At the individual stock level, we search for events that suggest investor misbehavior.

Investors Make Mistakes.

We Look For Them.

There are two kinds of mistakes that produce buying opportunities: over-reaction and under-reaction.

 

Other investors may over-react to bad news and losses (e.g., panic). Or they may under-react to good news (e.g., not pay attention).

Over-reaction

...to historical, negative information

Under-reaction

...to new, positive information

U.S. small-cap blend mutual fund seeks long-term capital appreciation with similar risk levels and characteristics to its benchmark, the Russell 2000® Index.

  • Seeks to capitalize on behavioral biases that may cause the market to over-react to old, negative information or under-react to new, positive information.

  • Looks for companies with one or both of:

    • significant insider buying or stock repurchases (over-reaction)

    • large earnings surprises (under-reaction)

  • Invests in domestic stocks with market capitalization similar to those included in the Russell 2000® Index

U.S. small-cap growth mutual fund seeks long-term capital appreciation with similar risk levels and characteristics to its benchmark, the Russell 2000® Growth Index.

  • Seeks to capitalize on behavioral biases that may cause the market to under-react to new, positive information.

  • Looks for companies with:​

    • large earnings surprises (under-reaction)

  • Invests in domestic stocks with market capitalization similar to those included in the Russell 2000® Index

U.S. mid-cap value mutual fund seeks long-term capital appreciation with similar risk levels and characteristics to its benchmark, the Russell MidCap® Index.

  • Seeks to capitalize on behavioral biases that may cause the market to over-react to historical, negative information.

  • Looks for companies with:

    • significant insider buying or stock repurchases (over-reaction)

  • Invests in domestic stocks with market capitalization similar to those included in the Russell MidCap® Index

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Fuller & Thaler Behavioral Unconstrained Equity Fund
(FTZIX)*                       

U.S. all-cap mutual fund seeks long-term capital appreciation.

  • As an “unconstrained” fund, stock selection is driven primarily by long-term capital appreciation potential.

  • Seeks to capitalize on behavioral biases that may cause the market to over-react to old, negative information or under-react to new, positive information. 

  • Looks for companies with:

    • significant insider buying or stock repurchases (over-reaction)

    • large earnings surprises (under-reaction)​

  • Invests in domestic stocks with market capitalization similar to those included in the Russell 3000® Index 

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U.S. micro-cap mutual fund seeks to long-term capital appreciation with similar risk levels and characteristics to its benchmark Russell Microcap® Index.

  • Microcap stocks are generally less liquid, leading to higher volatility and more room for potential investor error

  •  Looks for companies with:

    • significant insider buying or stock repurchases (over-reaction)

    • large earnings surprises (under-reaction)​

  • Invests in domestic stocks with market capitalization similar to those included in the Russell Microcap® Index

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U.S. small-mid core mutual fund seeks long-term capital appreciation with similar risk levels and characteristics to its benchmark, the Russell 2500® Index.

  • Seeks to capitalize on behavioral biases that may cause the market to over-react to old, negative information or under-react to new, positive information. 

  •  Looks for companies with:

    • significant insider buying or stock repurchases (over-reaction)

    • large earnings surprises (under-reaction)​

  • Invests in domestic stocks with market capitalization similar to those included in the Russell 2500® Index

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