The strategy aims to provide long-term capital appreciation in a concentrated, high conviction portfolio of small and mid-sized capitalization value equity securities.
The SMID Cap Value strategy provides exposure to the small and mid-sized capitalization segments 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 philosophy and upside potential return target. The methodology 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, with special consideration given to the overall mix of small and mid-cap companies. The portfolio is diversified by sector without limitations to weightings and exhibits a risk factor and average weighted market capitalization profile inline with the benchmark. The strategy has consistently demonstrated high active share versus the Russell 2500 Value index.
CHARACTERISTICS & WEIGHTINGS
* Returns are from inception 09/30/13 through 12/31/13
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 SMID Cap Value composite contains fully discretionary commission accounts where approximately 85% (+/10%) of the assets are invested in the Snow Capital Small Cap Value strategy and 15% (+/-10) of the assets are invested in the companies within the range of market caps defined by the Russell 2500 Value Index. The Russell 2500 Value Index measures the performance of the broad value segment of the U.S. equity universe. It includes those Russell 2500 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 SMID 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 SMID 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 cash is not included as a holding in the list.