Hartford Schroders US Small Cap Opportunities Fund
November 2018 Monthly Update
The Fund seeks capital appreciation by combining three diversified, uncorrelated sources of potential alpha1:
Companies that can offer an unrecognized or underappreciated growth dynamic over the ensuing 2-3 years
Companies with stable growth characteristics, slower but more predictable revenues and earnings patterns
Companies whose growth engine appears to have broken, but there appears to be evidence that growth is returning
1 Alpha is a measure of the performance of a portfolio after adjusting for risk. Alpha is calculated by comparing the volatility of the portfolio and comparing it to some benchmark. The alpha is the excess return of the portfolio over the benchmark.
2 EBITDA is the measure of a company's earnings before interest, taxes, depreciation, and amortization and is typically used as a proxy for a company’s current operating profitability.
Important Risks: Investing involves risk, including the possible loss of principal. There is no guarantee a fund will achieve its stated objective. Security prices fluctuate in value depending on general market and economic conditions and the prospects of individual companies. ● Small-cap securities can have greater risks and volatility than large-cap securities ● The main risk of real estate related securities is that the value of the underlying real estate may decrease in value.
The views expressed herein are those of Schroder Investment Management North America Inc. (Schroders) are for informational purposes only, and are subject to change based on prevailing market, economic, and other conditions. They may not reflect the views of Hartford Funds or any other sub-adviser to our funds and should not be construed as research or investment advice or as an offer or solicitation to buy or sell any security.