The strategy uses original research to identify and exploit small-cap stocks which are out of favor during periods of temporary fundamental difficulty or are otherwise indisposed. Candidates typically have earning power and cash generation capabilities significantly higher than is generally understood and may be the objects of significant restructuring. Our process has been consistently and successfully applied to the same target universe for more than four decades.
Seeks to outperform the Russell 2000® Value Index over a full market cycle.
Our Small Cap Value Equity strategy is designed to exploit inefficiencies in the small cap sector of the market by carefully employing high value added, proprietary research to a universe of small capitalization, low-expectation stocks. This process is directed toward the discovery of companies in which the value of the underlying business is significantly greater than the market price. We refer to this phenomenon as the “value gap”. A “value gap” is typically indicated by below-average P/E ratios (on normalized earnings and relative to the market), above-average free cash flow yields, as well as better than market levels of internal growth and return on capital.
Top 10 Holdings
*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.