Small Company Equity Strategy

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
Objective to achieve lower down market capture than peers through deliberate risk management
Seek to add value through security selection resulting from fundamental research and analysis

Small Company Equity Commentary (PDF)

Small Company Equity Fact Sheet (PDF)

Core
STYLE

Russell 2000
BENCHMARK

April 1, 2013
INCEPTION

Philosophy

We believe earnings growth is the primary driver of long-term equity returns, and we only invest in profitable small cap companies, which are positioned across the investment cycle based on future earnings expectations trends. This investment cycle framework drives stock selection, portfolio construction, and risk management with a focus on capturing the positive long-term benefits of investing in small cap stocks while minimizing the volatility inherent in the asset class.

Portfolio Construction

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.

Strategy Facts

As of 6/30/2023
Assets Under Management	$1.1 billion
eVestment Universe	U.S. Small Cap Core Equity Universe
Investment Vehicles	Separate Account Mutual Fund

Meet the Team

Jason V. Ronovech, CFA

Vice President, Senior Portfolio Manager

Career Summary
Sentinel Investments
Paradigm Capital Management
Prudential Financial

Education
BA - Hamilton College

Meet Jason Ronovech

Srikanth Gullapalli

Vice President, Senior Equity Research Manager

Career Summary
Congress Asset Management

Education
BCom - Osmania University
MBA - Vignana Joythi Institute of Management
MS - University of Saint Thomas

Meet Srikanth Gullapalli

John T. Stewart

Assistant Vice President, Senior Equity Research Analyst

Career Summary
Sentinel Group
National Life Insurance Company
General Dynamics

Education
BA - University of Vermont
MBA - University of Vermont

Meet John Stewart

Lenny A. Valvano, CFA

Equity Research Analyst

Career Summary
Paradigm Capital Management

Education
BS - Siena College

Meet Lenny Valvano

Meet Public Equity Team

Explore the Benefits of Profitable Small Cap Stocks

Explore our latest white paper for a more detailed look inside the benefits of profitable small cap stocks. Small cap stocks have generated attractive investment returns over the long term. In addition, the profitable segment of small cap stocks has outperformed unprofitable small cap stocks with significantly lower volatility over time. The Fort Washington Small Company Equity strategy only invests in profitable small cap stocks, avoiding unprofitable small cap stocks and reducing the risk levels of investing in small cap stocks.

Exploring the Benefits of Profitable Small Cap Stocks

Resources

Small Company Equity Commentary (PDF)

Small Company Equity Fact Sheet (PDF)

Small Company Equity Strategy

Philosophy

Portfolio Construction

Strategy Facts

Meet the Team

Jason V. Ronovech, CFA

Srikanth Gullapalli

John T. Stewart

Lenny A. Valvano, CFA

Explore the Benefits of Profitable Small Cap Stocks

Resources

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