Determine, based on Beamon’s description of the Ogive Fund’s characteristics, his likely inclination to aggressively implement the fund’s strategy. Justify your response.

Morris next meets Robin Barker, portfolio manager for North Circle Advisors’ small-cap value fund, the Pengwyn Fund, which just received a very large cash inflow. Barker expects equity markets will drift higher in the near-term and asks Morris about the best ways to minimize cash drag for the Pengwyn Fund after the inflow.

Lindsey Morris is a trader at North Circle Advisors, an investment management firm and adviser to a suite of value-oriented equity mutual funds. Will Beamon, portfolio manager for the firm’s flagship large-cap value fund, the Ogive Fund, is explaining its investment strategy and objectives to Morris. Morris wishes to know how the Ogive Fund’s underlying trading motivations may impact trade urgency and alpha decay. Beamon notes the following relevant characteristics of the Ogive Fund:
• Seeks long-term outperformance vs. S&P 500 by investing in undervalued companies • Evaluates company fundamentals to identify persistent mispricing opportunities • Has a three-year average holding period