Perkins Discovery Fund (PDFDX)

Overview

The company presents an investment approach focused on equity securities of domestic companies with a market capitalization below $1 billion at the time of purchase. This investment philosophy underscores a commitment to capturing the growth potential of smaller, potentially undervalued companies within the United States. By stipulating that at least 80% of its net assets, along with any borrowings for investment purposes, will be dedicated to such equities, the fund showcases a targeted strategy aimed at value generation through small-cap investments. This direction reflects an understanding of the unique opportunities within this market segment, prioritizing companies poised for growth that have not yet reached larger capitalization statuses.

Products and Services

The fund's products and services are primarily centered around investment in the equity securities of small-cap companies. Detailed explanations of the specific types of securities it may engage with are provided below:

• Common Stock: The fund focuses on the purchase of common stocks within the small-cap domain. Common stock represents a share of ownership in a company and entitles the holder to vote at shareholder meetings and receive dividends. By investing in common stocks, the fund aims to capitalize on the growth potential of its selected companies, benefiting from both dividend payments and appreciation in stock value.
• Preferred Stock: In addition to common stocks, there is a provision for the purchase of preferred stocks. Preferred stock is a type of equity that typically offers no voting rights but has a higher claim on assets and earnings than the common shares. For investors, preferred stocks are attractive due to their potential for fixed dividends, which can provide a steady income source. The fund's inclusion of preferred stock signifies a strategy that balances growth with income, diversifying its investment approach.
• Convertible Stocks: Lastly, the fund may invest in convertible stocks, blending features of both debt and equity. Convertible stocks can be converted into a predetermined number of common shares, usually at the discretion of the holder. This type of investment combines the potential for appreciation in the company's share price with the protection against loss provided by the fixed income characteristic of bonds. Including convertible stocks allows the fund to partake in the upside potential of equity investments while mitigating risk through a bond-like income feature.