Westwood SMidCap Plus+

Westwood’s SMidCap Value Plus+ strategy invests in approximately 45-65 small and mid cap securities across a diverse range of sectors where we expect future profitability to be significantly higher than what the current prices discount. This strategy owns approximately 80% of the same securities as the SMidCap strategy; however, a focus on securities with capitalization over $2 billion provides greater liquidity and capacity. Total portfolio risk is targeted to be less than the market.

Buy discipline

The SMidCap Plus+ portfolio limits the selection universe to companies with market capitalizations between $2 billion and $15 billion. Analysts focus on ideas that have limited downside risk and the opportunity to generate earnings/cash flows that are higher than what the current stock price implies. Companies are monitored and factors considered in analyzing securities include:

• Improving ROE (return on equity)
• A declining debt/equity ratio
• Positive cash flow
• Positive earnings surprise without a corresponding increase in Wall Street earnings estimates

Sell discipline

Companies are reviewed for sale when:

• The stock achieves the price objective
• Fundamental change in company or industry that negatively impacts original investment thesis
• Market Capitalization exceeds $15 billion
• Changes to the company’s fundamentals that make the risk/reward profile unattractive
• A formal review is conducted if a name is down 20% or more over any 30-day period

Performance

(As of 3/31/2013)

Click to download composite performance details.

“Past performance is not a guarantee of future returns. Returns are preliminary and are subject to change. Click here for the performance disclosure. The disclosures provided are considered an integral part of this presentation.”

More information

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Portfolio team