TETON Westwood Mighty Mites Fund Class A (WMMAX)

Overview

The fund is designed to cater to investors looking for growth opportunities in the micro-cap sector, focusing on companies with a market capitalization of $500 million or less at the initial time of investment. It aims to identify and invest in these smaller companies which are perceived to be undervalued compared to their private market value— the price a knowledgeable investor would be willing to pay for ownership. By leveraging the expertise of its sub-adviser in evaluating such opportunities, the fund provides a pathway for participants to tap into potentially high-growth avenues that might otherwise be overlooked. Additionally, the fund diversifies by allocating a portion of its portfolio to foreign securities, including European Depositary Receipts (EDRs) and American Depositary Receipts (ADRs), enhancing its exposure to global growth dynamics.

Products and Services

• Investment in Micro-Cap Stocks

  The core focus of the fund is to invest in common stocks of smaller companies that are considered to be underpriced relative to their private market value. These are typically companies with a market capitalization at or below $500 million. The investment strategy relies on in-depth analysis and evaluation to identify potential growth opportunities within this segment, aiming to achieve superior returns for the investors by capitalizing on the undervaluation.

• Assessment of Private Market Value

  Central to the fund's strategy is the concept of "private market value," which estimates the price informed investors would be willing to pay to acquire a company outright. This valuation framework enables the fund to gauge the underlying value of investments, ignoring the short-term fluctuations and noise of the public market. It facilitates a more informed decision-making process, focusing on long-term growth prospects.

• Investment in Foreign Securities and Depositary Receipts

  To diversify its investment portfolio and reduce risks associated with market volatility, the fund allocates up to 25% of its total assets in foreign securities. This includes investments in both European Depositary Receipts (EDRs) and American Depositary Receipts (ADRs), allowing fund participants to gain exposure to overseas markets and companies. This strategic allocation broadens the investment horizon of the fund beyond domestic markets, providing a balanced approach to micro-cap investing.