Capture the Value Premium with Small Cap Companies
The Quality Small Cap Value strategy considers valuation, momentum and profitability in an effort to efficiently capture the opportunity for small cap outperformance.
The Quality Small Cap Value strategy seeks to efficiently capture the small-cap premium by investing in a diverse portfolio of quality, undervalued small cap companies. The strategy applies a multi-factor model – considering valuation, momentum and profitability – to identify reasonably priced, profitable small cap stocks and avoid those with signs of distress.
STRATEGY HIGHLIGHTS
A Multi-Factor Model with Value, Quality, Momentum, & Size
Proprietary factor definitions, smart multi-factor construction, and efficient use of risk come together to pursue predictable outcomes.
Value
The Value factor targets companies that trade at low current valuations.
Value strategies seek to provide excess returns as companies grow and their current valuations become more in line with normalized and prospective valuations.
Quality
The Quality factor targets companies with efficient management, profitability, and strong cash flows.
Quality strategies seek to provide excess returns by investing in companies that are better positioned for short and long term growth.
Momentum
The Momentum factor targets companies that have strong market sentiment and analyst sentiment.
Momentum strategies seek to provide excess returns by investing in companies with strong tailwinds for
higher growth than the benchmark.
Size
The Size factor targets companies of smaller market capitalization.
Size strategies seek to provide excess returns by investing in companies of smaller size that have more room to grow within their industries and geographies.
