Mid Cap Value Equity

Spectrum #9
Susie Rosamin
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About Mid Cap Value Equity

The strategy focuses on securities that are not widely followed by industry analysts, giving us a greater opportunity to seek out undervalued companies utilizing our internal in-depth research. The extensive experience of our investment team, both in absolute terms and in years working together, brings value to the qualitative component of the decision-making process.

Investment Process

Investment Objective:

Seeks to outperform the Russell Midcap® Value Index over a full market cycle.

Investment Overview:

We seek quality companies that are temporarily undervalued for reasons we can identify, understand, and believe will improve over time. In our valuation framework, we strive to construct portfolios that trade at levels below the market across multiple metrics (P/E,P/B) while simultaneously delivering an above-market dividend yield.

Strategy Summary

as of 12/31/2020
Asset Class
US Equity
Investment Style
Value
Portfolio Benchmark
Russell Midcap® Value Index
Separate Account
Open

Additional Information

Media Spotlight

Mark Giambrone Discusses Midterm Elections and Markets on Fox Business
November 7, 2018
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Mark Giambrone Discusses Market Trends on CNBC
November 6, 2018
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Portfolio Characteristics

as of 12/31/2020
Portfolio
Russell Midcap® Value Index
Russell Midcap® Index
P/E Ratio (Forecasted 12 Months)
15.4
17.5
20.9
P/B Ratio
1.8
2.2
3.0
Weighted Average Market Cap ($M)
12,423
17,855
20,282
Median Market Cap ($M)
7,818
8,555
9,622
Dividend Yield
1.8
2.0
1.5

Top 10 Holdings

as of 12/31/2020
Discover Financial Services
3.3%
Element Solutions Inc
3.2%
Valley National Bancorp
3.0%
Microchip Technology Incorporated
2.9%
American Campus Communities, Inc.
2.9%
Jefferies Financial Group Inc.
2.9%
Axis Capital Holdings Limited
2.8%
MGM Growth Properties LLC Class A
2.8%
Aramark
2.8%
MGM Resorts International
2.7%
Excludes Cash

Sector Weightings

as of 12/31/2020
Financials
24.1%
Industrials
19.8%
Consumer Discretionary
19.4%
Real Estate
9.8%
Materials
7.2%
Health Care
5.3%
Utilities
4.2%
Information Technology
4.0%
Energy
3.8%
Consumer Staples
2.3%
Excludes Cash

Performance

Annualized Portfolio Returns as of 12/31/2020
Qtr*
1 Year
3 Year
5 Year
10 Year
Mid Cap Value Equity - Gross Returns
24.46%
7.15%
3.76%
8.26%
10.34%
Mid Cap Value Equity - Net Returns
24.34%
6.65%
3.26%
7.76%
9.84%
Russell Midcap® Value Index
20.43%
4.96%
5.37%
9.73%
10.49%
Russell Midcap® Index
19.91%
17.10%
11.61%
13.40%
12.41%

*Most recent quarter returns are not annualized. Past performance does not guarantee future results and there is no assurance that the Strategy will achieve its investment objective.

Disclosure

Sources for data noted above are from APX and FactSet as of the date specified.

Barrow Hanley gross returns are shown before investment management fees and custody expenses. Index returns do not reflect transaction costs, management fees, and other expenses. Performance is expressed in U.S. currency. Net returns are calculated using a model fee. The model fee is based on a $100 million portfolio using our standard fee schedule. Barrow, Hanley, Mewhinney & Strauss, LLC claims compliance with the Global Investment Performance Standards (GIPS®).

Frank Russell Company is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. The data presented may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is prepared by Barrow Hanley. Russell Investment Group is not responsible for the formatting or configuration of this material or for any inaccuracy in Barrow Hanley's presentation thereof.

The Global Industry Classification Standard (“GICS”) was developed by and is the exclusive property and a service mark of MSCI Inc. (“MSCI”) and Standard & Poor’s, a division of The McGraw Hill Companies, Inc. (“S&P”) and is licensed for use by Barrow, Hanley, Mewhinney & Strauss, LLC. Neither MSCI, S&P, nor any third party involved in making or compiling the GICS or any GICS classifications makes any express or implied warranties or representations with respect to such standard or classification (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability and fitness for a particular purpose with respect to any of such standard or classification.  Without limiting any of the foregoing, in no event shall MSCI, S&P, any of their affiliates or any third party involved in making or compiling the GICS or any GICS classifications have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

All institutional product information has been provided by Barrow, Hanley, Mewhinney & Strauss, LLC. Any questions about this material or requests for additional information may be made directly to the firm by contacting us here.

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