Objective:
The Paradigm SMid-Cap portfolio is managed with the goal of moderating volatily while still providing exposure to carefully selected small to mid-cap domestic stocks.
Investment Philosophy:
The SMid-Cap portfolio is typically equally weighted, generally holding 60-70 equities purchased at 1.5% of portfolio weight and trimmed at 2.5% to rebalance. The portfolio is composed of approximately 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.
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Portfolio Characteristics:
| Inception Date: |
7/1/2000 |
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Net Assets ($ million)
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$382.2 |
| Number of Holdings: |
69 |
| One-Year Turnover: |
61.62% |
| Weighted Average Market Cap ($ million): |
$2,265.1 |
Median Market Cap
($ million): |
$1,866.5 |
| Index: |
Russell 2500
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Key Differentiators:
- Portfolio designed to produce strong performance while minimizing volatility
- Equally weighted portfolio is systematically rebalanced
- Mix of consistent performers and special situations
- "Six-Star Top Gun" award from PSN as of December 31, 2010
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