SEPARATE ACCOUNT STRATEGIES

SMALL CAP VALUE

SEPARATE ACCOUNT STRATEGIES > SMALL CAP VALUE

OBJECTIVE

The strategy aims to provide long-term capital appreciation in a concentrated, high conviction portfolio of small capitalization value equity securities.

STRATEGY DESCRIPTION

The strategy provides exposure to the small capitalization segment of the value equity market through a fundamental, contrarian, bottom-up investment process.

The strategy employs a fundamental value philosophy and a disciplined bottom-up investment process to select equity positions. Thorough reviews are conducted on each company to ensure they are in line with our investment thesis and upside target potential return. Consideration in constructing a well-diversified portfolio includes:new positions added in tranches as the investment thesis is confirmed and a 5% limitation on a single position size. The portfolio is diversified by sector without limitations to weightings and exhibits a risk factor and average weighted market capitalization profile in line with the benchmark.  The strategy has consistently demonstrated high active share versus the Russell 2000 Value index.

CHARACTERISTICS & WEIGHTINGS

  • Fully invested, typically holding 40-60 companies
  • Position sizes: 0.5-5.0%, conviction-weighted with liquidity as a consideration
  • Market capitalization: The average weighted market capitalization is expected to be similar to the Russell 2000 Value benchmark
  • Industry and Sectors:  No limitation to industry and sector weightings
  • Position Limitations:
  • Maximum of 5% of the portfolio’s market value
  • Maximum of 10% of the total outstanding shares and 25 days total volume traded

PORTFOLIO MANAGERS

JOSHUA R. SCHACHTER, CFA
SENIOR PORTFOLIO MANAGER / PRINCIPAL
Bio >
ANNE S. WICKLAND, CFA
PORTFOLIO MANAGER / PRINCIPAL
Bio >

CONTACT INFORMATION

Snow Capital Management, L.P.
2000 Georgetowne Drive
Suite 200
Sewickley, PA 15143
Main: (724) 934-5800
Fax: (724) 934-5855
Email: info@snowcm.com
Portfolio Characteristics1
as of 12/31/18
SNOW SMALL 
CAP VALUE
RUSSELL
2000 VALUE
Market Cap (Billions)
$2.22
$1.85
Dividend Yield
1.63%
2.55%
EPS Growth – Long Term (I/B/E/S)
9.41%
6.52%
P/E – Forecast 12-Month
7.91%
11.71%
PEG Ratio
0.75
1.05
Price-to-Book
1.03
1.20
Market Cap Weightings3
as of 12/31/18
SNOW SMALL
CAP VALUE
Under $500 million
4%
$500 million - 1 billion
14%
$1 billion - 2 billion
30%
$2 billion - 3 billion
22%
$3 billion +
30%
TOTAL
100%
Top 10 Holdings3
as of 12/31/18
% OF STOCKS
Super Micro Computer, Inc.
4.95%
American Equity Investment Life Holding Co.
4.33%
F.N.B. Corp.
4.27%
Big Lots, Inc.
4.23%
Umpqua Holdings Corp.
4.14%
National General Holdings Corp.
4.11%
BankUnited, Inc.
4.02%
CNO Financial Group, Inc.
3.84%
Skechers U.S.A., Inc.
3.81%
Atlas Air Worldwide Holdings, Inc.
3.81%
TOTAL
41.51%
Industry Allocations3
as of 12/31/18
SNOW SMALL
CAP VALUE
Commercial Banks
22%
Consumer Discretionary (Consolidated)
16%
Industrials (Consolidated)
14%
Insurance
12%
Materials
9%
Information Technology (Consolidated)
8%
Consumer Staples (Consolidated)
7%
Oil, Gas & Consumable Fuels
5%
Capital Markets
4%
Health Care Providers & Services
2%
Cash
1%
Performance Data is best viewed in landscape on your mobile device.
as of 12/31/18
MTD
QTD
YTD
1 Year
3 Year
5 Year
7 Year
10 Year
Since Inception
(10/31/2006)
Composite Gross
-16.32%
-23.80%
-18.81%
-18.81%
2.59%
-0.98%
7.80%
14.28%
6.67%
Composite Net
-16.40%
-24.02%
-19.65%
-19.65%
1.57%
-1.97%
6.73%
13.16%
5.61%
Russell 2000 Value
-12.09%
-18.67%
-12.86%
-12.86%
7.37%
3.61%
9.57%
10.40%
4.90%
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
Composite Gross
-18.81%
8.35%
22.75%
-15.99%
4.92%
44.53%
22.98%
3.24%
31.63%
65.31%
Composite Net
-19.65%
7.28%
21.54%
-16.83%
3.88%
43.12%
21.77%
2.22%
30.33%
63.70%
Russell 2000 Value
-12.86%
7.84%
31.74%
-7.47%
4.22%
34.52%
18.05%
-5.50%
24.50%
20.58%

Snow Capital Management L.P. is a registered investment adviser. Registration of an Investment Advisor does not imply any level of skill or training. Snow Capital Management L.P. claims compliance with the Global Investment Performance Standards (GIPS®). A fully compliant GIPS presentation along with a complete list and description of all composites is available at www.snowcm.com or by calling 724-934-5800. The Snow Capital Management Small Cap Value composite contains fully discretionary value equity accounts and for comparison purposes is measured against the Russell 2000 Value Index. The Russell 2000 Value Index measures the performance of small cap value segment of the U.S. equity universe. It includes those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values. Indexes are unmanaged. It is not possible to invest directly in an index.

The U.S. Dollar is the currency used to express performance. Leverage is not used in this composite. Investing involves risk; clients may experience a profit or a loss. In addition to the normal risks associated with investing, investments in smaller companies typically exhibit higher volatility. Past performance is not indicative of future results.

Performance is preliminary. Returns for periods greater than a year are annualized. Returns include the reinvestment of all income. Results are based on fully discretionary accounts under management that are eligible for inclusion in the composite during the performance reporting period, including those accounts no longer with the firm. The performance of any individual portfolio may vary from the Composite’s performance. Pure gross returns are shown as supplemental information and are stated gross of all fees and transaction costs. Net of fee performance returns are calculated by deducting a model fee of 1.00%, which represents the highest applicable annual fee in effect for the respective time period, applied monthly. Snow Capital’s advisory fees are outlined in our Form ADV Part 2A (Brochure), which is available upon request. Actual investment advisory fees incurred by clients may vary.

Portfolio Characteristics are presented as supplemental information to the GIPS compliant presentation to illustrate an example of selected characteristics of the Snow Capital Management Small Cap Value Composite as of September 30, 2018 and how an individual portfolio might have been invested at that time. These illustrations may not be representative of the Composite’s or an individual portfolio’s current or future investments.

The Industry Allocation, Capitalization Weightings, and Top Ten Holdings are presented as supplemental information to the GIPS compliant presentation to illustrate an example of the industries and securities in which the Snow Capital Management Small Cap Value Composite was invested on September 30, 2018 and in which an individual portfolio might have been invested at that time. These illustrations may not be representative of the Composite’s or an individual portfolio’s current or future investments. There is no assurance that any of these stocks or sectors will be purchased in the future or are currently held in the portfolio. Top ten holdings reflect the composite’s cash position but not included as a holding in the list.

INVESTMENT PRODUCTS:  NOT FDIC INSURED   ●   NO BANK GUARANTEE   ●  MAY LOSE VALUE