Small Cap Value Strategy

Investment Objective
The Small Cap Value Strategy seeks to outperform the Russell 2000 Value Index with less risk over full market cycles.

Strategy Overview
A small-cap value strategy that seeks to invest in quality businesses that can weather tough times. The portfolio management team believes quality “Compounders” (at attractive prices) tend to hold up better in down markets and provide better long-term absolute performance. The portfolio management team maintains a long-term focus with the guiding principles of diligence, discipline and patience.

• Diligence – Fundamental, bottom-up research based on Graham and Dodd’s principles.¹
• Discipline – A consistent process protects us from behavioral biases.
• Patience – “Wall Street makes its money on activity. We make our money on inactivity.”²

¹ According to Benjamin Graham and David Dodd, value investing is deriving the intrinsic value of a common stock independent of its market price. By using a company’s factors such as its assets, earnings, and dividend payouts, the intrinsic value of a stock can be estimated and compared to its market value. https://business.columbia.edu/heilbrunn/about/valueinvestinghistory

² Warren Buffett’s speech to MBA students at the University of Florida in 1998. In the larger quote, Buffett also endorses the independence and clarity that came from working in Omaha, away from the stimulation of Wall Street. “The best way to think about investments is to be in a room with no one else and just think.”;
Source: https://tilsonfunds.com/BuffettUofFloridaspeech.pdf