Essex Small/Micro Cap Growth Fund

Essex seeks to identify companies with accelerating earnings and revenue growth before the market is able to reflect this change in stock prices.

• Focuses on the small cap universe
  • Screens companies with a $50 million to $1.5 billion market capitalization for improving earnings
  • Identifies industries that may be experiencing faster growth than in the past
• Searches for companies that are exhibiting early signs of improving business conditions
  • Over 500 companies analyzed each year
  • Uses pure fundamental research focused on companies and catalysts for positive change
  • Assesses sustainability of change, develops internal earnings estimates, determines whether anticipated growth is reflected in current price of the stock
• Builds a portfolio of best ideas

Investment Process

Ideal Investment

• Corporate restructuring
• Industry consolidation
• Improving industry
• Market share gains
• New products

Portfolio Construction

• Build a portfolio of best ideas
  • Companies in different phases of growth
  • Companies demonstrating diverse growth and valuation characteristics
• Makes final investment decisions
  • Continued discussion with analysts
  • Bi-monthly channel checks w/ company management
• Reviews current weightings and holdings in respective sectors
  • Initial weighting 1-2%
  • Portfolio with 70-100 stocks
• Diversifies across market sectors; driven by stock selection
• Examines market capitalization and liquidity of the stock

Sell Discipline

• Catalysts for improved growth and/or valuation has played out
• Price target reached
• Deterioration of company specific fundamentals
• Better opportunities within current sector or another sector
• Loss of confidence in company management

Investors should carefully consider the fund's investment objectives, risks, charges, and expenses before investing. For this and other information, please call 800.835.3879 or download a free prospectus. Read it carefully before investing or sending money.

The performance shown represents past performance and is not a guarantee of future results. Current performance may be lower or higher than the performance data quoted. The investment return and the principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. From time to time the advisor has waived fees or reimbursed expenses, which may have resulted in higher returns. The listed returns and yields on the Fund are net of expenses and the returns and yields on the indices exclude expenses. Current performance of the Fund may be lower or higher than the performance quoted.

There is no guarantee that these investment strategies will work under all market conditions, and each investor should evaluate their ability to invest for a long-term, especially during periods of downturns in the market.

The investment return and the principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.