Pear Tree Polaris Foreign Value Small Cap Fund (QUSRX)

Overview

The fund described is an investment entity that focuses on capitalizing on investment opportunities in the small-cap value sector of foreign markets. It operates under a strategy that mandates at least 80% of its net assets, along with any borrowings for investment purposes, to be invested in equity securities of small-cap value issuers outside of the investor's home country. The aim of the fund is to generate returns through carefully selected investments in companies that are considered undervalued by the market but have strong potential for appreciation in line with their fundamental valuations and future cash flows. This investment approach suggests a focused yet aggressive strategy aimed at identifying and exploiting undervalued opportunities in international small-cap markets. The fund is characterized as non-diversified, implying that it might invest a larger portion of its assets in fewer issuers, which could result in more significant volatility or risk.

Products and Services

• Equity Securities Investment in Foreign Small-Cap Value Issuers

  This core offering involves investing at least 80% of the fund's net assets, in addition to borrowings for investment purposes, in equity securities issued by small-cap value companies located in foreign markets. The strategy focuses on identifying companies that are perceived to be undervalued by the market but possess the potential for significant price appreciation. The objective is to tap into the growth potential of these companies by investing in their equity securities.

• Investment in Mispriced Securities

  The fund's sub-adviser is tasked with the identification of 50 to 100 value securities, specifically focusing on small-cap securities in foreign markets that are believed to be mispriced. Mispricing, in this context, indicates that the securities are currently valued at prices that do not accurately reflect their intrinsic value based on fundamental valuations and anticipated future cash flows. The selection process aims to leverage extensive research and market analysis to uncover these investment gems, offering them the best chance for appreciable price correction and, consequently, significant returns for the fund.