We have an unwavering belief in the inefficiency of the small-cap marketplace. Extensive academic research supports Paradigm’s assessment that these phenomena are especially prevalent in the smaller end of the market cap spectrum. This anomaly continues to exist despite ebbs and flows of research coverage of small-caps.

Our philosophy has not changed over time, but technology has increased the availability of information and in some ways created more noise that provides opportunity for profit. Thus, we believe that disciplined fundamental research can identify mispriced small-cap equities whose short-term pricing does not accurately reflect the true earning potential of the company. We will not overpay for earnings, and we are relentless in our efforts to uncover high quality but undervalued investment ideas.

Our investment process is disciplined, yet flexible. Our multi-manager structure facilitates continuity and diversified expertise in the portfolio, while our entrepreneurial culture fosters creativity and rewards independent, critical thinkers with autonomy and incentives tied to performance.