U.S. Equity

Small/Mid-Cap Value

The Small/Mid Cap Value portfolio uses a rigorous bottom-up research approach to identify intrinsically undervalued companies with strong and/or improving franchise quality. The universe of stocks includes companies whose capitalizations typically range from $100 million to $15 billion. The strategy is typically benchmarked to the Russell 2500 Value Index. Concentration guidelines and risk controls generally will include: position weightings no greater than 5% at cost, industry weights less than 25% and sector weights less than 30%.Convertible bonds and ADRs (excluding Canada and all islands of the Caribbean, including the Bahamas and Bermuda) are limited to 20%.

Our equity research team performs extensive bottom-up research on companies and industries focusing on qualitative factors such as restructuring, management strength, shareholder orientation and the ability to capitalize on improving industry fundamentals. In addition, a broad range of fundamental valuation metrics are utilized—price-to-cash flow, price-to-book, price-to-earnings and liquidation/replacement value. The portfolios are generally diversified across 40 to 85 companies representing strong risk/return characteristics.

*Closed to new investors.

Return to Strategies and Investment Vehicles

Primary Benchmark

Russell 2500 Value

Investment Vehicles

Institutional Portfolio

Managed Account*

Managed Account Product Literature

All investments carry risk, including the possible loss of principal and there is no assurance that an investment will provide positive performance over any period of time. The strategy’s potential investment in non-U.S. stocks presents risks such as political risk, exchange rate risk and inflationary risk, which include the risks of economic change, social unrest, changes in government relations, and different accounting standards. American Depositary Receipts (ADRs) are the receipts for the shares of a foreign based company traded on U.S. exchanges. ADRs do not eliminate the currency and economic risks for the underlying shares in another country. There may be special risks associated with small- and midsize company investing, including potentially increased volatility with smaller companies. Value style investing presents the risk that the holdings or securities may never reach their full market value because the market fails to recognize what the portfolio management team considers the true business value or because the portfolio management team has misjudged those values. In addition, value style investing may fall out of favor and underperform growth or other style investing during given periods. Convertible Securities are usually bonds or preferred shares that can be converted into common stock. Cash equivalents are generally limited to no more than 10% of the portfolio market value except during the initial start-up period and other transactional periods. Russell 2500™ Value Index measures the performance of those Russell 2500 companies with lower price-to-book ratios and lower forecasted growth values.