Small Company Equity

Philosophy

The Small Company Equity team believes small cap stocks can be inefficiently priced due to low liquidity, less analyst coverage, and short-term investor focus. The strategy seeks to drive successful investment outcomes through a consistent research approach that identifies positive business model changes and improving fundamentals.   

Process and Portfolio

An initial universe of 2,000 U.S. companies with a market capitalization between $500 million and $4 billion is narrowed down to 80 to 100 portfolio positions using proprietary quantitative screens and rigorous fundamental analysis centered on company financials and trends influencing the industry. Critical factors are assessed including revenue growth acceleration, profit margin expansion, free cash flow conversion, and capital deployment. The team evaluates a company’s corporate strategy through discussion of key opportunities and risks with company management. Valuation and technical analysis are conducted to determine optimal entry and exit points.

Objective

The Small Company strategy seeks to outperform the Russell 2000 Index with enhanced downside protection and less volatility over a full market cycle. The team executes a bottom-up, fundamental investment strategy designed to deliver growth of capital.

Strategy Snapshot

  • Small cap U.S. core equity strategy
  • Benchmark: Russell 2000
  • Focus on industry trends, corporate strategy, and financial analysis
  • Team of three dedicated to the Small Company Equity strategy

Our Blog helps you Separate News from Noise. Visit for our latest insights.

 

Linked Website Sites: We Do Not Take Responsibility for Links to Third Party Content
Please note: clicking on external links means you will be leaving this Web site and you assume total responsibility and risk for your use of the site(s) you are visiting.  

Important Disclosure: This Website is for informational purposes only and does not constitute a complete description of our investment services or performance. This Website is in no way a solicitation or offer to sell securities or investment advisory services except, where applicable, in states where we are registered or where an exemption or exclusion from such registration exists. The expressed views and opinions presented on this website are for informational purposes only, are based on current market conditions, and are subject to change without notice. Although information and statistics contained herein have been obtained from sources believed to be reliable and are accurate to the best of our knowledge, Fort Washington cannot and does not guarantee the accuracy, validity, timeliness, or completeness of such information and statistics made available to you for any particular purpose. Material presented should not be considered as investment advice or a recommendation of any particular security, strategy, or investment product. Past performance is not indicative of future results. No part of this Site or the materials herein may be reproduced in any form, or referred to in any other publication, without express written permission of Fort Washington Investment Advisors, Inc.

THERE ARE NO WARRANTIES EXPRESSED OR IMPLIED, AS TO ACCURACY, COMPLETENESS, OR RESULTS OBTAINED FROM ANY INFORMATION POSTED ON THIS OR ANY "LINKED WEBSITE."

© 2017 Fort Washington Investment Advisors, Inc.