The strategy seeks to outperform the Russell 2000 Index with less volatility over a full market cycle.
Dedicated small cap team with experience over market cycles
Research process focused on four stages of the equity investment cycle
Disciplined approach for each stage of the equity investment cycle
Compelling risk-return portfolio metrics
Small Cap Core
STYLE
Russell 2000
BENCHMARK
Jan. 1, 2018
INCEPTION
Philosophy
The Small Company Equity team believes that equity investments experience a four stage investment cycle (Low Expectations, Rising Expectations, High Expectations, Falling Expectations). The research focus and goal is differentiated for each stage of the investment cycle. Stock selection is focused on four critical business model factors: revenue growth, profit margins, free cash flow conversion, and capital deployment.
Team seeks to invest in a diversified portfolio of 70-90 companies.
The starting universe typically consists of securities with a market capitalization less than $5 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 5% in any single security at the time of purchase, nor shall it hold more than 25% of assets in a single industry.
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; however, it will typically range between 70-90.
Portfolio turnover has averaged 60% over the previous five years.
Management
Jason V. Ronovech, CFA
Vice President, Senior Portfolio Manager
Career Summary Sentinel Investments
Paradigm Capital Management
Prudential Financial
Frank Russell Company (FRC) is the source and owner of the Russell Index data contained or reflected in this material and all trademarks and copyrights related thereto. The presentation may contain confidential information pertaining to FRC and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is a Fort Washington presentation of the Russell Index data. Frank Russell Company is not responsible for the formatting or configuration of this material or for any inaccuracy in Fort Washington’s presentation thereof.
Ready to Continue?
You have clicked a link to access information on a new website, so you will be leaving westernsouthern.com.
Because this new site is independent, Western & Southern Financial Group neither manages nor assumes responsibility for its content.
