|
Investment Philosophy
The Senbet Fund seeks long-term growth
of capital by investing primarily in
common stocks providing the opportunity
for growth at a reasonable price. The
Fund may also invest in other securities
as outlined below. The Fund uses the
"Top Down" approach when evaluating a
company's securities and, by conducting
economic, industry and company analyses,
the Fund identifies individual companies
with earnings and/or earnings potential
that may not be recognized by the market
at large.
The Fund is reweighted on a regular
basis to reflect changing economic
conditions and is benchmarked against
sector indices on a risk-adjusted basis.
The following is a description of the
types of securities in which the Senbet
Fund invests.
- U.S. Equity Securities may include common stocks, preferred
stocks, convertible securities,
warrants, and unit trusts. Our goal
is to be 75%-100% invested in common
stock.
Restrictions:
No one stock
will make up more than 10% of the
Fund; no company in which we invest
shall have a market capitalization
less than $100 million; and at least
three Wall Street analysts must
cover the stock.
- U.S. Debt Securities may
include government, agency, and
investment-grade corporate bonds.
The Fund will use debt securities to
hedge against stock market risk and
as economic and market conditions
warrant.
Restrictions: Maturities will
be chosen in accordance with the
goals of the Fund; the Fund shall
invest in investment-grade debt; and
the structure of the debt may be
straight, callable, or puttable.
- Foreign Securities may
include both equity and debt
investments. Investments in foreign
securities may be made through ADRs,
mutual funds, or foreign securities
trading on U.S. exchanges.
Restrictions: The same
restrictions concerning the
weighting and quality of U.S.
securities will apply to foreign
securities.
- Derivatives such as
options and futures serve as
excellent vehicles for hedging risk
in the Fund. However, because of
their inherent volatility and risk,
extreme caution will be used before
they are integrated into the
portfolio.
Restrictions:
Derivatives may
be purchased for hedging purposes
only and will never comprise more
than 5% of the portfolio; no naked
derivative positions will be
established.
- Margin will not be used
at any time.
|
