The Fund

A Fund that invests into small-cap and micro-cap public companies

Discover Growth Fund is a mutual fund focused on making equity investments into small-cap and micro-cap public companies that have substantial growth potential. We seek out exceptional businesses with outstanding management.

The Fund

The Fund invests at least 80% of the value of its net assets, plus any borrowings for investment purposes, in equity securities of small-cap and micro-cap companies. The Fund’s investment team employs a fundamental, bottom-up equity investment style, which is characterized by intensive, first-hand research and disciplined company evaluation.

Strategy/Investment process

The objective of the Discover Growth Fund strategy is to outperform the Russell 2000 Index with less risk over a full market cycle. The portfolio is comprised of smaller capitalization companies that are higher quality, innovative and leveraged to more sustainable elements of economic growth. The portfolios are broadly diversified and possess portfolio characteristics superior to the small cap equity market.

What is quality and its importance

Discover Growth Fund measures quality by an absolute standard and a set of relative considerations with dynamic characteristics. Higher quality firms, those with more sustainable business models, consistent performance, robust cash flows,transparent financials, and effective management when compared to other similar companies, are most likely to produce durable benefits to our investors.

Diverse portfolio

Even portfolios invested in higher quality companies are subject to a variety of risks, including the potential for volatility, security specific events or research analyst bias. Reduced volatility has inherent performance benefits for clients. Portfolio diversification can help mitigate company, industry, sector, region, and other market-specific risks. It is also an effective method to ensure the balance between analyst conviction and portfolio manager humility – a dynamic tension we believe serves our investors well. We thus seek to employ prudent diversification in all of
our strategies.