The Westwood SMidCap Equity strategy:

  • Is actively managed, utilizing a fundamental bottom-up security selection process.
  • Typically invests in approximately 50-70 companies with attractive valuations.
  • Identifies high quality companies with prospects for future profitability that are significantly stronger than what is reflected in the current stock price.
  • Seeks companies with ample free cash flow and low debt.
  • Controls risk by limiting the target weight of each holding, imposing maximum position sizes, and limiting sector weightings. The beta of the portfolio is typically less than that of the market.

Performance

(As of 6/30/2017)

Inception date QTR YTD 1 yr 3 yr 5 yr 10 yr Since Inception
SMidCap Gross of Fees 1/1/2002* 0.69% 3.43% 15.46% 4.03% 12.63% 8.49% 13.12%
SMidCap Net of Fees 0.48% 3.00% 14.49% 3.15% 11.77% 7.77% 12.48%
Russell 2500 Index 2.13% 5.97% 19.84% 6.93% 14.04% 7.42% 9.27%
Russell 2500 Value Index 0.32% 1.95% 18.36% 6.21% 13.69% 6.52% 9.53%

Investment Team

Westwood believes that team management creates a sense of ownership, accountability and consistency in the investment process. Our SMidCap team is supported by a fundamental research team where analysts have cross capitalization responsibilities in specific sectors.

Within our process, Research Analysts generate investment ideas, while the Portfolio Team is responsible for portfolio construction. Each of our Research Analysts is also on a Portfolio Team, which leads to a very collaborative environment where we fully utilize the expertise of all investment team members.

Portfolio Team

Grant L. Taber, CFA

Senior Portfolio Manager/Research Analyst

Prashant R. Inamdar, CFA

Portfolio Manager/Research Analyst

Thomas C. Lieu, CFA

Portfolio Manager/Research Analyst

Susan J. Schmidt, CFA

Senior Portfolio Manager/Research Analyst


Disclosures

*Due to capacity constraints, this product closed to new investors effective October 1, 2009. Performance provided reflects the institutional track record which started January 1, 2002. In 2001, Westwood transitioned a midcap core equity strategy to the institutional SMidCap strategy. The MidCap core portfolio was exclusively offered to private clients of Westwood’s Trust Company. This change occurred as a result of the increased demand we observed by institutional investors. January 1, 2002 reflects the inception of the institutional SMidCap Equity strategy. The true inception date of the composite is 7/1/97. From 7/1/97 to 12/31/14, the gross return is 14.0%, the net return is 13.5%, the return for the Russell 2500 Index is 9.4% and the return for the Russell 2500 Value Index is 9.9%. This strategy has consistently adhered to Westwood’s investment process and philosophy.

 

For purposes of compliance with the GIPS standards, the firm (“Westwood” or the “Firm”) is defined as the assets of Westwood Management Corp. and Westwood International Advisors Inc.  Westwood Management Corp. is an SEC registered investment adviser under the Investment Advisers Act of 1940 that provides investment supervisory services, managing equity and fixed income portfolios.  Westwood International Advisors Inc. is a registered portfolio manager with the Ontario Securities Commission and the Autorité des marchés financiers in Quebec that provides investment supervisory services for global and emerging markets equity portfolios.  Westwood Management Corp. and Westwood International Advisors Inc. are wholly owned subsidiaries of Westwood Holdings Group, Inc. (NYSE: WHG). Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request, as is a complete list and description of the Firm’s composites, by contacting performance@westwoodgroup.com.

 

Westwood Management Corp. claims compliance with the Global Investment Performance Standards (GIPS®).  Unless otherwise stated, performance shown is in U.S. Dollars.

 

The SMidCap Composite includes all taxable and tax-exempt, fee-paying fully discretionary accounts that are invested primarily in equity securities with an investment universe that generally includes companies within the market cap range of the Russell 2500 Index. The minimum portfolio size for inclusion in the SMidCap Composite is $5 million beginning January 1, 2006. Portfolio returns reflect the reinvestment of dividend and interest income. The Russell 2500 Index is an unmanaged index of the shares of small and mid-sized U.S. companies. The Russell 2500 Index is constructed to provide a comprehensive and unbiased barometer for the small to mid-cap segment and is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small to mid-cap opportunity set. The Russell 2500 includes the smallest 2500 securities in the Russell 3000. The Russell 2500 Value contains those Russell 2500 Index companies with lower-price-to-book ratios and lower forecasted growth. The comparative index returns include reinvestment of income but do not include transaction costs or management fees.