The SMID Cap Value strategy provides exposure to the small and mid-sized capitalization segment of the value equity market through a fundamental, contrarian, bottom-up investment process.
Aims to provide long-term capital appreciation through a concentrated, high-conviction portfolio of small and mid-sized capitalization value equity securities.
Co-Portfolio Managers Josh Schachter and Philip Greenblatt have an average of 16 years of value investing experience and are supported by a seven-person investment team.
The conviction-weighted portfolio consists of 50 to 70 small and mid-cap stocks. 40 to 60 names range in market cap from $100m to $3b, while the remaining 7 to 10 stocks are mid cap, which can be up to $25B at purchase.
Investment philosophy that is consistent with modern behavioral finance research and aims to take advantage of investor overreactions to negative surprises.
Fundamental research process focuses on identifying out-of-favor stocks that are in sound financial condition and should experience an upward rerating in their P/E ratio with a positive shift in investor sentiment.
The pessimism of 2022 continued into the third quarter, as the majority of major indexes again posted negative results for the quarter. War in Europe, runaway inflation, rising interest rates and expectations of a collapse in corporate profits weighed on capital asset prices.
Learn MoreThe Snow SMID Cap Value strategy outpaced the benchmark by 336 basis points during the quarter, rallying 12.57% gross of fees (12.39% net of fees), while the Russell 2500 Value index gained only 9.21%. For the year, the strategy outperformed the benchmark by 608 basis points, returning -7.00% gross of fees (-7.61% net of fees), while the Russell 2500 Value declined -13.08%.
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