Strategy. Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies located throughout the world. For purposes of this policy, equity securities include common stocks and derivative instruments with economic characteristics similar to equity securities. The Fund may also sell securities short. This investment policy may be changed by the Fund upon 60 days prior written notice to shareholders. The equity securities in which the Fund invests are primarily common stocks and the Fund is generally unconstrained by any particular country, region, sector or market capitalization. The Funds investments may occasionally include derivative instruments and short positions. The derivative instruments in which the Fund invests will typically … Show more… Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies located throughout the world. For purposes of this policy, equity securities include common stocks and derivative instruments with economic characteristics similar to equity securities. The Fund may also sell securities short. This investment policy may be changed by the Fund upon 60 days prior written notice to shareholders. The equity securities in which the Fund invests are primarily common stocks and the Fund is generally unconstrained by any particular country, region, sector or market capitalization. The Funds investments may occasionally include derivative instruments and short positions. The derivative instruments in which the Fund invests will typically be call options, put options and swaps. While the Fund is generally unconstrained within its equity universe, the Fund will typically invest in a portfolio of 20-30 issuers that the Adviser believes represent the best opportunities for long-term capital appreciation. Due to the highly focused nature of the Funds investment strategy, the Fund is considered to be non-diversified, and may invest a significant portion of its assets in a relatively small number of securities. The Fund will invest a portion of its assets in the securities of foreign companies. The Fund may consider a company to be a foreign company if: (i) 50% of the companys assets are located outside of the United States; or (ii) 50% of the companys revenues are generated outside of the United States; or (iii) the company is domiciled or doing a substantial amount of business outside of the United States. The Fund may invest in securities of companies in emerging market countries. An emerging market country is any country determined by the Adviser to have an emerging market economy, considering factors such as the countrys credit rating, its political and economic stability, and the development of its financial and capital markets. Typically, emerging markets are in countries that are in the process of industrializing, with lower gross national products than more developed countries. The Advisers allocation among various foreign countries does not seek to replicate any particular indexs country allocation by global capitalization or regional capitalization. There is no limit on investments in securities of foreign companies, including emerging markets companies. The Fund may purchase ADRs, rather than foreign shares that are traded on foreign exchanges, because the ADRs have greater liquidity or for other reasons. From time to time, the Fund may also focus its investments in a particular geographic region. In selecting investments for the Fund, the Adviser uses a fundamental, relative value investment approach to build a diversified portfolio of companies. Companies entering the portfolio generally need to satisfy Cambiars criteria on four levels: quality, valuation, value creation/catalyst, and risk-reward criteria: Quality Cambiars analysts seek companies that are best-of-breed operators within their industries. Eligible businesses for the portfolio are evaluated based on the following characteristics: ? Management Management teams should have a track record of success that has benefitted not just public shareholders such as the Fund, but a wide range of stakeholders, e.g. , employees, customers, suppliers. ? Consistent margins Companies with above average and consistent margins suggest a relatively high value-add product or service and defensible market position. ? Return on invested capital (ROIC) Demonstrates a pattern of value creation and capital discipline. ? Low leverage Companies with strong balance sheets do not need to depend on the vagaries of the debt and/or equity markets to sustain their businesses. ? Free cash flow (FCF) We view FCF to be a better measure of economic value creation versus alternative metrics such as EBITDA or EPS. Free cash flow is less subject to manipulation. Valuation Cambiar evaluates broadly accepted and recognized financial measures in gauging valuation. An underlying premise of the Cambiar philosophy is that certain industries tend to follow certain valuation ranges; the market does not randomly value stocks. Our preference is for issuers that appear reasonably valued based on a number of different metrics. Value Creation/Catalyst Cambiars research process also seeks to identify some form of fundamental positive development(s) that we believe the market is overlooking/underappreciating. Such catalysts may come in varying forms examples include new product introductions, managerial changes, divestiture of an underperforming division, or simply better financial performance. Valuation, in and of itself, is not a catalyst there must be some identifiable event that we believe will cause investors to positively reassess the business. Risk-reward criteria The final criteria is the investment teams assessment of the issuers upside potential: companies entering the portfolio should possess the potential for a 3:1 return-to-risk requirement over a forward 1- to 2-year timeframe. This return can generally be achieved via a combination of multiple expansion and dividend yield. While Cambiar may not achieve this return target over the desired timeframe or at all the return requirement is intended to channel research efforts toward those situations that appear to offer the most compelling risk/return tradeoffs. The Adviser constructs the Funds portfolio on a security-by-security basis, with the goal of building a portfolio that strikes a balance between the Advisers conviction in an investment and portfolio diversification. The Adviser seeks to manage the Funds risk through its research process as well as limits on individual position sizes and allocations to an economic sector or individual country. The Adviser will consider liquidating or reducing its investment in a company if: (a) the investment thesis is realized and the stock reaches its price target, (b) the stock price increases disproportionately relative to actual company developments, (c) position size, country or sector limits are reached, or (d) there is a negative change in fundamentals, or the investment thesis fails to develop as expected. The Adviser will not sell a stock simply because of a decline in price, and may add to the position if the investment thesis remains intact. To the extent the Fund invests in derivatives, those instruments will primarily be intended to hedge against the risk of unfavorable price movements in the underlying instruments, to increase long exposure to underlying instruments, to provide short exposure, to manage cash flows or currency exposure, or for other purposes. The Fund may buy and sell securities more frequently than other mutual funds, which could result in the Fund having a higher portfolio turnover rate than other mutual funds. Show less