Yorktown Small Cap Fund Institutional Class (YOVIX)

Overview

The fund is designed to cater to investors looking to gain exposure to the U.S. small-cap sector, specifically aligning its investments with the performance and characteristics of the Russell 2000 Index. By investing primarily in U.S. listed securities that fall within the market capitalization range of this benchmark, the fund aims to achieve its investment objective through a combination of quantitative and fundamental analysis. A significant portion of its assets, at least 80%, is dedicated to small-cap companies, with the flexibility to include a minority portion in American Depositary Receipts (ADRs) to enhance its portfolio diversification. The fund operates under the principle of not just following the market but selecting stocks through a meticulous process managed by its Investment Manager, who applies stringent criteria to pick approximately 40-60 stocks that potentially offer sustainable growth.

Products and Services

• Investment in U.S. Listed Securities

The core of the fund’s investment strategy revolves around U.S. listed securities with market capitalizations that mirror those of the Russell 2000 Index. This approach allows the fund to maintain a focused yet diversified portfolio of small-cap stocks, thereby targeting the growth opportunities within this segment of the market.

• Focus on Small Cap Companies

With a mandate to invest at least 80% of its assets in small cap companies, the fund underscores its commitment to this market segment. This focus is based on the belief that small cap stocks, despite their inherent volatility, offer significant growth potential over the long term, making them an invaluable component of investment portfolios seeking higher returns.

• American Depositary Receipts (ADRs)

Allowing for up to 15% of the portfolio to be invested in ADRs gives the fund an international dimension. This inclusion enables investors to benefit from the growth of foreign companies that are listed on U.S. exchanges, providing an added layer of diversification and the potential for enhanced returns.

• Selective Investment Process

The fund prides itself on a selective investment process, investing in 40-60 stocks that meet the rigorous quantitative and fundamental criteria set by the fund’s Investment Manager. This strategy aims to create a portfolio of high-quality stocks with the potential for outperformance, emphasizing the fund’s active management approach in seeking to achieve its investment objective.