Bestinvest says
Essentially the process of the fund is based on behavioural finance and utilises momentum and value screens to flag ideas. Whilst there is nothing generally wrong with this approach, often it is susceptible to market turning points, especially when company fundamentals become less important compared to global events. Therefore because of this and given the fact that the fund has higher levels of volatility than the average US fund it is not on our buy list and remains unrated.
The manager believes that the most reliable source of inefficiencies are those that arise from investor psychology. This leads to discrepancies in stock prices relative to their underlying fundamentals. Therefore the key part of the process is applying analytical quantitative screens that search for companies with strong fundamentals, but which are under appreciated by the market. This includes screening for companies with positive broker earnings revisions as well as screening for companies which are cheap relative to their enterprise value. So the idea is to find catalysts which are yet to be properly recognised by the market. Additionally the manager doesn't like to follow market fashion and tries to avoid misleading data and market noise.