Portfolio Guidelines

  • Typically 50–80 positions
  • Maximum position size is 7%
  • Top 10 holdings are typically greater than 25% of net assets
  • Maximum industry exposure is 20%
  • Maximum sector exposure is 30%

Market Capitalization

The portfolio typically invests in companies with a market capitalization below $3.0 billion (or, if greater, the maximum market capitalization of companies generally within the capitalization range of the Russell 2000 Index) at the time of purchase.

Top Ten Equity Holdings
As Of September 30, 2018

Vail Resorts, Inc. Cons. Discretionary 4.1%
Live Nation Entertainment, Inc. Communication Services 4.0
Bank OZK Financials 2.9
Avis Budget Group, Inc. Industrials 2.7
Red Rock Resorts, Inc. (Cl A) Cons. Discretionary 2.7
Trinity Industries, Inc. Industrials 2.7
Navigators Group, Inc. Financials 2.7
iStar, Inc. Real Estate 2.4
Cimarex Energy Co. Energy 2.4
Enstar Group Ltd. Financials 2.3
Total As % Of Net Assets 28.9%
Total Number Of Equity Holdings 68

Sector Allocation1
As Of September 30, 2018

Small Cap Composite Russell 2000 Index Russell 2000 Value Index
Financials 25.0% 17.4% 28.2%
Industrials 18.6 15.1 12.3
Cons. Discretionary 11.3 12.2 9.5
Real Estate 6.5 6.7 11.2
Info. Technology 5.7 13.9 10.3
Consumer Staples 5.6 2.6 2.5
Communication
Services
4.5 3.3 3.0
Health Care 3.9 16.6 5.0
Energy 3.6 4.8 7.5
Utilities 2.3 3.1 6.0
Materials 0.6 4.2 4.4
Cash & Other 12.4 0.0 0.0

Portfolio Characteristics Vs. Benchmark2

As Of September 30, 2018

Small Cap Composite Russell 2000 Index Russell 2000 Value Index
Median Forward P/E 16.0x 18.0x 16.3x
Median Trailing P/E 20.0x 21.0x 18.9x
Weighted Average Dividend Yield 1.2% 1.2% 1.9%
Median Price / Book 1.9x 2.2x 1.7x
Median Price / Sales 1.6x 2.4x 1.9x
Median Market Cap. $3.8B $0.9B $0.8B
Weighted Average Market Cap. $4.9B $2.4B $2.1B
Portfolio Turnover 5 Year 20% —   —  
Active Share3 vs. Core4 / Value5 Benchmark 98% / 97% —   —  
Upside/Downside Capture Ratio6 vs. Core Benchmark4 84% / 74% —   —  
Upside/Downside Capture Ratio6 vs. Value Benchmark5 90% / 81% —   —  

1 Cash & Other may include cash, treasuries, money market funds, and short duration fixed income funds

2 Source: FactSet.

3 Source: Morningstar Direct. Active share measures the difference between portfolio holdings and the benchmark. The higher the active share, the greater the difference.

4 The Russell 2000 Index is the core benchmark.

The Russell 2000 Value Index is the value benchmark.

6 Source: eVestment Analytics based on monthly returns (gross of fees) from 1/1/01 – 9/30/18.

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