Small Company Equity Strategy

The strategy seeks to outperform the Russell 2000 Index with less volatility over a market cycle.

Dedicated small cap team with experience over market cycles
Objective is to outperform consistently with lower volatility over market cycles
Seek to achieve lower down market capture through deliberate risk management
Strive to add value through security selection driven by fundamental research process execution

Small Company Equity Commentary (PDF)

Small Company Equity Fact Sheet (PDF)

Small Cap Core

STYLE

Russell 2000

BENCHMARK

April 1, 2013

INCEPTION

$1.4 Billion

ASSETS UNDER MANAGEMENT

As of 9/30/2024

US Small Cap Core Equity

EVESTMENT UNIVERSE

Separate Account

Mutual Fund

INVESTMENT VEHICLES

Philosophy

We believe earnings growth is the primary driver of long-term equity returns, and we only invest in profitable small cap companies to capture positive returns and reduce downside volatility risk. We believe quality fundamental characteristics are critical to risk management and lower downside volatility. The strategy's sell discipline is driven by an investment thesis change that results in earnings uncertainty and permanently lower future earnings potential.

Portfolio Construction

Team seeks to invest in a diversified portfolio of 65 - 75 companies.
The starting universe typically consists of securities with a market capitalization less than $7 billion and adequate liquidity.
Team conducts a thorough analysis of each name, with specific emphasis on the business model, industry dynamics, and corporate strategy.
The strategy may not invest more than 3% in any single security at the time of purchase, and targets 15% to 30% allocation to each economic sector.
Individual position sizes vary but are generally within the range of 1.0% - 2.0%. The typical number of stocks in the portfolio varies depending on market conditions and analyst conviction.
Portfolio turnover has averaged 60% over the previous five years.