Small Cap Equity Process Overview

Macro-Economic Overlay

  • Identify long term trends and themes
  • Quantify global fiscal and monetary policies
  • Formulate likely domestic equity market response

Opportunity Universe Screen

  • Russell 2000 and Russell 1000 Index below $2B in market cap
  • Attractiveness based on valuation and quality factors
  • Top quintile considered for investments
  • Investable universe of 350-400 small caps

Fundamental Research

  • Proprietary research conducted by Irving Magee professionals
  • Assessment of business models within context of macroeconomic view
  • Price targets derived using multiple methodologies

Portfolio Construction

  • Portfolio typically holds 50-70 securities
  • Typical equity weighting between 1-7%
  • Exposure to all 10 MSCI GICS sectors between 1-40%
  • Expected annual portfolio turnover of 30-40%