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You should consider the Hotchkis & Wiley Small Cap Value Fund’s investment objectives, risks, and charges and expenses carefully before you invest. This and other important information is contained in the Fund’s summary prospectus and prospectus, which can be obtained by calling 800-796-5606. Read carefully before you invest.
Investing in smaller and/or newer companies involves greater risks than those associated with investing in larger companies. Please read the fund prospectus for a full list of fund risks.
Essentia’s Behavioral Alpha Benchmark is comprised of long-only active equity managers (and managers of ETF portfolios) from around the globe. They cover a wide range of equity investment strategies and degrees of concentration. The most recent assessment examined 81 portfolio managers using the Behavioral Alpha Score from January 1, 2022 through December 31, 2024 (assessment requires a minimum of three years of historical daily holdings data). The five managers with the highest aggregate scores across all decision types are recognized as top performers in the Q4 2024 Behavioral Alpha Benchmark ranking.
The Behavioral Alpha Score is determined using a systematic approach that evaluates investment decision-making skill over a 36-month period. The methodology isolates skill from market conditions by analyzing managers’ hit rates (the percentage of value-added decisions) and payoff ratios (the relative impact of good versus bad decisions). Each manager’s score is benchmark-adjusted and calculated based on seven key decision types: Stock selection – Did the manager choose stocks that outperformed relative to their benchmark; Entry timing – Did the manager initiate positions at advantageous times; Sizing – Were position sizes optimally determined based on expected return and risk; Scaling in – Did the manager build up positions effectively over time; Size adjusting – Did the manager make beneficial mid-position adjustments; Scaling out – Were reductions in position size executed effectively; Exit timing – Did the manager close positions at an optimal time?
Mutual fund investing involves risk. Principal loss is possible.
The Hotchkis & Wiley Funds are distributed by Quasar Distributors, LLC
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