Value Equity
Small Cap Value Strategy
The Small Cap Value Strategy objective is to outperform the Russell 2000 Value Index over the long-term while producing lower risk scores than the benchmark.
Strategy Overview
- Bottom-up portfolio construction
- Buy and sell decisions driven by disciplined focus on key investment criteria
- Multi-year investment horizon
- Adequate diversification with sufficient concentration
- Benchmark risk control
Investment Philosophy
Our goal for this strategy is to outperform the Russell 2000® Value Index with less risk over a full market cycle. Three key criteria guide our portfolio decisions — value, quality and potential for fundamental improvement — and we have designed our investment process to ensure that each of these is properly assessed and always at the forefront of our thinking about potential new investments as well as existing holdings.
Key Facts (as of 12.31.2024)
| Strategy Inception | January 1, 1999 |
| Benchmark | Russell 2000® Value Index |
| Investment Vehicles | Separate Account Mutual Fund CIT |
| Range of Holdings (Issuers) | 70-90 |
| Max Position Size | 3% |
| Total Net Assets | $1.1B |
| Annualized Turnover | 31.4% |
| Active Share | 90.2% |
| Weighted Average Market Cap |
$3.6B |
The Russell 2000® Value Index measures the performance of the small-cap value segment of the U.S. equity universe. It includes those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.
London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). ©LSE Group 2025. FTSE Russell is a trading name of certain of the LSE Group companies. Russell® is a trademark of the relevant LSE Group companies and is used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor, or endorse the content of this communication.
Small Cap Value Investment Team
Risk Considerations: Investments in small-cap companies generally involve greater risks than investing in larger-capitalization companies. Small-cap companies often have narrower commercial markets and more limited managerial and financial resources than larger, more established companies. As a result, their performance can be more volatile and they face greater risk of business failure, which could increase the volatility of a strategy’s portfolio. Additionally, small-cap companies may have less market liquidity than larger companies. The biggest risk of equity investing is that returns can fluctuate and investors can lose money.