Mid Cap Value Managed Account

Defensive-minded specialists aiming to identify undervalued mid-cap opportunities

Overview

ABOUT THIS PORTFOLIO

As defensive value specialists, we look to invest in high-quality companies with strong management teams, stable balance sheets, and durable competitive advantages that are trading at attractive valuations. We seek to achieve excess returns over full market cycles, with less risk than our benchmark and peers as measured by standard deviation, beta and down market capture.

WHY INVEST IN THIS PORTFOLIO

Attractive Reward/Risk
Our disciplined valuation process measures downside risk before upside potential and invests in securities with favorable reward/risk ratios.

High-Conviction Process
The portfolio typically holds between 60 to 90 stocks with business fundamentals considered more important than fluctuations in the wider economy.

Different Than the Benchmark
The benchmark is not used as a starting point for portfolio construction, which should lead to high active share.

PORTFOLIO MANAGEMENT

Kevin Preloger

Portfolio Manager

Industry since 1997. Joined Firm in 2002.

Justin Tugman, CFA

Portfolio Manager

Industry since 2000. Joined Firm in 2004.

Performance

RETURNS (%) (As of 12/31/2019)
Composite Pure Gross* Composite Net Russell Midcap® Value Index
 
3M YTD 1YR 3YR 5YR 10YR Since Inception
(10/01/1998)
Composite Pure Gross* 6.29 31.00 31.00 9.36 9.19 10.83 13.30
Composite Net 5.53 27.25 27.25 6.19 6.03 7.62 10.01
Russell Midcap® Value Index 6.36 27.06 27.06 8.10 7.62 12.41 10.12
RETURNS (%) (As of 02/29/2020)
Composite Pure Gross* Composite Net Russell Midcap® Value Index
 
3M YTD 1YR 3YR 5YR 10YR Since Inception
(10/01/1998)
Composite Pure Gross* -8.81 -11.00 1.94 3.49 6.49 9.42 12.58
Composite Net -9.50 -11.46 -1.03 0.47 3.39 6.25 9.31
Russell Midcap® Value Index -8.97 -11.66 -1.36 2.21 4.44 10.79 9.40

RETURNS-BASED STATISTICS (Composite As of 12/31/2019)

RISK / REWARD
VS. Russell Midcap® Value Index
3YR 5YR
Information Ratio 0.51 0.58
Alpha 1.53 2.03
Tracking Error 2.41 2.70
Beta 0.95 0.92
R-squared (%) 96.58 95.56
UP/DOWN MARKET CAPTURE (%)
VS. Russell Midcap® Value Index
3YR 5YR
Up Capture Ratio 98.75 95.40
Down Capture Ratio 89.68 82.81
STANDARD DEVIATION 3YR 5YR
Mid Cap Value Managed Account 12.54 11.88
Russell Midcap® Value Index 12.97 12.62
SHARPE RATIO 3YR 5YR
Mid Cap Value Managed Account 0.61 0.68
Russell Midcap® Value Index 0.50 0.52

Portfolio

Index represents the Russell Midcap® Value Index.

Top Holdings (As of 02/29/2020)
% of Rep Account
Equity LifeStyle Properties Inc 3.14
Axis Capital Holdings Ltd 2.87
Evergy Inc 2.63
Entergy Corp 2.50
Equity Commonwealth 2.44
Lamar Advertising Co 2.41
Public Storage 2.38
Fox Corp 2.35
Laboratory Corp of America Holdings 2.31
M&T Bank Corp 2.30
Total 25.33
View full holdings
Portfolio Characteristics (As of 02/29/2020)
  REP ACCOUNT INDEX
Number of Holdings
Equity Issues
63 629
Market Capitalization
Weighted Average
$12.54B $14.34B
Portfolio Turnover Rate
(1-year trailing)
41.84% -
Price/Earnings Ratio
(1-year forward)
18.18 18.50
Price/Book Ratio
(1-year forward)
3.31 2.36
Earnings Growth Rate
(1-year forward)
2.45% 1.51%

Sector Allocation % OF REP ACCOUNT % of Index % OF REP ACCOUNT % of Index (As of 02/29/2020)
Financials 21.94 18.14
Real Estate 16.02 14.52
Industrials 12.53 11.78
Materials 10.89 6.53
Information Technology 9.41 7.52
Utilities 9.07 11.90
Communication Services 3.79 3.99
Energy 3.57 4.77
Health Care 3.52 7.43
Consumer Staples 2.89 4.66
Consumer Discretionary 1.61 8.76
Cash & Equivalents 4.76 -
Regional Allocations % OF REP ACCOUNT % of Index % OF REP ACCOUNT % of Index (As of 02/29/2020)
North America 94.28 99.57
Africa/Mideast 0.96 -
Cash & Equivalents 4.76 -
MARKET CAPITALIZATION RANGE OF EQUITY HOLDINGS % OF REP ACCOUNT % OF INDEX % OF REP ACCOUNT % OF INDEX (As of 02/29/2020)
$50B to $100B 0.85
$10B to $50B 49.04 61.88
$5B to $10B 24.63 25.07
$1B to $5B 20.72 12.99
Developed VS Emerging Markets % OF REP ACCOUNT % of Index % OF REP ACCOUNT % of Index (As of 02/29/2020)
U.S. 92.86 99.57
Non-U.S. Developed 2.38 0.36
Cash & Equivalents 4.76 -

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