Equity

Essential Small Cap Value Equity Strategy

The strategy pursues long-term outperformance of the Russell 2000® Value Index by investing in small public companies whose current stock price does not accurately reflect intrinsic value.

Collaboration, not consensus

This stable, seasoned team encourages skepticism and limits group think and input from Wall Street to build a differentiated, alpha-driving portfolio.

Unique approach to stock selection

This team is bottom-up, fundamentals-driven, and true small-cap-value focused. At purchase, companies belong to one or more of four categories: N-O-T-E.

Robust risk control implementation

Risk management is viewed as not just a sequential step, but a vital, all-encompassing aspect of the investment process.

Investment approach

The three essential core alpha drivers are value, quality partner, and contrarian.

Leaving no stone unturned to locate value.

The team practices disciplined adherence to bottom-up fundamental analysis to identify companies whose stock prices do not reflect their true value.

Seeking temporarily discounted, quality companies to drive alpha.

The team buys quality companies that are undervalued due to nonpermanent conditions.

Taking a contrarian approach to uncover underfollowed and unloved small-cap companies.

Investments at purchase exhibit one or more of the following N-O-T-E characteristics: neglected, oversold, thematic, and earnings turnaround.

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Composite performance

Average annual returns

(as of 9/30/2024)

4/1/1988

	1M	3M	YTD	1Y	3Y	5Y	10Y	Inception
Composite (Gross)	0.11	8.35	10.91	26.74	7.25	12.38	9.92	13.55
Composite (Net)	0.04	8.13	10.25	25.69	6.31	11.38	8.88	12.56
Benchmark	0.06	10.15	9.22	25.88	3.77	9.29	8.22	10.13

Performance is historical and does not guarantee future results. For more information, please refer to the GIPS composite report found in the documents section.

Calendar year

	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014
Composite (Gross)	16.41	-11.19	37.79	2.39	23.17	-16.00	12.36	30.55	-3.29	9.10
Composite (Net)	15.37	-12.00	36.58	1.44	21.96	-16.85	11.25	29.27	-4.26	8.02
Benchmark	14.65	-14.48	28.27	4.63	22.39	-12.86	7.84	31.74	-7.47	4.22

Performance is historical and does not guarantee future results. For more information, please refer to the GIPS composite report found in the documents section.

Our team

Meet the investment team

A contrarian philosophy helps clients find value away from the crowd by investigating overlooked and underappreciated securities for alpha-driving opportunities.

View Team

Garth Nisbet

Head of Essential Value Equity

Key risks

Market risk: Security markets are volatile and may decline significantly in response to adverse issuer, regulatory, political, or economic developments with different sectors of the market and different security types reacting differently to such developments.

Equity securities risk: Equity securities fluctuate in value and price in response to factors specific to the issuer of the security, such as management performance, financial condition, and market demand for the issuer's products or services, as well as factors unrelated to the fundamental condition of the issuer, including general market, economic, and political conditions.

Small-cap securities risk: If a strategy invests in the securities of smaller-capitalization companies, these securities tend to be more volatile and less liquid than those of larger companies.

Foreign securities risk: If a strategy invests in the securities of non-U.S. issuers, these investments may be subject to lower liquidity, greater price volatility, and risks related to adverse political, regulatory, market, or economic developments and may be affected by changes in foreign currency exchange rates.

Investors should know that this strategy deployed may be subject to additional investment risks. For important information about the investment manager, please refer to Form ADV Part 2.

We look forward to helping you with your investment needs

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