Small Company Equity Strategy

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

Earnings growth drives long-term equity returns
The strategy only invests in profitable small cap companies
Profitable small cap companies outperform with lower volatility over the long term
Quality fundamental characteristics are critical to risk management and lower downside volatility
Security selection focused on critical earnings drivers through in-depth fundamental research

Small Company Equity Commentary (PDF)

Small Company Equity Fact Sheet (PDF)

Small Cap Core

STYLE

Russell 2000 Index

BENCHMARK

April 1, 2013

INCEPTION DATE

$1.3 Billion

ASSETS UNDER MANAGEMENT

As of 03/31/2025

US Small Cap Core Equity

EVESTMENT UNIVERSE

Separate Account

Mutual Fund

Collective Investment Trust

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 60–70 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 5% in a single security and no more than 25% in a single industry.
Portfolio turnover has averaged 60% over the previous five years.