Portfolio Guidelines

  • Typically 50–70 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 small- and mid-capitalization companies defined as those companies with a market capitalization between $500 million and $10 billion (or if greater, the maximum market capitalization of companies generally within the capitalization range of the Russell 2500 Index), at the time of purchase.

Top Ten Equity Holdings
As Of September 30, 2018

Cimarex Energy Co. Energy 3.7%
Willis Towers Watson PLC Financials 3.5
Post Holdings, Inc. Consumer Staples 3.3
Boston Scientific Corp. Health Care 3.2
BankUnited, Inc. Financials 3.1
Worldpay, Inc. (Cl A) Info. Technology 2.9
UGI Corp. Utilities 2.8
Kirby Corp. Industrials 2.6
Red Rock Resorts, Inc. (Cl A) Cons. Discretionary 2.5
Axalta Coating Systems Ltd. Materials 2.5
Total As % Of Net Assets 29.9%
Total Number Of Equity Holdings 63

Sector Allocation1
As Of September 30, 2018

Small-Mid Cap Composite Russell 2500 Index Russell 2500 Value Index
Financials 25.3% 15.3% 22.5%
Industrials 12.6 15.4 14.1
Cons. Discretionary 11.1 11.7 8.5
Info. Technology 8.5 15.7 8.8
Real Estate 8.1 9.0 14.7
Consumer Staples 7.6 2.7 3.3
Health Care 5.7 13.6 5.4
Energy 3.7 4.6 7.3
Utilities 3.3 3.4 6.1
Materials 3.3 5.5 6.1
Communication
Services
2.6 3.2 3.1
Cash & Other 8.5 0.0 0.0

Portfolio Characteristics Vs. Benchmark2

As Of September 30, 2018

Small-Mid Cap Composite Russell 2500 Index Russell 2500 Value Index
Median Forward P/E 14.7x 18.1x 16.5x
Median Trailing P/E 19.0x 21.4x 19.3x
Weighted Average Dividend Yield 1.3% 1.4% 2.1%
Median Price / Book 2.2x 2.3x 1.7x
Median Price / Sales 1.7x 2.5x 2.0x
Median Market Cap. $5.6B $1.3B $1.2B
Weighted Average Market Cap. $8.7B $5.3B $4.9B
Portfolio Turnover 5 Year 22% —   —  
Active Share3 vs. Core4 / Value5 Benchmark 95% / 93% —   —  
Upside/Downside Capture Ratio6 vs. Core Benchmark4 90% / 87% —   —  
Upside/Downside Capture Ratio6 vs. Value Benchmark5 94% / 87% —   —  

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 2500 Index is the core benchmark.

The Russell 2500 Value Index is the value benchmark.

6 Source: eVestment Analytics based on monthly returns (gross of fees) from 1/1/06 – 9/30/18.

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