AMG River Road Small Cap Value Fund Class N (ARSVX)

Overview

The fund primarily focuses on investing in equity securities of small-cap companies, which are perceived as undervalued by the subadviser. This investment approach is rooted in value investing principles, targeting stocks that are currently out of favor or undervalued in relation to their industry peers or growth potential. Despite its core concentration on small-cap equities, the fund maintains the flexibility to allocate investments into mid-cap companies, aligning with market capitalizations within the scope of the Russell Midcap® Index. This strategy aims at capitalizing on the potential for significant growth and value appreciation over time.

Products and Services

• Equity Securities of Small-cap Companies

  Investing primarily in this category, the fund seeks out small-cap companies that are undervalued according to the subadviser's analysis. The focus is on those stocks deemed to be trading below their market potential due to various factors, such as temporary market disfavor or misconceptions about their growth prospects. This strategy leverages the potential for significant returns by targeting companies poised for valuation corrections.

• Value Investing Approach

  The foundation of the fund's strategy is value investing, which involves identifying and purchasing stocks that are priced below their intrinsic value. This methodology relies on thorough market research and analysis to find companies that are out of favor with investors but have strong potential for future appreciation. By focusing on undervalued stocks, the fund aims to provide a buffer against market volatility and generate sustainable long-term gains.

• Investments in Mid-cap Companies

  While the fund's primary focus is on small-cap companies, it also explores investment opportunities in mid-cap companies. These are entities with market capitalizations that fall within the range defined by the Russell Midcap® Index at the time of acquisition. The inclusion of mid-cap companies allows for a more diversified portfolio and the ability to capitalize on the growth potential of companies that are slightly larger but still offer value investing opportunities.