The Gotham Large Value Fund (the “Fund”) is a value weighted long-only U.S. equity strategy that selects from the largest 500 -700 U.S. companies based on market capitalization. The Fund seeks long-term capital appreciation by investing in long positions of equity securities and in doing so aims to achieve a total return greater than that of the S&P 500 over a full market cycle, which includes bull (rising) and bear (falling) markets.
Investment Strategy and Process
Gotham's proprietary equity research and risk controls are used to select the portfolio primarily from a large market capitalization universe.
The Co-CIOs and their team of equity analysts employ Gotham’s proprietary analytical framework to evaluate stocks within the coverage universe on measures of absolute and relative value.
The portfolio is rebalanced daily to weight most heavily those stocks that are priced at the largest discount to Gotham's assessment of value. In general, as a company appears cheaper, its weight in the portfolio increases.
Risk for the Fund is managed following a disciplined proprietary process limiting concentration in any one company, industry or sector. In addition, exposures are managed daily to remain within carefully defined ranges.