Pear Tree Polaris International Opportunities Fund

(QISIX / QISRX / QISOX)

Portfolio Management

The Pear Tree Polaris International Opportunities Fund is sub advised by Polaris Capital Management. The Polaris investment Team took over as subadvisor of the fund in November 2019, and began managing the portfolio under its current investment philosophy until January 1, 2020. Polaris Capital Management, LLC is a Boston, Massachusetts money manager that specializes in the management of international, domestic and global equity portfolios.

Investment Philosophy

Polaris employs an unconstrained pure value equity selection process that is characterized as an active, all-capitalization investment approach.  The approach utilizes bottom-up research to uncover the most undervalued streams of free cash flow in the world.  Identifying these streams of sustainable cash flow (e.g. companies) requires a “statistically patient” investment process.  Polaris’ investment team believes normal market fluctuations will continue to produce undervalued companies.

To manage the International Opportunities Fund’s portfolio, though, its sub-adviser allows for more growth when modeling a company’s future cash flows and generally seeks to identify securities that are considered as having the best opportunity for total return. To select specific investments, the sub-adviser is opportunistic, that is, looking for market inefficiencies using a proprietary quantitative investment process focused on bottom-up fundamental research.

Portfolio Construction

Generally, International Opportunities Fund invests in foreign markets issuers in the countries represented by the MSCI ACWI ex USA Index. The International Opportunities Fund generally will be invested in issuers in fifteen or more foreign countries and fifteen or more industry sectors. However, International Opportunities Fund may be invested in securities from any country, any industry sector, or of any market capitalization amount.

 

 

 

 

Disclosure
- Foreign and Emerging Market Risk. Foreign markets, particularly emerging markets, can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market, or economic developments and can perform differently from the U.S. market. Emerging markets can be subject to greater social, economic, regulatory, and political uncertainties and can be extremely volatile.