The Rigel US Equity Small-Mid Cap Growth Fund (RGSMX) is a moderate growth product that utilizes an active, bottom-up approach for the selection of US stocks with market capitalizations between $500 million and $12 billion. Rigel's investment process seeks to identify stocks that have strong growth characteristics and the potential to immediately contribute to the portfolio.

Rigel's Investment philosophy was developed over 25 years ago by the firms founder George Kauffman.

Rigel's philosophy includes several distinctive beliefs that guide our process:

THE RIGEL PERSPECTIVE

• Rigel's process is built on the belief that stock prices are driven by supply and demand, within which earnings is just one of several contributing factors.
• Experience shows that stock price changes lead information about fundamentals.
• As a result, Rigel's process is grounded in fundamentals, but is highly influenced by quantitative, technical and price/volume analyses.

Rigel's process draws upon the traditional measures of growth but has additional distinctive elements:

• Rigel is a bottom up manager.
• Rigel seeks to identify break out stocks or stocks that have the potential to double or more in price in 12 to 18 months. These stocks are most likely to have demonstrated strong growth characteristics for some time, are in an industry with strong growth prospects but may be less visible than other stocks.
• Rigel is looking for stocks that will likely contribute to the portfolio immediately and can contribute for 12 to 18 months. 

• Rigel's process uses objective information in order to evaluate a stock. Professionals of the firm seldom seek to interview company management because managements tend to deliver marketing pitches and because it is more difficult to trim/liquidate a stock when one loses objectivity by buying into the companies "strategic story". The availability of information and strict disclosure requirements result in a wealth of public information on companies’ past performance and projections.
• Within its fundamental analyses, Rigel emphasizes objective data pertaining to a companies growth (revenues and EPS), margins and returns (ROE), with a preference for unit volume driven revenue growth.
• Rigel is focused on efficiently and effectively translating data into decision-making information.

• Rigel has risk control considerations that are an important part of stock selection and portfolio construction as well as our sell disciplines.
• Rigel has a designated Chief Risk Control Officer whose responsibilities include reviewing the portfolio daily, identifying problem stocks and recommending stocks to be trimmed and liquidated.

• Rigel uses a team approach to investment decision-making and implementation.
• The team approach ensures that our process is executed consistently over time and through varying market conditions.
• The team approach encourages commitment to and continuation of Rigel's process.
• All members of the investment team – CEO, portfolio managers, research analysts and our trading desk - are situated within our open-space investment center. This work environment greatly enhances Rigel's ability to swiftly communicate changing market conditions and our decision-making process.  

EPS: Earnings per share (EPS) is calculated by taking the total earnings divided by the number of shares outstanding.

ROE: Return on Equity (ROE) is a measure of a corporation's profitability. Represents average return on equity on the securities in the portfolio, not the actual return on equity on the portfolio.

Mutual fund investing involves risk. Principal loss is possible.