Wasatch U.S. Select Fund Investor Class (WAUSX)

Overview

The fund described focuses on investing primarily in equity securities of companies located in the United States but doesn't shy away from international exposure. By allocating at least 80% of the fund's net assets (including any borrowings for investment purposes) to domestic equities, it aims to tap into the growth potential of U.S.-based companies across all market capitalizations. This broad approach suggests a flexibility to invest in both large, well-established companies and smaller, potentially faster-growing entities. The allowance to invest up to 20% of its total assets in foreign companies indicates a strategic openness to diversification, aiming to capture growth opportunities beyond American borders. However, it's notable that the fund is "non-diverse," indicating a concentrated investment strategy that may focus on fewer companies, potentially increasing risk and volatility but also possibly leading to higher returns.

Products and Services

The fund offers a focused investment product characterized by its strategic allocation in equity securities, detailed as follows:

• Equity Securities of U.S. Companies: The cornerstone of the fund’s investment strategy is its commitment to invest at least 80% of its net assets in the equity securities of U.S. companies. This includes investments across all market capitalizations, providing a robust exposure to the American economic landscape through common stocks. This broad market approach allows the fund to tap into a variety of sectors and industries, potentially spreading risk while seeking growth and value.
• Equity Securities of Foreign Companies: To diversify its portfolio and perhaps hedge against U.S. market volatility, the fund is permitted to allocate up to 20% of its total assets at the time of purchase to foreign companies. These are entities incorporated outside the U.S., with securities that primarily trade in non-U.S. markets. This strategic allowance for international exposure enables the fund to participate in global growth opportunities, which could enhance returns while diversifying investment risk.