Russell 3000 Members by Capitalization
Small-Micro Cap Strategy
Around 2% of the stock exchange is capitalized by the small-micro cap segment. This includes about half of the aggregate number of publicly traded securities. This segment is grossly overlooked due to its relatively small size. Albeit potentially higher risks, strong returns have been produced in relation to the overall market.
We invest in catalyst-rich companies that we believe will have an increase in earnings and solid growth within the next 12 to 24 months. Our screening process involves rigorous bottom-up research that includes a balance of fundamental & technical analysis and various factors such as a company's overall financial health, reviewing financial statements, products and services, supply and demand, and other performance indicators.
Strength in Value Strategy
We seek and invest in undervalued companies across a broad range of industries through our stringent fundamental, long-term, bottom-up approach. These companies are quite often undervalued due to being under the radar, unglamorous, and have an underestimated growth outlook.
Rather than building a portfolio with a large number of holdings, our strategy is concentrated on investing 20 or less individual securities that we believe have high value and compelling catalysts. This strategy allows us to potentially generate significant returns compared to the overall market. Research has also shown that concentrated portfolios tend to outperform more diversified actively managed portfolios(1). We expect significant price and value appreciation anywhere between 12 to 24 months, some as early as 3 months.
(1) Source: Yeung et al. (2012), Randolph B Cohen et al. (April 20th, 2010)