As a "bottom-up" manager, RCM evaluates each investment idea by assessing the company's prospects for growth, quality and valuation. RCM has two separate research platforms: Fundamental and GrassrootsSM Research. The investment team's extensive experience and proprietary investment tools allow information to be processed quickly. After the quantitative and qualitative information has been gathered, the Team constructs portfolios that are typically 80% bottom-up and 20% top-down. The top-down process leverages the expertise of our internal economics and investment staff, developing a perspective regarding relative sector performance. The Team selects the individual names that meet the firm's investment discipline and may add to the overall portfolio risk-adjusted return. The goal is to create a portfolio with growth characteristics above the benchmark.
Use of Derivatives
The Fund expects to engage in derivative transactions, which may have the effect of either magnifying or limiting the Fund's gains and losses. The Fund ordinarily expects to use derivative instruments in an attempt to enhance the Fund's investment returns, to hedge against market and other risks in the portfolio and/or to obtain market exposure with reduced transactions costs.
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