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TETON Westwood SmallCap Equity Fund

Small Caps in 2023

  • Small Caps today sell at the widest discount relative to large caps in 35 years*
  • We believe a strong domestic economy will drive revenue growth, margin expansion and higher earnings for small cap companies
  • Since the March 2020 pandemic-driven market low, the Russell 2000 small cap index has outperformed the S&P 500 index by 33 percent, coinciding with a sharp rise in inflation expectations and interest rates**
  • When the economic backdrop is set for faster growth, higher rates and rising inflation, small cap stocks have beaten large caps by an average of 400 basis points over most periods going back to 1966***
  • With infrastructure spending and a return of manufacturing to the US from abroad, economically sensitive small caps are entering into a potential new outperformance cycle, following a period of underperformance from 2013 to 2020
  • A major merger and acquisition (M&A) wave is sweeping across the small cap landscape, with $5.8 trillion in overall global deal activity in 2021, including a large swath of small companies. Regional banks are among the targets with 150 deals announced last year where we have an overweight

Fund Characteristics

  • The TETON Westwood SmallCap Equity Fund seeks to provide long-term capital appreciation.
  • The Fund targets undervalued equities that have a market capitalization between $100 million and $2.5 billion.
  • The Portfolio Manager employs bottom-up fundamental research with an emphasis on balance sheets, asset values, cash flow and earnings growth potential.

Investment Strategy

  • Broadly diversified portfolio
  • Disciplined, research-driven
  • Strict valuation criteria
  • Seeks pricing inefficiencies
  • Catalyst and growth to unlock value
  • Consistent buy and sell discipline

Resources

*Barrons article "Small-Caps Are Cheaper Than Large Caps. Why Long-Term Investors Should Care." 9/13/2021; **CME Group article "Trends in Small-Cap Stocks Amid Inflation, Turbulence" 1/14/2021; ***Jefferies Equity Research Report 1/7/2022

The Fund's share price will fluctuate with changes in the market value of the Fund's portfolio securities. Stocks are subject to market, economic and business risks that cause their prices to fluctuate. When you sell Fund shares, they may be worth less than what you paid for them. Consequently, you can lose money by investing in the Fund.

Investors should consider the investment objectives, risks, sales charges and expense of the fund before investing. Securities of smaller companies present greater risks than securities of larger, more established companies. The stocks of smaller companies may trade less frequently and experience more abrupt price movements than stocks of larger companies, therefore, investing in this sector involves special challenges.

Investors should consider the investment objectives, risks, sales charges and expense of the fund carefully before investing.The prospectus contains more complete information about this and other matters.The prospectus should be read carefully before investing. You can obtain a free prospectus by calling Teton Advisors, Inc. at 1-800-WESTWOOD (1-800-937-8966), or contacting your financial representative or by visiting http://www.tetonadv.com.

Distributed by G.distributors, LLC., a registered broker-dealer and member of FINRA.