount rate. After estimating the intrinsic value of a company, the Fund adjusts for debt, cash, and other potential capital (such as minority interest) on the companys balance sheet. The Fund then makes buy/sell decisions by comparing a companys market value with its intrinsic value estimates. The Fund seeks to invest in internally financed companies generating cash in excess of their business needs, with predictable revenue streams, and in industries with high barriers to entry. The Funds investments in high yield securities will not be limited in duration, but typically will be in securities having a duration of two to six years at the time of purchase. Duration is a measure of a debt securitys price sensitivity, taking into account a debt securitys cash flows over time. For example, a security with a duration of five years would likely drop five percent in value if interest rates rose one percentage point. Additionally, the Funds investments in high yield securities will not be limited in credit rating, but typically will be in securities rated below-investment grade by a nationally recognized statistical rating agency. The Fund believes that these securities may be attractively priced relative to their risk because many institutional investors do not purchase less than investment grade debt securities. In certain market conditions, the Adviser may determine that it is appropriate for the Fund to hold a significant cash position for an extended period of time. The Fund expects that it may maintain substantial cash positions when the Adviser determines that such cash holdings, given the risks the Adviser believes to be present in the market, are more beneficial to shareholders than investment in additional securities. Show less