Objective:
The Paradigm SMid-Cap Value Institutional portfolio is designed to outperform the Russell 2500 by 200 bps over a five-year period.
Investment Philosophy:
The SMid-Cap Value Institutional portfolio is equally weighted, holding 60-70 equities purchased at 1.5% of portfolio weight and trimmed at 2% to rebalance. The portfolio is composed of 80% reliable, consistent cash generators that have not attracted significant attention from Wall Street, and 20% special situations we think have the potential for significant outperformance.
Investment Process:
Portfolio Managers Jonathan Vyorst and Jason Ronovech and their team of analysts use a numerical ranking process to sort stocks into deciles based on key criteria, then weight a combination of factors to create a universe of roughly 400 names. They conduct qualitative analysis to identify undervalued companies with strong management teams, looking for "transformative change" that can drive outperformance.
|
Portfolio Characteristics:
|
Net Assets ($ million)
|
$409.3 |
| Number of Holdings: |
60 |
| One-Year Turnover: |
68.09% |
| Weighted Average Market Cap ($ million): |
$2,203.6 |
Median Market Cap
($ million): |
$2,145.8 |
| Index: |
Russell 2500
|
|
Key Differentiators:
- Portfolio designed to produce strong performance while minimizing volatility
- Equally weighted portfolio is systematically rebalanced
- Mix of consistent performers and special situations
- "Five Star Top Gun" award from PSN as of September 30th, 2007
|