DSMC

DSMC seeks to identify undervalued companies using free cash flow. The fund targets the US mid- and small-cap space, which the adviser defines as the bottom 15% of the total US market capitalization. To be eligible for inclusion, companies must: (i) be headquartered in the US, (ii) have sufficient liquidity, (iii) have reported free cash flow data for the last three fiscal years, and (iv) have forward EBITDA estimates. The fund's initial universe excludes companies with negative forward 12-month free cash flow estimates from FactSet Research Systems. Eligible companies are then reviewed using a proprietary analysis that focuses on free cash flow yield, which the adviser believes indicates a company's valuation. In addition, the fund adviser also considers a company's leverage calculation to measure quality. As an actively managed fund, the adviser has the discretion to include or exclude companies based on unusual data or fundamental conditions.