Strategies
Small Cap
Small-Cap Equity
Our Small-Cap Equity strategy focuses on the smaller market cap universe of securities. The portfolio comprises 90 to 125 stocks. Each position is weighted at inception within a fairly tight range with a 3% maximum exposure.
• Benchmark: Russell 2000 Index
• Inception: July 1, 2001

RVI Small Cap
Our RVI Small Cap strategy applies the Relative Value Investing (RVI) process to the small cap space, benchmarked by the Russell 2000 Index. The portfolio is sector neutral to the benchmark, weighted at cost within a tight range, comprised of between 50 and 60 stocks and remains fully invested. The strategy seeks to outperform with less volatility than the benchmark by selecting stocks that are undervalued relative to their sector and industry peers, rather than the market overall.
• Benchmark: Russell 2000 Index
• Inception: August 1999

Selected Research and Publications About Relative Value Investing (RVI)
The genesis of Relative Value Investing (RVI) lies in extensive academic research performed by Dr. John W. Peavy and co-researcher, Dr. David A. Goodman, in the early 1980’s. Their research confirms that Relative Value Investing (RVI) provides excess rates of return on both absolute and risk-adjusted bases. Here is a selected bibliography of Dr. Peavy’s and Dr. Goodman’s publications about Relative Value Investing (RVI):
  • "Industry Relative Price-Earnings Ratios as Indicators of Investment Returns," Financial Analysts Journal, July-August 1982.
  • "Price-Earnings Relatives - A New Twist to the Low-Multiple Strategy," The Financial Planner, October 1982.
  • "Responsible Investing: Optimizing the Return/Risk Tradeoff," Trusts & Estates, May 1982.
  • "The Significance of P/Es for Portfolio Returns," Journal of Portfolio Management, Winter 1983. A condensed version of this article was published in The CFA Digest, Summer 1983.
  • "How to Develop a Common Stock Strategy for Uncommon Returns," The Financial Planner, June 1983.
  • "The Effect of Price-Earnings Ratios and Firm Size on Portfolio Returns," The Wall Street Transcript, September 12, 1983.
  • "The Risk Universal Nature of the P/E Effect," Journal of Portfolio Management, Summer 1985.
  • Hyperprofits. New York: Doubleday & Co., 1985. (Fortune magazine Book of the Month, October 1985)
  • "The Interaction of Firm Size and Price Earnings Ratios on Portfolio Performance," Financial Analysts Journal, January-February 1986.
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