• Investment process seeks to identify global investment opportunities in both long positions (stocks where the manager expects the price to go up) and short positions (stocks where the manager expects the price to go down).
• Targets a 130% long / 30% short portfolio so that when netted against each other, these holdings represent 100% long exposure to a diverse range of U.S. and non-U.S. companies.
• Utilizes fundamental investment research coupled with quantitative multi-factor models.

• Offers shareholders an alternative to long-only equity funds in which the manager can hold approximately 30% in short positions.
• Adds flexibility by allowing the manager to fully utilize all research available to construct a portfolio that expresses both positive and negative views on global equities, giving the manager a broader opportunity set with which to seek to improve returns.
• Portfolio still provides 100% market exposure but with potentially greater return potential.

• The Fund has an investible universe of approximately 7000 companies across various market capitalization segments globally.
• Bottom-up investment process applies fundamental research to identify companies with attributes of positive change, sustainability and timeliness.
• Proceeds raised via short sales will typically be invested in additional long positions in which the manager is seeking to outperform the Fund’s benchmark index.
• Uses two major techniques of stock selection for shorting stocks:
  • The first method employs the experience of the portfolio manager to identify stocks which are expected to underperform based on deteriorating fundamentals.
  • The second method utilizes “pair trades”. In a pair trade, the portfolio manager matches two companies with some common characteristic and takes the position that one (the long idea) will outperform the other (the short idea).

Pedro Marcal is a Senior Vice President and portfolio manager for NACM, joining the firm in 1994. During his tenure he has been instrumental in forming the firm’s global equity strategy, including a 7 year term as lead portfolio manager of Nicholas-Applegate Emerging Countries strategies. Prior to NACM Pedro spent 5 years as an economist at A.B. Laffer & Associates and a precious metals trader at A-Mark Precious Metals.

San Diego, California

Nicholas-Applegate believes that investing in companies undergoing positive change with sustainable characteristics and timely market recognition will result in outstanding investment performance. This investment approach is supported by a foundation of academic research in behavioral finance indicating that investors react inefficiently to changing information. This market inefficiency presents mispricing opportunities that the firm capitalizes on to earn excess return.