Small Cap Value
Key Investment Tenets
Growth
Profitability
Franchise
Valuation
Strong competitive position in a stable, expanding industry
Opportunity for an increase in revenue and earnings growth
Better relative earnings, free cash flow, and earnings growth
Established profit margins
Management focused on core business and aligned with stakeholders’ interests
Prudent use of debt and leverage
Evaluate relative to history, peers, and economic conditions
Strategy Highlights
STYLE: Small Cap Value
INCEPTION: 11/1/2010
BENCHMARK: Russell 2000 Value Index
CONCENTRATED: Target Number of Holdings 70-120
DIVERSIFICATION TARGETS: 5% maximum individual security weight & 25% maximum exposure to a particular industry, in general
DIVERSIFICATION TARGETS: Sector and Industry neutral to the benchmark (+/- 5%) and looks to add value through bottom-up, fundamental security selection
LOW TURNOVER: 15 to 60% annually
FULLY INVESTED: Average cash allocation of 1 to 5%
Investment Policy Committee
Jeffrey Kerrigan, CFA Committee Chair
E. Martine Elie, CFA
John Beaver, CFA
Bob Schrock, CFA
Investing involves risk. Principal loss is possible. Before investing, consider the investment objectives, risks, charges and expenses.